During this week, one of the most anticipated events in the crypto community known as ‘The Merge’ is taking place on the Ethereum network. This is the platform update that includes a series of changes in this digital currency platform.
There are many comments and information that are said about this merger. Therefore, below, we are going to let you know the main changes that can be presented on this platform. As of the merger, the network will only be able to validate transactions that are made using the Proof of Stake (PoS) method. This instead of the already known Proof of Work (PoW) validations. The main goal with this merger and change in the network is to reduce energy consumption as much as possible. Expenditure is expected to fall by up to 99.5%, making the chain much more efficient in carrying out its processes.
The platform also aims to guarantee more security, optimization and scalability for its users. The changes that are coming for Ethereum also include effects on asset prices in the short, medium and long term. For now, the rates will not be affected or the speed will be increased, but there will be a greater network scalability.
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Initially, this network will work in Proof of Participation (PoS) mode, and during this time it will not be possible to withdraw securities that have been placed. Once ‘The Merge’ is over, ETH issuance is expected to drop dramatically. The cut in emissions is expected to be 90%. It will also not be possible to issue ETH tokens that are to remunerate miners, in which case a reallocation of transaction fees will be initiated.
Despite several months of tests and studies, there is still room for doubt. The long-awaited ‘The Merge’ could go wrong and that is why it is a merger expected by so many. However, this process is expected to bring very positive results for Ethereum, including having a “greener” and more environmentally friendly network. This will attract investors and will surely result in more moves in the coming weeks.
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