ethereum news: The crypto world awaits Ethereum’s merger for more efficiency and use cases
The upgrade will move it towards a more efficient mechanism and bring significant changes to the Ethereum network and potentially change the investment outlook for the blockchain.
With The Merge, Ethereum will move towards a more sustainable, eco-friendly blockchain closer to its original vision, making it more energy efficient and faster, said Edul Patel, CEO and Co-Founder, Mudrex.
“The merger will complete Ethereum’s transition to PoS, making it extremely energy efficient and convenient to make payments. It will only help Ethereum’s massive use cases, and ultimately increase demand for the ETH token,” he added.
Arijit Mukherjee, Founder, Yunometa said that the merger is of great significance for the industry as the second most popular crypto-asset is slated to be more efficient in every way imaginable with its carbon footprint set to decrease significantly.
After Bitcoin, Ethereum is the decentralized blockchain powered by its original currency, ether (ETH). It is the second largest crypto asset, with a market capitalization close to $220 billion.
Ethereum is responsible for creating smart contracts, which power many of the important crypto initiatives, such as decentralized finance (DeFi), decentralized apps (dapps) and non-fungible tokens (NFT).
With the merger, the minting costs for NFTs, also known as gas fees, will be lower. Trading old NFTs also costs gas, which is expected to come down, said Patel of Mudrex.
Today, most decentralized apps, or DApps, are built on the Ethereum blockchain. With a more energy efficient and faster blockchain, creators will be equipped with sufficient bandwidth to build products.
“We expect a positive impact on the Ethereum NFT market after the successful completion of ‘The Merge’. The impact will spill over to Ethereum-based NFT projects in the coming days,” said Yunometa’s Mukherjee.
As for legacy NFTs, they may be affected during the transition, but the team will definitely try to plug any issues that arise from the transition into The Merge, he added.
Under the new PoS mechanism, Ethereum will be secured by validators and not miners. These validators will create blocks when they are selected by the blockchain and verified by others, and in turn help secure the network.
When a new block is added to the network, rewards will be distributed in ETH in proportion to each validator’s effort. The network will require a validator to stake 32 ETH to participate in the validation mechanism.
Pardeep Narwal, Founder, New Edge Soft Sol said that some believe that “The Merge” will have an impact on legacy NFTs as well, this is because every NFT sold can also be sold on Ethereum 2.0, causing duplication of NFTs . – However, it cannot be guaranteed that this can happen.
For crypto validators, switching to other coins may be the best option available. While many tests are currently being done to make sure things don’t go the other way, only the future will tell, he added.
The merger is likely to result in a decrease in the total supply of ETH, which is seen as a positive change for the second largest crypto asset. A few experts believe that this will make Ethereum a store of value and a hedge against inflation.
The most anticipated positive impact of The Merge will be significantly less energy consumption, which will help ease ongoing environmental concerns surrounding NFTs in the coming days and make them an even more attractive proposition, Mukherjee said.
