Indian Blockchain industry hails Ethereum merger for greener crypto
New Delhi, Sep 15 (IANS) The Indian blockchain industry on Thursday hailed the historic upgrade of , known as ‘Merge’, which will create a more energy efficient network based on the second largest cryptocurrency (after ) with a pledge to save the environment.
The merger was the most complicated upgrade to Ethereum to date – from a proof-of-work consensus mechanism to a proof-of-stake Blockchain – to make Ethereum at least “99 percent more energy efficient”.
Ethereum currently uses the same consensus mechanism as Bitcoin “known as proof of work which requires huge amounts of energy”.
Now “Proof of stake” is different as it gets rid of miners and uses validators, people who “stake” or unlock Ethereum to keep the network secure and running, which is less energy intensive.
Ashish Singhal, co-founder and CEO, CoinSwitch, said the success of the Ethereum merger is a historic moment in the crypto world.
“The energy consumption of blockchains has been a significant concern around the world since the rise of DeFi (Decentralised Finance) solutions and their wider adoption. Some countries even considered knee-jerk bans on the mechanism behind the technology in the interest of sustainability,” he said in a statement.
By successfully transitioning to a Proof of Stake mechanism, they have made Ethereum 99 percent more energy efficient.
“The developers did it without disrupting the network, the thousands of apps and protocols based on it, or the users who have invested in its native coin. This is truly a feat of engineering,” Singhal said.
According to Avinash Shekhar, CEO of ZebPay, “Merge” is a landmark event in the crypto space with huge potential.
“As Blockchain soon shifts to a POS system, we could see increased use of the Ethereum blockchain by innovators. We could see more De-fi, NFT and Web 3.0 applications running on the Ethereum blockchain because of this upgrade , he mentioned.
According to Sathvik Vishwanath, Co-Founder and CEO, Unocoin, the news of this merger has increased hashing power by almost 200 percent in the last 30 days.
“As an advice to investors, Ethereum and Ethereum-based coins and tokens may be highly volatile after this merger, and any uncalculated risk may prove fatal,” he said.
Prashant Kumar, founder and CEO of weTrade, said that with a successful merger, Ethereum can await new investors as it transitions to this 2.0 version.
— IANS
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