Significance of Merge Upgrade on Ethereum’s Blockchain by Citigroup
- The merge update is now scheduled for September 19th
- The value of Ethereum has shown a bullish momentum
The major update of Ethereum, Merge, is now scheduled for the end of September, amid the most exceptionally expected cryptocurrency events due to elements such as the estimated bullish effect on the price of the asset. In harmony, Citigroup, a multinational investment bank, strongly believes that the update may have many suggestions for the blockchain.
According to the banking firm, when the update is initiated, it could provide lower energy strength, moving Ethereum to a deflationary asset and a likely direction to a much more useful and effective future by scarpe.
Citigroup stated that moving to Proof-of-stake could reduce the regular issuance of Ethereum by 4.2% in one year. The research of this firm states that “As Ethereum becomes a deflationary asset, the virtual currency will gain much prominence as a store of value.
Ethereum – a deflationary asset
The firm also predicted that the probability of Ethereum as a deflationary asset being the blockchain with maximum output is very low. The block time of Ethereum will drop to 12 seconds from 13, giving a jump in fees and an increase in speed.
Unsurprisingly, the firm highlighted that as a PoS network, Ethereum would capture liquidity, allowing the use of different cost methods that are not
Available to the blockchain at this time.
Mainly, the company considered that Ethereum could be taken as a power-saving and eco-friendly crypto after the introduction of Merge, as it will reduce energy usage by 99.95%.
What does the merger entail?
The update scheduled for September 19 will see the blockchain “merge” the ongoing Ethereum Mainnet with the Beacon Chain PoS system. In exchange, it will allow Mainnett to continue to be protected by Proof-of-Work; at the same time, the chain runs concurrently using PoS.
Interestingly, after the announcement of the launch of Merge, the value of Ethereum has shown a bullish momentum, with the price disobeying the market collapse to witness minor gains.
As a result, the market is predicting more changes on the network, with the latest report showing that the merger will act as a motivation to push Ethereum to become a “global institutional asset.”
Andrew is a blockchain developer who developed his interest in cryptocurrencies while graduating. A keen observer of detail, he shares his passion for writing alongside being a developer. His backend knowledge of blockchain helps him bring a unique perspective to his writing
