The world’s second largest cryptocurrency just got a little better – and greener. Ethereum (ETH -10.54%) He completed what is known as “the merger” last week. The much-anticipated event changed the way the blockchain verifies transactions — and dramatically cut Ethereum’s power usage.
Ethereum postponed the merger several times before reaching this point. Today, investors, users and developers can all breathe a sigh of relief. The integration happened without any glitches or glitches. So now, the big questions are: What does the merger mean for investors and consumers? And what’s next?
Let’s ‘find out.
A driving force in the market
First, a little background on Ethereum and the integration itself. The Ethereum blockchain has proven to be one of the driving forces in the crypto market. It accommodates over 2,900. Decentralized applicationsAccording to the dApps website. And when it comes Invincible tokensEthereum is the largest blockchain in terms of sales, CryptoSlam data shows.
However, a few big problems have plagued Ethereum: power consumption, lack of speed, and high fees. This is why software engineers are working on so many multi-stage upgrades. The integration was the second step. Ethereum official transition to a Stock confirmation Verification method from job verification.
Proof of work It involves solving complex computational puzzles to verify the transaction. As a result, Ethereum uses the same amount of energy as the Netherlands every year. This proof-of-stake switch means that Ethereum’s power usage has been reduced by over 99 percent.
This is a huge plus for the planet. And this green profile makes Ethereum more attractive to many investors and users. Stake proofing provides verification power to senior stakeholders — eliminating the need for major computing power.
So the merger solved one of Ethereum’s biggest problems. Otherwise, the move will not change the way individuals use Ethereum.
The next step
Regarding speed and fees issues, Ethereum is in the process of solving them in the third part of this comprehensive update. This step is called “sharding”, and Ethereum aims to launch it next year. Sharding divides the database horizontally to relieve congestion. As a result, transactions become faster – and cheaper.
Now, let’s look at the updates in terms of price. The merger could eventually lead to a decrease in Ethereum coin supply. This is because the blockchain cannot pay miners ETH to add data blocks to the blockchain. This decline in supply supports the idea of high prices.
Following the merger, the price of Ethereum actually dropped. But it is important to take into account that the price has increased by 20% in the last three months. Some investors may have locked in profits today.
I don’t see the merger or sharing as an event that will make Ethereum skyrocket overnight. Instead, they should gradually drive up values over time. As the merger begins to push down the coin supply, it helps reduce power usage. And sharding, as it attracts more users to Ethereum — they appreciate faster and cheaper transactions.
What does all this mean for you as an investor?
Should you buy Ethereum now or wait? That is always the biggest question. Cryptocurrency is a dangerous area because it is so new. We don’t know what the landscape will look like for several years down the road. The bottom line is not to invest more than you can afford to lose.
With that in mind, Ethereum looks promising. This crypto is now the leader and is on track to maintain that lead. Ethereum has revolutionized the way cryptocurrency is done. He has what he wants. To become one of the main players. And that’s why now is a good time to get into this exciting cryptocurrency.
Should you invest $1,000 in Ethereum right now?
You may want to ask this before considering Ethereum.
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