Experts Take On Ethereum’s Prospects After The Ethereum Merge
A few hours after the Ethereum Merge, industry experts have provided their perspectives on the transition to proof-of-stake and cautions regarding possible problems. The Ethereum Merge is set to occur later today, and industry observers predict that the transition, centered on enhancing energy efficiency, will substantially impact the investment and adoption of cryptocurrencies.
In the days preceding the Merge, Eli Ben-Sasson, president and co-founder of StarkWare, told that the Ethereum Merge would be the “first step in a process that will lead to widespread adoption of Ethereum.” Ben-Sasson spoke these words as the Merge neared.
— Lark Davis (@TheCryptoLark) September 15, 2022
The immediate relevance of The Merge lies in its enormous impact on the quantity of energy used.Compared to Ethereum’s current Proof-of-Work (PoW) consensus method, which employs massive amounts of energy in a race to solve arbitrary mathematical problems, it is estimated that The Merge would reduce Ethereum’s total energy usage by 99.95 per cent.
As Ben-Sasson remarked, “When I consider the Merge, the birth of the first solar fields comes to mind.”
“We found that reducing the negative environmental consequences of electricity generation significantly is possible.” If we’re creating energy with less pollution, it’s time to utilize it carefully. Ben-Sasson is confident that the result will be one in which the general population uses applications based on blockchain technology in various aspects of life, “and as naturally as people use smartphone apps today.”
Asher Tan, the chief executive officer of the cryptocurrency exchange Coinjar, feels that the Merge will alter the narrative around cryptocurrencies in general. He notes that it is rare for a part of the technology business to “achieve such a significant reduction in their energy consumption.”
“We believe that the significance of the 99.95% decrease in energy use after Merge is understated,” remarked Tan. We feel that the importance of the decline in energy use is grossly underestimated.
It makes the Ethereum network more palatable to the general public and opens the door to crypto-agnostic investors and enterprises. Despite the euphoria around Ethereum’s transformation, it is still debatable if the Merge has already been reflected in the price of Ether (ETH).
According to Charmyn Ho, who oversees crypto insights at the cryptocurrency exchange Bybit, the company’s analysts have concluded that there is “no unanimity” among institutional investors and market makers about short-term trading in connection to The Merge. Instead, these parties are likely to amass ETH and become hodlers.
While this is occurring, most of those participating in the Ethereum “bubble” does not seem concerned about the Merge’s success.
Joseph Lubin, one of Ethereum’s co-founders, said that he expects the move to have no impact on Ethereum’s developers and users and that it would be “as seamless as if your iPhone or laptop changed its operating system overnight.”
Ben-Sasson, who works with StarkWare, concurs that the transition would be painless, and he thinks that the “Ethereum Foundation has prepared so meticulously for this moment, and inspires a great deal of confidence,” noting:
“When the first block is established by proof of stake, it will be a significant milestone indicating the initiative’s success.” However, this is like completing the launch of a rocket; we still have the rest of the journey, which will undoubtedly be fraught with challenges. “
Lubin considers this the third most important event in the realm of cryptocurrencies, behind the birth of Bitcoin and Ethereum. He ranks it just below the inventions of Bitcoin and Ethereum.