Why the stakes are so high with the upcoming Ethereum Merge?
We will see the biggest significant upgrade in blockchain history. And the conclusion of the Ethereum merge has far-reaching repercussions for the whole cryptocurrency industry.
Crypto investors are looking forward to the conclusion of May, which has been a month of losses. It’s too soon to say if Bitcoin is currently trading below $30,000 and could fall even further—it appears that the sector will weather the storm. That is, assuming the Ethereum merge goes smoothly.
If you’ve been living under a crypto rock, “The Merge” refers to Ethereum’s long-awaited upgrade to its blockchain, which will see the No. 2 cryptocurrency switch to a proof-of-stake model, which should alleviate concerns about Ethereum’s environmental impact while also dramatically improving transaction speed.
The Merge is the most recent term (the previous one was Ethereum 2.0) for a process that has been in the works for years and has been postponed numerous times. However, top Ethereum figures, including co-founder Vitalik Buterin, are now predicting that the event will take place in August when the Beacon chain (a parallel Ethereum blockchain that serves as a proof-of-stake test) merges with the main Ethereum chain.
They had better be accurate. Right now, cryptocurrency desperately needs a win, and Ethereum pulling off the biggest significant improvement in blockchain history would offer it. It would show that the Ethereum community, which is known for being friendly but lighthearted, is capable of serious business. It might potentially lead to a significant increase in the price of Ethereum.
Also, read – How could Ethereum Merge make crypto greener?
While there are reasons to be optimistic about Ethereum’s chances of completing the merge, there are also reasons to be concerned. The Beacon chain saw a so-called “block rearrangement” event this week, in which its blockchain forked seven times in a row—a circumstance that hasn’t happened in years. While the cause appears to be benign, it sparked a short loss of faith, as the development of additional, competing Ethereum chains following the merge would be disastrous.
To their credit, the top developers assisting in the merge have worked patiently and meticulously to ensure that the new Ethereum blockchain is ready for prime time. And, as Kraken CEO Jesse Powell stated on a recent episode of Decrypt’s gm podcast, he is unconcerned about the multiple delays that have plagued the merge process because success is more essential than speed in a situation like this.
Powell is accurate, but that does not mean that the Ethereum merge can continue indefinitely. Further delays will lead to charges that the Ethereum community isn’t up to the task, and it’s possible that the blockchain’s gas fee issues, which are a key roadblock to crypto adoption, will never be resolved. Failure by Ethereum to go beyond the energy-intensive proof-of-work method would give environmentalists and politicians who already have a grudge against the crypto business more ammo.
Ethereum Merge Testing Enters Final Phase, Price Pumps 6% https://t.co/OqPYnmUBF2
— Chris Borghese (@chris_borghese) May 31, 2022
The final truth is that the stakes for the merge, not just for Ethereum but for the entire crypto industry, could not be greater. Further delays or a botched execution will cause a price crash and a fresh and harsh Crypto Winter, while success will restore faith in Web3’s future. Everyone in the crypto world should be pulling for Ethereum to succeed, including Bitcoin bulls. The alternative is a far worse market than the one we are now in.