Barry Silbert, founder of Digital Currency Group, one of the big crypto firms, says that he is really excited about the upgrade to the blockchain Ethereum. He believes that this can significantly improve the efficiency of Ethereum. Called Merge, this upgrade is expected to reduce Ethereum’s electricity consumption by up to 99 percent. S
In this upgrade, there will be a shift from proof-of-work mechanism to proof-of-stake which consumes less electricity. For applications related to decentralized finance Ethereum This is important and this change will also reduce the worries of investors regarding the climate. The price of ETH increased in the last week. However, it has dropped in the last few days and this indicates that enthusiasm for this upgrade is waning. The launch of the upgrade will not immediately address the scaling issues of the network as its efficiency-enhancing technology Sharding has to be implemented post-upgrade.
Merge is set to release in September. Tim Beiko, one of the developers of the Ethereum Foundation, took to Twitter earlier this month to announce the update’s release in September. He had told that some more tests of the network will be done before it is released for use. These tests will help developers understand the performance of the network after the upgrade. More than $100 billion of decentralized finance (DeFi) apps are supported on this blockchain, and because of this, the upgrade is being cautious. There have been hurdles in this project before.
This recent upgrade to the public test network Sepolia has created a trial had completed. The Sepolia testnet will be monitored for the next few days. The upgrade may also bring relief to investors in the crypto derivative token called stETH. Ethereum miners have to use large server farms to order transactions on the blockchain, resulting in higher electricity consumption and increased carbon emissions. One estimate stated that the electricity usage of one Ethereum transaction is equivalent to 1,40,893 Visa credit card transactions.