Understand Ethereum merge and how it makes crypto greener

Ethereum is preparing for an upgrade that’s been described as “the single most important event in crypto history.”

The transition would overhaul the infrastructure of the world’s second-largest blockchain.

Analysts predict the changes could cut the network’s energy costs by 99% and push the price of Ether, but the plans have been beset by delays.

Here’s everything you need to know about the long-awaited “merge.”

What is the Ethereum merge?

The merge aims to make the Ethereum blockchain more efficient by switching from a proof-of-work (PoW) mechanism to a proof-of-stake (PoS) system.

PoW, which was pioneered by Bitcoin, is secured by crypto miners solving complex but pointless mathematical puzzles — a process that consumes vast amounts of energy.

A PoS system, meanwhile, is maintained by users staking crypto to process transactions.

Ethereum currently runs both mechanisms. The merge will combine the two layers in a single proof-of-stake-based chain. All the Ether cryptocurrency on the network will be unaffected by the switch.

What are the pros and cons of the merge?

PoS proponents expect the merge to make Ethereum more scalable, secure, and sustainable.

The switch would make the blockchain’s miners obsolete and slash the emissions of the numerous projects — including many NFT platforms — that run on the Ethereum infrastructure.

Carl Beekhuizen, a researcher at the Ethereum Foundation, estimates that the transition will reduce the network’s energy consumption by 99.95%. That could also convince more people to invest in Ethereum.

However, not everyone is convinced of the benefits. Critics have raised concerns about the security risks and doubts about the impact on Ethereum’s scalability.

Yet perhaps the biggest issue is the merge’s endless postponements.

When is the merge happening?

Ethereum’s long-awaited upgrade — known as “the merge” — could happen on September 15 or 16, according to a prominent member of the blockchain’s community.

On Aug. 12, 2022, Ethereum co-founder Vitalik Buterin said via Twitter that the merge will likely occur around Sept. 15. But the project, which has been in development for a few years, has been delayed several times before. While it seems that plans for the merge have become firmer, more delays are possible.

Central to the merge is the goal of reducing energy consumption. Ethereum estimates its energy consumption will drop by more than 99.95%. It also claims the merge will lead to better scalability.

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