By
Bhushan Akolkar
May 10th, 2024
The upcoming September Ethereum Merge has already sparked conversations as the blockchain seeks to overhaul its operational module.
As the highly-anticipated Ethereum Merge slated to take place in September approaches, talks have begun about how this impacts the broader crypto space. Initially expected to go live on September 19th, fresh reports suggest that the pivotal Ethereum blockchain upgrade may occur four days earlier. However, other reports indicate that the date may change again as developers continue to source as many capable, powerful computers as possible.
Regardless of the eventual date, it is certain that the Ethereum Merge will happen in September. In addition, this network upgrade will mark a watershed moment for Ethereum’s overall performance going forward. Improvements are expected with how the versatile blockchain manages energy consumption, transaction speed, and feasible scalability.
Takeaways from Upcoming Ethereum Merge
The Ethereum Merge looks to render the blockchain ‘greener’ and more environmentally friendly. It will achieve this by shifting from a proof of work (PoW) model to the less energy-intensive proof of stake (PoS). Furthermore, by undergoing this radical change, Ethereum seeks to pave the way for unlimited optimization down the stretch. This also implies that evolving phenomena such as decentralized finance (DeFi), non-fungible tokens (NFTs), and smart contracts stand to immensely benefit.
The incoming PoS blockchain orientation also suggests that users can execute tasks far cheaper and possibly more conveniently. Reports also indicate that the Merge will heavily cut down on required energy by over 99%. This is because owners of the underlying native ETH currency can now stake some of it to power the blockchain. By comparison, the outgoing PoW module relies heavily on traditional mining, where users deploy powerful computers to solve complex math puzzles. This method served as the only way that users could run the Ethereum network or create new tokens.
Before its September due date, the upcoming Ethereum operational transition underwent a series of successful testnets. These testnets are dress rehearsals from which developers can take vital success story cues ahead of the main event. Yet, reports also suggest that there remains a small chance of things going awry during the main Merge. Such potential mishaps include the network running slowly for a while or even grinding to a complete halt.
What Does the September Upgrade Mean for ETH Price, Mining Community?
Despite upbeat talks about how benefits of the Merge, there are also cost implications. It still remains unclear just how much the September system upgrade will impact the price of Ether. However, some market observers believe that the Merge will boost the value of ETH, especially when compared to Bitcoin (BTC).
Furthermore, the fallout from the Merge could also render miners redundant in an increasingly evolving crypto space. To this, talks of Ethereum Classic are already making the rounds among the mining community. In fact, some observers believe that Ethereum Classic, which retains mining, may eventually surpass the new Ethereum in popularity.