Ethereum, the second-largest cryptocurrency by volume and a well-known altcoin, recently announced major changes. The platform known to back the NFT and DeFi wave is preparing a major software update that might have an impact on crypto holdings. Following recent reports, Ethereum is shifting to a less energy-intensive technology after many years as the most popular smart contract blockchain.
Energy consumption has been a huge debate since the technology revolution began. Blockchain platforms such as Bitcoin and Ethereum provided new solutions, but their energy-intensive approaches added to the planet’s concerns. However, Ethereum’s latest upgrade is about to see the protocol adopt a more climate-friendly approach.
The planned update, dubbed “Ethereum Merge,” is the second step in Ethereum’s roadmap. It would see the foremost altcoin convert from a proof-of-work to a proof-of-stake model. The former was an energy-intensive model. ETH would serve as a means to secure the protocol rather than ASIC mining machines. So, this will cut Ethereum’s energy consumption by 90% while also increasing the system’s security.
The Merge Is a Game–Changer for Ethereum
Thoughts of a model change have taken about six years. However, this would mark the first time steps are taken in this direction and at this rate. No doubt, Ethereum’s update comes at the right time. With several interest groups, such as venture capital firms, all interested in the space, there’s no better time to implement this change than now. Many experts believe that this could open the door to more investors.
Here are a few ways ETH2.0 will bring change to Ethereum.
- More users will become validators.
- General participation in Ethereum will increase.
- People will be more interested in blockchain as a whole.
There are strong thoughts concerning the planned change. Many crypto stakeholders expect Ethereum to take off at high speed with this merge. Without a doubt, Ethereum has made a huge contribution to the popularity of the crypto space. All who use a MetaMask wallet for DeFi, dApps, or NFTs know much about Ethereum’s significance to the Web3 cause.
After several delays, it is only a matter of time before something tangible comes off. Ethereum developer Tim Beiko believes the merge could take place as early as August or September. He, however, confessed that the technical nature of the upgrade makes it difficult to place an exact launch date.
I still feel like the (late) August-Nov range is roughly right? Speed of fixing bugs and number of new issues encountered is what makes it hard to predict? I think for it to not happen this year, you'd need a catastrophic event/failure/series of normal bugs
— Tim Beiko | timbeiko.eth 🐼 (@TimBeiko) June 10, 2022
What Do Experts Think?
Several analysts believe the update would help Ethereum rise after new blockchain projects have eaten into its market share in recent months. The popular crypto YouTuber, Hashoshi, expressed his opinions on the merge in a recent episode of his podcast, “Crypto Over Coffee.” He said, “I do believe that we will see a positive reaction in the markets post-merge later this year.“
Hashoshi claims that the merge will speed up processing, improve security, and stabilize Ethereum. It would also reduce Ethereum’s energy consumption by 98 percent or more.
According to Armando Aguilar, an independent crypto analyst, related cryptocurrencies could see a price increase as a result of this upgrade. Many ETH holders are concerned about how to dive into the coming change.
According to the Ethereum website, present ETH holders are not required to take any action as a result of the merge. They can participate in the update by staking or helping to test the upgrades. However, their holdings will stay unchanged.
There is no need to change trading strategies or make any uninformed moves. A lot is yet to take shape. However, it is advised that everyone should do their own research. As of now, ETH trades at $1,195.13. Those figures will definitely change in the coming days as a result of the merge.
SafeStake on Ethereum
With Ethereum’s switch to a proof-of-stake network, staking is now possible, making Ethereum’s token a yield-bearing investment. Staking on Ethereum is a game-changer. It also offers a host of advantages to ETH holders.
— ParaState (@_parastate) June 5, 2022
SafeStake is an effort powered by ParaSwap, a multi-chain smart contract platform, to maximize the opportunities of staking on Ethereum. It would offer Ethereum stakers the chance to earn a passive income. One key challenge in the implementation of staking in the new upgrade is the high requirement to be a validator.
So far, users need about 32 ETH (roughly $64,000) to utilize this option. However, SafeStake has reduced the entry barrier to at least 8 ETH, which is a manageable amount. Furthermore, validators often need to be skilled and tech-savvy. But with SafeStake, people can easily begin their staking journey on Ethereum.
SafeStake does more than increase the security of the ETH 2.0 ecosystem by expanding its collection of validators. It also provides a stable solution for this activity thanks to its technical advantages.
In conclusion, SafeStake is designed to be viewed as a democratic way to stake in Ethereum 2.0. As a result, Ethereum users can enjoy all the benefits of staking on the network. It is without a doubt that staking on Ethereum will be the game-changer for Ethereum. It would quell any doubt about Ethereum’s claim as one of the leading crypto platforms.
⬆️For more cryptocurrency news, check out the Altcoin Buzz YouTube channel.
⬆️Find the most undervalued gems, up-to-date research, and NFT buys with Altcoin Buzz Access. Join us for $99 per month now.