According to a Reuters report, the Merge was supposed to launch several years ago but has been delayed several times. However, people associated with the market now expect it to be launched soon. Polymarket, which offers the opportunity to bet with Stablecoins on the happening of upcoming events, has 67 percent bets on this upgrade by October and about 13 percent by September. The Ethereum Foundation has stated on its website that this could happen by the third or fourth quarter of the current year. The delay in upgrade is also affecting the price of Ether.
The second largest cryptocurrency by value has fallen from $3,500 in April to nearly $1,200. The upgrade may also bring relief to investors in the crypto derivative token called stETH. Developers are recoding Ethereum’s mining protocol from its current ‘Proof of Work’ (PoW) model to ‘Proof of Stake’ (PoS).
This upgrade is expected to reduce Ethereum’s electricity consumption by up to 99 percent. 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.
After this upgrade, orders for Ethereum transactions will be placed from stakers. This system is called Proof of Stake. There was a shortage of electricity in some countries due to crypto activities. To tackle this problem, China banned crypto mining last year. In some other countries, there is opposition to crypto mining for the same reason. Last year in Texas, USA, electricity supply was interrupted due to bitcoin mining. There were also protests by the residents of Texas regarding this.
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