As the cryptocurrency markets brace for the Ethereum merge, search engine Google has added a countdown leading up to the event, dubbed the “Google Ethereum Merge countdown clock”. But what exactly is the Ethereum blockchain merge? Will it have a significant impact on your cryptocurrency investments? Will it change how NFTs are minted on the blockchain network? Will it impact transaction fees or speed on Ethereum? Find out here.
What is the Ethereum merge?
The Ethereum Merge is one of the most significant upgrades on the Ethereum blockchain network. The merge marks the transition of the Ethereum blockchain from a proof-of-work consensus mechanism to a proof-of-stake consensus mechanism. The existing execution layer of Ethereum, better known as the Mainnet, would merge with its new proof-of-stake consensus layer, the Beacon Chain.
In simple terms, proof-of-work is an energy extensive process of validating blocks and mining cryptocurrency on the blockchain network. To reduce the energy consumption in the process of validating blocks and mining on the blockchain, Ethereum is moving towards a more energy-efficient process, proof-of-stake.
Will the energy consumption of Ethereum reduce?
As per a blog post by the Ethereum Foundation, the imminent Merge will bring down the Ethereum blockchain network’s energy consumption by 99.95 per cent. The Ethereum Foundation also says that the update will add more scalability and security along with sustainability to the blockchain network.
Will the Ethereum merge impact the price of the Ether crypto?
The Ethereum Foundation has clarified on multiple occasions that the upcoming merge of the Ethereum Mainnet and the Beacon Chain will not have any direct impact on the price of the Ether token, which is the native cryptocurrency of the Ethereum blockchain network. Despite the reassurance of the Ethereum Foundation, experts expect volatility in the prices of the token in the near term.
How will the merge impact gas fees, transaction speed, and cost of minting an NFT?
Gas fees are the cost incurred to complete transactions on the Ethereum blockchain. It is highly unlikely that the gas fees would reduce since the merge will not substantially modify any factors that directly impact network capacity or throughput. . The transaction speed and cost of minting NFTs will also not reduce because of the same reasons.
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