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Crypto community calls Ethereum Merge a positive move; expected to reduce energy by 99%

The change in protocol will improve the perception of cryptocurrency and attract a new flock of institutional and individual investors

Crypto community calls Ethereum Merge a positive move; expected to reduce energy by 99%
Justin Drake, an Ethereum researcher, predicted that the Merge would also result in a 0.2% decrease in worldwide electricity use.

Ethereum’s historic transition to proof-of-stake (PoS), with most of the crypto community still abuzz with excitement following the successful Merge. The main modification brought about by the Merge is the 99% reduction in energy usage for Ethereum. “This shifts Ethereum from a proof-of-work (PoW) to a PoS consensus, thus, making the blockchain more energy efficient, increasing scalability, improving the speed of computations, and reducing costs,” Prashant Kumar, founder, CEO, weTrade told FE Blockchain.

Amid the Ethereum Merge, the Ethereum community celebrated the successful transition of the network to PoS by releasing artwork and music. Furthermore, Non-fungible token (NFT) artist Beeple, the maker of one of the most expensive NFTs ever sold, published an illustration showing a giant Ethereum logo that appeared to slowly emerge with help from what appears to be scientists. “The news of this merger has increased the hashing power by nearly 200% in just the last 30 days.  The effect of this news has been speculated on Ethereum price as the prices have been falling for the last week by approximately 6%,” Sathvik Vishwanath, co-founder,  CEO, Unocoin, added.

Ethereum’s co-founder Vitalik Buterin in a series of tweets mentioned the forward plan for the blockchain. Buterin further proposed a five-step, incremental process that will get the Ethereum smart contract blockchain to what he called the “endgame.”

It is further noted that the Merge will use 99.5% less energy compared to the old protocol. “After the PoW network ceases to exist, Ethereum issuance will decline drastically, raising the value of Ethereum in the process. Overall, the change in protocol will improve the perception of cryptocurrency and attract a new flock of institutional and individual investors,” Swarup Gupta, financial head, Economic Intelligence Unit (EIU), stated.

Furthermore, musician Jonathan Mann provided a summary of Ethereum’s history. 

According to Rostin Behnam, chair of the US Commodity Futures Trading Commission (CFTC), the switch to PoS take on the Ethereum blockchain may aid in lowering the energy consumption of cryptocurrencies and also hinted that legislation would probably still be required to address the issue.

Meanwhile, Justin Drake, an Ethereum researcher, predicted that the Merge would also result in a 0.2% decrease in the use of electricity worldwide. Buterin cited Drake’s prediction in the hours prior to the event.

The reduction in the amount of ETH distributed as incentives for validators’ labour maintaining the network is the second significant change brought about by the switch to PoS, and this has made ETH a deflationary asset.

Nischal Shetty, founder, and CEO of the Indian cryptocurrency exchange WazirX said that Ethereum is the “OG of smart contracts” and has been instrumental in creating the Web3 ecosystem.

Source: Twitter

Dogecoin’s official Twitter account, which is currently the second-largest PoW cryptocurrency by market value, congratulated Vitalik Buterin, the co-founder of Ethereum, and everyone else engaged in the Merge.

Also Read: Ethereum Merge explained: Experts’ insights on potential risks 

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