Key points to remember
- Ethereum is on the verge of transitioning from the Proof-of-Work (PoW) model to the Proof-of-Stake (PoS) model.
- The network’s third and final testnet, Goerli, successfully transitioned to PoS on August 11, 2022.
- Ether rose 14% in 24 hours after the announcement of the successful final merger.
To pass from Proof of Work (PoW) at Proof of Stake (PoS), Ethereum finalized the third (and final) testnet merge, Goerli. In the cryptocurrency world, a testnet is a test network designed to experiment with the various improvements of the block chain without harming the main network.
Thanks to the transition to the PoS model, Ethereum block chain should achieve greater scalability and improve its environmental sustainability by eliminating power-hungry PoW crypto-mining treat. In other words, PoS will speed up crypto mining, which is a process of creating new coins and verifying crypto transactions.
Following the news, Ether, native of Ethereum tokenjumped 14% in 24 hours.
Ethereum is getting closer to the point of sale
Ethereum will move from an energy-intensive proof-of-work system to a more environmentally friendly proof-of-stake system. This change is known as the “Merger” and Ethereum’s tentative merger date is set for September 19, 2022. The transition is expected to increase the network’s scalability and make it 99% more environmentally friendly.
The Goerli testnet merger was the last litmus test for Ethereum before it moved to the proof-of-stake consensus mechanism. The successful rehearsal generated excitement in the Ethereum community, especially among leading developers like Vitalik Buterin. Before this merger, Ropsten and Sepolia, the two mergers before this one, had been largely successful. Both events took place earlier this year in June and July.
Which investors will get from the merger?
After switching to the PoS model, Ethereum will be more scalable. Its transaction speed will be improved and its power consumption will also be reduced. As a result, investors won’t have to wait long for their transactions to be verified and won’t have to pay a high price. gas costs.
With three successful testnet mergers, the crypto community has gained confidence that the transition to mainnet will be successful. However, it remains to be seen whether a smooth transition to PoS will end crypto winter.