CRYPTO NEWS: WHAT WILL COME NEXT AFTER THE ETHEREUM MERGER?

WHAT WILL COME NEXT AFTER THE ETHEREUM MERGER
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WHAT WILL COME NEXT AFTER THE ETHEREUM MERGER? THE SECOND-LARGEST CRYPTOCURRENCY IN THE WORLD JUST BECAME A LITTLE BIT BETTER AND GREENER. THIS PAST WEEK, ETHEREUM (CRYPTO: ETH) FINISHED WHAT IS REFERRED TO AS “THE MERGE.” THE EAGERLY ANTICIPATED EVENT TRANSFORMED HOW THE BLOCKCHAIN VERIFIES TRANSACTIONS AND SIGNIFICANTLY REDUCED ETHEREUM’S ENERGY CONSUMPTION.

BEFORE THIS POINT, ETHEREUM HAD PUT OFF THE MERGE A NUMBER OF TIMES. INVESTORS, CUSTOMERS, AND DEVELOPERS CAN ALL NOW SIGH WITH RELIEF. THE MERGE WAS COMPLETE WITHOUT ANY PROBLEMS OR HICCUPS. THE BIG QUESTION AT THIS POINT IS: WHAT DOES THE MERGER MEAN FOR USERS AND INVESTORS? WHAT COMES NEXT?

LET’S INVESTIGATE WHAT WILL COME NEXT AFTER THE ETHEREUM MERGER?

WHAT WILL COME NEXT AFTER THE ETHEREUM MERGER
WHAT WILL COME NEXT AFTER THE ETHEREUM MERGER?

A MARKET DRIVING FORCE:

LET’S FIRST GO OVER A BRIEF HISTORY OF ETHEREUM AND THE MERGER. IT HAS BEEN DEMONSTRATED THAT THE ETHEREUM BLOCKCHAIN HAS THE POTENTIAL TO BE ONE OF THE MARKET’S MAIN DRIVERS. ACCORDING TO THE WEBSITE STATE OF THE DAPPS, IT HOSTS MORE THAN 2,900 DECENTRALIZED APPLICATIONS. 

ACCORDING TO DATA FROM CRYPTOSLAM, ETHEREUM IS THE LARGEST BLOCKCHAIN IN TERMS OF SALES VOLUME WHEN IT COMES TO NON-FUNGIBLE TOKENS.

HOWEVER, ETHEREUM HAS EXPERIENCED SIGNIFICANT ISSUES WITH ENERGY CONSUMPTION, SPEED, AND FEES. BECAUSE OF THIS, SOFTWARE ENGINEERS HAVE BEEN CONSTRUCTING A MASSIVE, MULTI-PHASE UPGRADE. THE SECOND STEP WAS THE MERGE. IT SIGNALED ETHEREUM’S FORMAL SWITCH FROM PROOF-OF-WORK TO PROOF-OF-STAKE VALIDATION.

TO VALIDATE A TRANSACTION, PROOF OF WORK REQUIRES SOLVING CHALLENGING COMPUTATIONAL PUZZLES. ETHEREUM USED ROUGHLY THE SAME AMOUNT OF ENERGY EACH YEAR AS THE NETHERLANDS AS A RESULT. ETHEREUM’S ENERGY CONSUMPTION DECREASED BY MORE THAN 99% AS A RESULT OF THE PROOF OF STAKE TRANSITION.

THAT’S GREAT NEWS FOR THE ENVIRONMENT. ADDITIONALLY, ETHEREUM IS MORE APPEALING TO A WIDER RANGE OF USERS AND INVESTORS DUE TO ITS GREENER PROFILE. HIGH STAKEHOLDER VALIDATION IS ENABLED BY PROOF OF STAKE, WHICH DOES NOT REQUIRE A LOT OF COMPUTING POWER.

ONE OF ETHEREUM’S MAJOR ISSUES WAS THUS RESOLVED BY THE MERGE. THE DECISION DOES NOT ALTER HOW PEOPLE USE ETHEREUM IN ANY OTHER WAY.

THE FOLLOWING ACTION IS:

IN THE THIRD SECTION OF THIS GENERAL UPDATE, ETHEREUM IS WORKING TO ADDRESS THE ISSUES WITH SPEED AND FEES. SHARDING IS THE TERM FOR THIS PROCESS, WHICH ETHEREUM PLANS TO INTRODUCE IN 2019. TO REDUCE CONGESTION, SHARDING HORIZONTALLY DIVIDES THE DATABASE. TRANSACTIONS WILL SPEED UP AND BECOME MORE AFFORDABLE AS A RESULT.

LET’S NOW EXAMINE THE UPGRADES IN TERMS OF THEIR COST. THE SUPPLY OF ETHEREUM COINS MAY EVENTUALLY DECLINE AS A RESULT OF THE MERGER. THIS IS DUE TO THE BLOCKCHAIN NO LONGER REWARDING MINERS WITH ETH FOR ADDING NEW DATA BLOCKS TO THE BLOCKCHAIN. THE IDEA OF A HIGHER PRICE IS SUPPORTED BY THIS DECREASE IN SUPPLY.

IN FACT, THE PRICE OF ETHEREUM DROPPED AFTER THE MERGER. THE PRICE DID, HOWEVER, INCREASE BY ABOUT 20% OVER THE PREVIOUS THREE MONTHS, SO IT’S IMPORTANT TO KEEP THAT IN MIND. SOME INVESTORS MIGHT BE LOCKING IN GAINS RIGHT NOW.

THE MERGE OR SHARDING, IN MY OPINION, WON’T SUDDENLY CAUSE ETHEREUM’S PRICE TO SOAR. THEY OUGHT TO INSTEAD GRADUALLY INCREASE IN VALUE OVER TIME. AS COIN SUPPLY STARTS TO DECLINE AND ENERGY CONSUMPTION DECREASES, THE MERGER WILL BE ADVANTAGEOUS. FURTHERMORE, AS MORE USERS COME TO ETHEREUM AS A RESULT OF SHARDING, THEY WILL VALUE THE QUICK, AFFORDABLE TRANSACTIONS.

IN WHAT WAYS DOES THIS ALL AFFECT YOU AS AN INVESTOR?

WOULD IT BE WISER TO WAIT TO PURCHASE ETHEREUM? THE MAIN QUERY IS ALWAYS THAT. SINCE CRYPTOCURRENCY IS STILL RELATIVELY NEW, IT IS A RISKY FIELD. IN A FEW YEARS, WE HAVE NO IDEA HOW THE ENVIRONMENT WILL CHANGE. NEVER INVEST MORE THAN YOU CAN AFFORD TO LOSE, THAT IS THE MOST IMPORTANT RULE.

IN LIGHT OF THIS, ETHEREUM SEEMS PROMISING. CURRENTLY A LEADER IN THE CRYPTOCURRENCY SPACE, IT IS WORKING TO KEEP THAT POSITION. ETHEREUM HAS THE POTENTIAL TO RANK AMONG THE TOP COMPETITORS IF CRYPTOCURRENCIES DO CHANGE HOW COMMERCE IS CONDUCTED. THE OPPORTUNITY TO INVEST IN THIS FASCINATING CRYPTOCURRENCY IS THEREFORE EXCELLENT RIGHT NOW.

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CRYPTO NEWS: WHAT WILL COME NEXT AFTER THE ETHEREUM MERGER?

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