The Merge has been a hot topic of conversation within the Ethereum ecosystem for years. The third revision of the original Ethereum whitepaper included references to proof-of-stake in 2014. Vitalik Buterin added references to PoS, stating that both PoW and PoS can “serve as the backbone of a cryptocurrency.”
“The mechanism behind proof of work was a breakthrough in the space. an alternative approach has been proposed called proof of stake. calculating the weight of a node as being proportional to its currency holdings and not computational resources. it should be noted that both approaches can be used to serve as the backbone of a cryptocurrency.”
Further, later in the paper, Vitalik said that in the future, it is likely that model for security. It has been almost nine years since the whitepaper was published, and the move to PoS is yet to materialize.
Ethereum vs Proof of Sake, Official Date
However many already know but it has been officially marked For September 2022. More accurately, one Ethereum developer has now calculated the project block height will be reached at 10:57 on September 14. This date may go down on record as the most important day in the history of the internet.
The Merge is important not just because it is the culmination of years of work by the Ethereum developer community but because it cements Ethereum as one of the most critical building blocks for the future internet. It upgrades the security while lowering its energy output, thus making it a viable mechanism for companies with ESG requirements.
A PoS Ethereum silences the misguided narrative of PoW being bad for the environment while reducing Ethereum emissions by 90%. Ethereum’s inflation currently sits at 4.3%; this will drop to roughly 0.4% after The Merge, while significant fiat currencies are presently recording 40-year highs.
Oil change at 30,000 feet
The Merge has to be one of the most technically advanced coding upgrades in the history of the internet. Ethereum hosts over 500k ERC20 tokens according to on-chain data, meaning half a million projects rely on Ethereum to settle transactions within their ecosystem. There are also roughly 4,000 dApps on Ethereum and over 500k active addresses.The entire network will be merged with the Beacon Chain, changing its consensus mechanism, all while the network continues to produce blocks. There will be no downtime, and all applications will continue to run throughout the upgrade.
Many web 2.0 applications require servers to be restarted or put in ‘maintenance mode’ when significant updates are made. Ethereum has no such luxury; The Merge will happen while the network continues to grow.
The future of the internet
Web3 is now a common term in technology. But it has yet to acquire mainstream adoption. Ethereum may have been held back in its adoption with a significant upgrade hanging over its development. Once the Beacon Chain is implemented on the main net, the future roadmap will be much more straightforward.
Should web3 gain mainstream adoption and become a part of our daily lives? It is clear that Ethereum will be a major component. While layer-2 solutions will likely facilitate most transactions, Ethereum will continue to perform as the settlement layer for a large part of web3. September 14, 2022, could go down in history as the true birth of web3, or if The Merge fails, it could be its downfall.
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