Ethereum Is Getting Closer To Switching Its Network To Proof-Of-Stake Model!
Recently Ethereum announced its third and final merge and it became a reality yesterday. Ethereum is getting closer to switching its network to the Proof Of Stake Model.
In the Cryptocurrency Ecosystem, a testnet is a test network that is specifically designed to test the applications before deploying it Mainchain. This is specifically done to find bugs and do the due diligence on the website without spending gas fees in real. The Ethereum developers have merged the final update to the Goerli testnet that transited it from POW to the POS consensus algorithm.
Ethereum Is Getting Closer To Switching Its Network To Proof-Of-Stake Model
With POS upgradation, It is expected that Ethereum would offer much scalability and would be quite eco-friendly, as it would not require any high-performance devices to validate the transactions. This won’t harm the main network or the applications deployed on It.
POS consensus algorithm would speed up the crypto transaction validation and users would experience quite high TPS ( transaction per second) rate.
After the CPI news and Merge, The Ethereum token rose by 14 percent in one single day.
- After CPI had announced the inflation rate the Ethereum Price had risen by 14 percent.
- Ethereum has finally merged its third and final testnet on August 11, 2022, and transitioned to proof of Stake.
- Ethereum is quite close to shifting to the Proof of Stake Consensus Algorithm from Proof of work.
Ethereum is quite close to the mainnet launch.
Ethereum mainnet would be soon migrated from a high resource consuming Proof of Work consensus algorithm to POS. The transition would be known as the “Merge”. As per the official announcements by Ethereum Community, the Merge would happen around the 3rd Week of September i.e. 19th of September 2022. As per the reports, the POS algorithm would make the network 99 percent environment friendly and would increase scalability.
After two successful merges on Ropsten and Rinkeby testnet, Ethereum has made the final merge on the Goerly testnet. This is the final litmus test or dress rehearsal before merging to Mainnet. Vitalik Buterin co-founder of Ethereum is quite excited about the merger and there has been constant work going on for the past few years.
What Investors can Invest in Ethereum Merge?
Once Ethereum shifts to the POS model, it will be more scalable. Also, the transaction speed would be quite high and consume less electricity. Investors would wait shorter for transaction validation and pay fewer gas fees than presently.
With three Successful Ethereum Merges on the testnet, The Ethereum community has gained some confidence, that the final merge to the mainnet would be quite successful and seamless. It’s hard to tell if the transition will be smooth due to the ongoing crypto winter. But on the technical side, these past two merges have worked quite great and they have been successful merges.
Ethereum Switch does not come risk-free. There are a lot of billion dollars stored on the existing smart contracts that are now under stake. Although there won’t be any damage to the contracts on a high level. The Ethereum Proof of Stake Consensus Algorithm’s success is doubtful because POS chains aren’t as reliable as POW networks.