Crypto

‘Historic’ Moment as Ethereum Merge Cuts Crypto’s Carbon Emissions by 99%

One of the most anticipated moments in crypto history has finally happened after years of building.

At 7:45 a.m. BST on Thursday, Ethereum completed what has been dubbed “The Merge.” In doing so, the power consumption of the world’s second largest cryptocurrency dropped by more than 99% in an instant.

“After the publication of the Bitcoin white paper, the Ethereum merger is the most significant event in crypto history,” tweeted Erik Voorhees, founder of popular crypto platform ShapeShift.

The Ethereum merger involved a complex network transition from proof-of-work – a technology pioneered by Bitcoin – to proof-of-stake, which means that large amounts of computing power are no longer required to support transactions and mints new units of the cryptocurrency.

Before the merger, Ethereum’s electricity needs were equivalent to those of a small country, which raised environmental concerns about partial reliance on fossil fuels to support its network.

Crypto advocates now hope Ethereum will face fewer regulatory challenges and wider adoption as scrutiny shifts away from its environmental impact.

“The merger is an important step in bringing Ethereum into the mainstream, and it marks an evolution of blockchain technology,” Gilbert Verdian, CEO of blockchain company Quant.

“A smaller carbon footprint has long been an industry goal… Now that this is happening, we will see more institutional adoption where financial services will move towards decentralized infrastructure. It can offer secure transaction processing and secure at a fraction of the cost, compared to the huge expense and overhead of today’s infrastructure.

In the hours leading up to the change, the price of Ethereum (ETH) held steady as major exchanges temporarily suspended deposits and withdrawals of the cryptocurrency.

Other top cryptocurrencies like bitcoin (BTC) and Cardano (ADA) also saw little price movement, with the overall crypto market moving less than 1%.

It followed a major price drop on Wednesday, which wiped nearly $100 billion of market value and pushed it below $1 trillion amid fears there could be issues with the merger. Ethereum.

No major issues appear to be occurring, although the developers are continuing to assess whether all aspects of the event went as planned.

Ethereum co-founder Vitalik Buterin said earlier this year that the merger was just the first part of a multi-part plan to transform the cryptocurrency, with the next steps being called “the rise”. sudden, edge, purge and madness”. All aim to make Ethereum’s new proof-of-stake blockchain more scalable and secure.

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