‘The Merge’ has happened: Ethereum is now 99% cleaner and miners are massively bankrupt

It was a squeeze for the ethereum holders of all countries: chief executive Vitalik Butherin was going to update the software and if it failed, $200 billion would have gone up in smoke.

In the new system, the network is no longer held together by proof of work (the calculation of coins by many different computers) but proof of stake . This more or less means that the network is supported by the owners of the coin. Their portfolio serves as a kind of collateral and a lottery will soon determine who can compete for profit from coin creation. Because there are fewer parties. working, this also results in less pollution.

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The operation, likened by Butherin to “changing an aircraft engine in flight,” generated quite a bit of tension. Ethereum is worth about $200 billion and if it went wrong, that money might have gone up in smoke. But fortunately:

Critics, on the other hand, do point to the disappearance of the decentralized model, which ethereum (and crypto in general) so proud of itself. In the new model, the fat profits end up much more with the parties that already have their pockets full of ethereum.

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Bad news for the miners

The Merge is probably very bad news for the miners, who have raked in giga profits in recent years by calculating the coins together with steaming servers. That mining is basically a kind of race of servers against each other, where the fastest computer wins and takes the cake. And the fastest computer is simply the server that runs the fastest and longest and therefore consumes the most energy (in short: the most polluting).

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End of exercise: there is a good chance that many servers for rock bottom prices will soon be available.

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