The much talked about Polygon MATIC cryptocurrency platform is directed and discussed to provide a thorough guide to this relatively new kid on the block
Most of you will already know that the Ethernet Mainnet will soon merge with the Beacon proof-of-stake system. It has always been the intention of Ethereum to move to a total proof-of-stake system, and soon it will become a reality. The transition will reduce Ethereum's energy consumption by a massive 99.5%. This reduction is caused by eliminating large-scale mining and the move to stake Eth security.
There is no doubt that the existing proof-of-work architecture is secure, but it is seen as being inefficient. The energy-expensive mining means it takes a long time to validate new data blocks. Ethereum is still the largest platform for smart contract users, but rivals are closing in. The Merge will eradicate what are seen as negatives by many people.
The Merge will be the most significant upgrade to the Ethereum system in its history. The Ethernet Mainnet has held all transactions, smart contracts, and the balance of Eth since it began in 2015. The aim always was to move away from proof-of-work. The Beacon chain was created in December 2020 and has run parallel to and separate from Mainnet.
The Beacon Chain has not processed any of Mainnet's transactions. After it reaches consensus, Beacon Chain will become the consensus engine for all the data on the network. After the Merge, mining will cease to be the means of block production. The extensive testing process is now in its final stages, and eight years after initial discussions, the Merge will happen on or around September 15th.
There has been an upswing in crypto investment over the last few years. The overall market value doubled in 2021 before collapsing to where it currently stands. Investors holding Ethereum or any other cryptocurrency will not have to do anything after the Merge takes place.
The Ethereum Merge will involve an incredible technological achievement. But, if all goes well, it should see nothing but positives for crypto. Alex Tapscott, managing director of Ninepoint Partners' digital asset group, says, "A successful merge will likely boost the price of all crypto assets," especially Ether and other associated projects. But bitcoin prices could also rise as investors gain more confidence in the asset class."
After the recent successful merge test, Ether was at the forefront of a general surge in the value of digital assets. In one single day, the value of all cryptocurrencies went up by over $70 billion to a total of $1.2 trillion. This is still way below the November 2021 peak of $3 trillion. However, it is a promising move in the right direction.
Experts are seeing mainly positives. While this won't be a get-rich-quick event, the long-term future looks more solid.
Speaking of the Merge, Katie Talati, the director of research at investment firm Arca says, "This is an event that a lot of people are undercounting, especially based on current price appreciation. We're gonna look back on this in a year from now and realize we were at the market bottom there."
If, as expected, the Merge is successful, it will reduce the issuance of new Ether. According to Blockchain intelligence firm IntoTheBlock's head of research, Lucas Outumuro, "ETH's net issuance is now projected to range between 1.5% to 0.5% based on the last three months of data, compared to 4.5% to 0.5% using Q1 to Q2 numbers,"
According to bankrate.com, the post Merge protocol will bring new benefits. For example, the system should be more robust and efficient and deliver better scalability. In addition, they expect Ethereum token values to increase, which will all happen in the background, meaning investors need to do nothing to participate.
The general outlook is very positive. Most experts see the Ethereum Merge as an essential thing. Old problems should be ironed out and a more streamlined system achieved. Ether traded between $1500 and $2000 during the last week. This represents a staggering ROI of 700,000% since its beginning.
Many experts predict Ether to hit $4000 by the end of the year. While it is still volatile, all the indications are good. It is, however, worth mentioning that all cryptocurrencies are volatile. Therefore, investors should only invest what they are prepared to lose. The risks are real, but for many, they are very worthwhile.
As part of our ongoing mission to help educate the world about cryptocurrency, nonfungible tokens, and everything blockchain, we publish regular blogs, guides, and how-tos that inspire and inform. You can stay up-to-date by checking in weekly to read new content or follow us on Twitter!
The much talked about Polygon MATIC cryptocurrency platform is directed and discussed to provide a thorough guide to this relatively new kid on the block
The ultimate guide to Bitcoin, its place in the cryptocurrency world, and how you can get involved should you wish. A comprehensive look at Bitcoin.