{"id":1275,"date":"2022-09-08T11:55:37","date_gmt":"2022-09-08T11:55:37","guid":{"rendered":"https:\/\/digitalcoinprice.com\/blog\/?p=1275"},"modified":"2023-03-30T11:40:22","modified_gmt":"2023-03-30T11:40:22","slug":"the-ethereum-merge-how-can-it-affect","status":"publish","type":"post","link":"https:\/\/digitalcoinprice.com\/blog\/the-ethereum-merge-how-can-it-affect","title":{"rendered":"The Ethereum Merge: What is It, and How Can It Affect the Value of Ethereum?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-flat ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Content<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #223c50;color:#223c50\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #223c50;color:#223c50\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/digitalcoinprice.com\/blog\/the-ethereum-merge-how-can-it-affect\/#Whats_Ethereum_Merge\" title=\"What&#8217;s Ethereum Merge?\">What&#8217;s Ethereum Merge?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/digitalcoinprice.com\/blog\/the-ethereum-merge-how-can-it-affect\/#Ethereum_Has_More_Use_Cases_Than_Bitcoin\" title=\"Ethereum Has More Use Cases Than Bitcoin\">Ethereum Has More Use Cases Than Bitcoin<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/digitalcoinprice.com\/blog\/the-ethereum-merge-how-can-it-affect\/#Able_to_Make_Transactions_Faster\" title=\"Able to Make Transactions Faster\">Able to Make Transactions Faster<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/digitalcoinprice.com\/blog\/the-ethereum-merge-how-can-it-affect\/#Fewer_Gas_Prices\" title=\"Fewer Gas Prices\">Fewer Gas Prices<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/digitalcoinprice.com\/blog\/the-ethereum-merge-how-can-it-affect\/#Environmentally_Friendly_and_Energy-efficient_Mining\" title=\"Environmentally Friendly and Energy-efficient Mining\">Environmentally Friendly and Energy-efficient Mining<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/digitalcoinprice.com\/blog\/the-ethereum-merge-how-can-it-affect\/#More_Decentralized_Oriented\" title=\"More Decentralized Oriented\">More Decentralized Oriented<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/digitalcoinprice.com\/blog\/the-ethereum-merge-how-can-it-affect\/#More_Accurate_Security_System\" title=\"More Accurate Security System\">More Accurate Security System<\/a><\/li><\/ul><\/nav><\/div>\n<p><span style=\"font-weight: 400;\">Ethereum merge is a technical upgradation. It will be moving from the existing Ethereum proof-of-work mechanism to an Ethereum proof-of-stake model. Ethereum hopes to significantly reduce its carbon footprint by making this move and laying the foundation for future scalability improvements.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>The Ethereum update, known as &#8216;The Merge&#8217;, is scheduled from 13 to September 15.\u00a0<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Currently, the ETH price is unstable and progressing steadily. It may pick ahead during the Merge in the mid of September.\u00a0\u00a0<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Ethereum 2.0 is faster and energy efficient, and it costs less.\u00a0<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">It has been proven that one single transaction using Bitcoin can utilize 160 storied Burj Khalifa. On the other hand, an Ethereum transaction also takes the energy required for the world&#8217;s tallest building Leaning Tower of Pisa.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Today, more than 20,000 cryptocurrencies are available globally, which consume electricity equal to a small country because crypto mining requires high computing power that needs tons of electricity.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ethereum 2.0 &#8216;Big Merge&#8217; solves this problem.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Whats_Ethereum_Merge\"><\/span>What&#8217;s Ethereum Merge?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The Ethereum (ETH) Merge is one of the most significant and influential upgrades in Ethereum history. The Merge represents the coalition of proof-of-stake agreement layers with the existing running layer of <\/span><a href=\"https:\/\/digitalcoinprice.com\/coins\/ethereum\"><b>Ethereum (ETH)<\/b><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In addition to energy efficiency, costs, and other efficiency aspects, this blockchain technology is known for executing smart contracts.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Merge can divide the Ethereum network into the peace of data blocks and more outstanding speed transactions in a sharding process. <\/span><b>Ethereum 2.0<\/b><span style=\"font-weight: 400;\"> is coming with a new blockchain, and experts say it is desired that the new blockchain will bring back the lost developers on the blockchain again.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Merge can divide the Ethereum network into the peace of data blocks and more outstanding speed transactions in a sharding process. Ethereum 2.0 is coming with a new blockchain, and that is a hope that experts lost on the blockchain.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Ethereum_Has_More_Use_Cases_Than_Bitcoin\"><\/span>Ethereum Has More Use Cases Than Bitcoin<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The Ether currency, Ethereum&#8217;s native currency, is surging in value as crypto enthusiasts and investors anticipate the &#8216;merge&#8217; in mid-September. Ethereum&#8217;s merger effects will increase the cryptocurrency&#8217;s demand.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a result, <\/span><a href=\"https:\/\/digitalcoinprice.com\/coins\/bitcoin\"><b>Bitcoin&#8217;s <\/b><\/a><span style=\"font-weight: 400;\">value has fallen 29% since July, according to DigitalCoinPrice, a website that tracks cryptocurrency assets worldwide. At $19,834, Bitcoin is still much more valuable than ETH.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Compared to <\/span><a href=\"https:\/\/digitalcoinprice.com\/coins\/bitcoin\"><b>Bitcoin<\/b><\/a><span style=\"font-weight: 400;\">, Ethereum has a broader range of uses since Bitcoin is a cryptocurrency solely used for financial transactions. A developer-centric metaverse platform called Lumos Labs, founded by Kaavya, calls Ethereum a blockchain with its native currency, Ether.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here, we know what the Merge means for crypto users.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Able_to_Make_Transactions_Faster\"><\/span>Able to Make Transactions Faster<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>ETH 2.0<\/b><span style=\"font-weight: 400;\"> will enable developers and crypto users to complete transactions faster by processing 100,000 transactions per second.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It will be faster and easier to access after sharding since it can fit in more transactions. Because more people can use it efficiently, <\/span><span style=\"font-weight: 400;\">the cost will decrease since economies of scale will be applied.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Fewer_Gas_Prices\"><\/span>Fewer Gas Prices<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The transaction fee on Ether can reach $100 per transaction, with Ethereum only capable of processing 30 transactions per second. Gas fees increase when there are fewer transactions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to Vitalik Buterin, the founder of Ethereum Network, throughput can fall as low as $0.02 post-rollups as throughput increases after the Merge.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Environmentally_Friendly_and_Energy-efficient_Mining\"><\/span>Environmentally Friendly and Energy-efficient Mining<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/digitalcoinprice.com\/blog\/the-ethereum-merge-interesting-facts\">An Ethereum 2.0 transaction consumes electricity<\/a> equivalent to about 20 minutes of television (35 watts), according to the Ethereum Foundation. A 99.95% reduction in energy consumption is Buterin&#8217;s goal.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Crypto transactions are initially validated or mined using high-powered computers that solve complex mathematical equations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Ethereum 2.0 protocol relies on no hardware or validators for verifying crypto transactions, which means it uses less energy.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"More_Decentralized_Oriented\"><\/span>More Decentralized Oriented<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Sharding divides <\/span><a href=\"https:\/\/digitalcoinprice.com\/coins\/ethereum\"><b>Ethereum (ETH) blockchain<\/b><\/a><span style=\"font-weight: 400;\"> into multiple data blocks that invite more creators to flock to <\/span><b>ETH 2.0<\/b><span style=\"font-weight: 400;\"> to do new business. Today, more <\/span><a href=\"https:\/\/digitalcoinprice.com\/\"><b>web3 <\/b><\/a><span style=\"font-weight: 400;\">projects have been done on the Ethereum blockchain.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a result, banking will become more customer-centric, and we will be able to redefine how digital payments are conducted without the involvement of third parties. Additionally, it aims to reduce the use of fiat money.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"More_Accurate_Security_System\"><\/span>More Accurate Security System<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">An 8-million dollar hack from Solana shows how vulnerable wallets are to hacking. It will be tough for hackers to attack Ethereum after the switch to proof-of-stake.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is highly energy-intensive for hackers to crack it, despite users consuming less power. Every validator on the network will have a traceable address.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/digitalcoinprice.com\/blog\/the-ethereum-merge-interesting-facts\">There is much hope for an Ethereum merge<\/a>, but it won&#8217;t produce an outcome instantly. It takes time. The process has to pass some more difficult stages first.\u00a0\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On July 22, At Ethereum Community Conference, Buterin said that Ethereum 2.0 would be ready only 55% after the merge event. It will be fully complete entirely in 2023.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ethereum merge is a technical upgradation. It will be moving from the existing Ethereum proof-of-work mechanism to an Ethereum proof-of-stake model. Ethereum hopes to significantly reduce its carbon footprint by making this move and laying the foundation for future scalability improvements. The Ethereum update, known as &#8216;The Merge&#8217;, is scheduled from 13 to September 15.\u00a0 [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":1276,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-1275","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis"],"_links":{"self":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/1275","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/comments?post=1275"}],"version-history":[{"count":8,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/1275\/revisions"}],"predecessor-version":[{"id":2638,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/1275\/revisions\/2638"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/media\/1276"}],"wp:attachment":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/media?parent=1275"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/categories?post=1275"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/tags?post=1275"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}