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It’s currently the week of The Merge , the week that Ethereum will eventually move from PoW to PoS. The Ethereum platform says that The Merge will be the most significant upgrade in Ethereum’s history. The move to PoS will replace energy-intensive mining and instead secure the network with staking ETH. Aditya Das joins Andy to discuss all things related to this highly anticipated event.
The Merge represented the combination or ‘consolidation‘ of the execution layer, Ethereum as we know it today, with a consensus layer known as the Beacon chain. Beacon chains using a Proof-Of-Stake (PoS) consensus model will replace the current Proof-of-work (PoW) model that the Mainnet currently uses. The move to PoS will replace energy-intensive mining and instead secure the network with staking ETH.
The merge is set to cut Ethereum’s emissions rate by 90% (according to some analysts). PoS makes network security much cheaper than Proof-of-Work because PoS validators are paid much less than PoW operators. Calculations from some analysts suggest that the rate of Inflation cuts to Ethereum would be equivalent to “three bitcoin halvings” – Bitcoin halvings.
Bitcoin bulls often tout the halving as a strong bullish driver and will focus on investing for about 4 years. If the bulls are right then Ethereum’s PoS transition will cause the halvings cycle to last 12 years.
