On the 15th of September, with the successful integration of the Ethereum merge, Vitalik, one of the co-founders of Ethereum, described the transition as a massive moment for Ethereum.
Hours ago, the merge successfully transitioned Ethereum’s PoW to PoS. The Ethereum network upgrade significantly changes how the blockchain protects its ecosystem and validates operations. Developers have every right to be ecstatic because the merge was flawlessly executed, which is an incredible technical accomplishment. Overall, it is an upgrade that promises growth in valuation.
The Ethereum platform currently supports tens of billions of dollars in valuation of virtual currencies, applications, and DeFi, and none of them appears to have been negatively impacted by the platform’s switch to PoS.
ETH made this brilliant decision following problems emanating from its previous PoW model. Ethereum’s mainnet suffered difficulties; it was very problematic to mine ETH.
Further, the creation of ETH and the validation of operations on the Ethereum network have been fundamentally altered by the upgrade. Before the integration, ETH was produced through “mining,” an energy-demanding method in which users focused a lot of computer resources on tough challenges.
Via the PoS mechanism, people and organizations pledge significant sums of their current ETH and create new ETH. With the PoS model, ‘miners out, validators in.’ It is projected that the shift will be more rapid, scalable, and ecologically benign by over 99%.
Long-time fans of the PoS model can now get their hands on the massive Ethereum platform. Transactions are fast, do not demand energy, and therefore make Ethereum more scalable. Scalability will increase Ethereum’s adoption. While valuation has gone down a bit since the integration of “Merge,” its adoption will increase in the coming weeks, and in turn, valuation should follow suit.