The Ethereum (ETH) Merge that transitions the cryptocurrency to a more energy efficient proof-of-stake protocol has been completed and is now live.
Industry experts are calling the Ethereum upgrade a revolution for the entire cryptocurrency sector. The switch to a proof-of-stake operating model is expected to cut the energy used to secure new Ethereum tokens by more than 99%.
Cryptocurrencies such as Ethereum and Bitcoin (BTC) are criticized for the process of mining that generates new coins. Before the merge, both blockchains relied on miners all over the world that use specialized, energy intensive computers to validate transactions through a protocol called proof-of-work.
But with the upgrade, Ethereum has migrated to a system known as proof-of-stake, which swaps out miners for validators. Instead of running large banks of computers, validators leverage their existing cache of Ethereum to verify transactions and produce new tokens.
This requires far less power than cryptocurrency mining and industry observers say the new protocol makes Ethereum more secure and sustainable.
The price of Ethereum rose to about $1,640 U.S., up more than 3%, on news that the upgrade had been completed. Year-to-date, Ethereum’s price is down 58%.
