Ethereum Merge. Here’s what you need to know.
You may have heard about the upcoming event involving the Ethereurm network dubbed ‘The Merge.’ Because this is genuinely one of the most significant events in the history of crypto it’s well worth taking a few moments to understand it. Here’s what you need to know:
Ethereum (ETH) is the second largest cryptocurrency by market cap and came into being in 2013 specifically for creating smart contracts. Founded by Vitalik Buterin since being introduced to the world by a white paper in 2014, Ethereum has revolutionized the industry by radically transforming how we interact, conduct and enforce agreements. Smart contracts are tools that can automatically execute transactions if certain conditions are met without requiring the help of an intermediary company or entity. Thousands of Dacxi clients own the Ethereum cryptocurrency and are realizing its potential to increase their wealth.
The long delayed upgrade to the Ethereum blockchain is currently planned to occur on the 15th of September where the Ethereum blockchain moves to a ‘Proof of Stake’ consensus and if it’s successful the blockchain’s massive electricity requirements will fall by over 99%. Because so much of the future blockchain world will be driven by Ethereum, the success of the ‘Merge’ is crucial particularly as society’s highest priority, the carbon emissions of Bitcoin and Ethereum are too conspicuous to ignore.
What will happen to ETH prices?
ETH prices have increased by over 80% in the past two months from a 12 month-low. The reason for this rapid recovery given by many market commentators is ‘The Merge’ which at its core improves the performance of the network enabling many more users.
While the price increase is encouraging, it is important to qualify that the price increases with any crypto are impossible to predict. The transitioning of the technology to a less energy-intensive version could signal volatility in the markets. However, in reality, many are just waiting to see how investors and companies building their tech on the Ethereum platform respond to all the changes.
The price of Ethereum reached its peak in late 2021 and then began to drop, alongside the rest of the financial markets — including stock and metals markets. Trading experts believed that US$20,000 on Bitcoin and US$1,000 on Ether would be the big “floors” on prices, so far they seem to be correct.
The switch from Proof-of-Work (PoW) to Proof-of-Stake (PoS) is the key to Ethereum’s continued ability to drive the tokenization revolution first predicted at the world’s first Token Summit on Ethereum in New York in May 2017. Dacxi’s vision for using tokenized assets to build wealth and enable a global tokenized crowdfunding network — the Dacxi Chain — started then.
We’ve learned from past events that the price of ETH will either rise or fall on the day of The Merge. Everyone seems to have an opinion about this; Dacxi’s view is that The Merge will be good for the future of Ethereum and help accelerate its value.