The much-awaited mega upgrade for the world's most popular blockchain platform, Ethereum, is happening finally.
Called the Merge, the software upgrade has been in the works for years, and it will change the way Ethereum orders transactions. Instead of using energy-guzzling computers called miners, the network will deploy so-called validators using staked Ether tokens -- a setup called proof of stake.
Cheaper to mine
If ethereum's creators succeed, as is largely expected, it could be a game-changer for the blockchain, making it cheaper to mine and easy to adopt for fintech and other crypto apps.
The Merge is also fraught with risk, and the fortunes of the roughly 122 million ether in circulation, worth about $232 billion, could be at stake should it fail.
What's the change?
The Ethereum blockchain currently uses the energy-intensive proof-of work (PoW) method of validating blocks, wherein miners use massive amounts of power to quickly solve complex computational problems to win newly minted coins.
On a parallel chain, Ethereum has been testing a proof-of-stake (PoS) system that only requires miners to "stake" their coins to validate transactions and create new blocks. It promises 99.95% reduction in the blockhain's energy consumption and prepares it for faster transactions.
Release date
The core developers working on the much-anticipated software upgrade firmed up Sept. 15 as the likely official date of the so-called Merge.
(With inputs from Reuters and Bloomberg)
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