On Monday (July 18), a popular crypto mentioned three significant benefits of “The Merge”, which is when the Ethereum network is making the transition from proof-of-work to proof-of-stake.
Here is how Ethereum Foundation explains The Merge:
“It’s important to remember that initially, the Beacon Chain shipped separately from Mainnet – the chain we use today. Ethereum Mainnet continues to be secured by proof-of-work, even while the Beacon Chain runs in parallel using proof-of-stake. The Merge is when these two systems finally come together.
“Imagine Ethereum is a space ship that isn’t quite ready for an interstellar voyage. With the Beacon Chain the community has built a new engine and a hardened hull. When it’s time, the current ship will dock with this new system, merging into one ship, ready to put in some serious lightyears and take on the universe.
“When ready, Ethereum Mainnet will ‘merge’ with the Beacon Chain, becoming its own shard which uses proof-of-stake instead of proof-of-work. Mainnet will bring the ability to run smart contracts into the proof-of-stake system, plus the full history and current state of Ethereum, to ensure that the transition is smooth for all ETH holders and users.“
On July 14, the “Ethereum Beacon Chain community health consultant” announced the provisional date for mainnet Merge:
Anyway, yesterday, Twitter user “@econoar” (who identifies an Ethereum maximalist) had the following to say to his over 141K followers about the main benefits of The Merge:
“In ~2 months from now Ethereum and ETH will completely transform for the better: -ETHs issuance will drop from +3.7% a year to -0.5% -Tx fees and MEV will be added to stakers yield, boosted it well above the current 5% -Ethereum will reduce network energy usage by 99.99%“
According to data by TradingView, on Coinbase, $ETH is currently (as of 12:29 p.m. UTC on July 19) trading around $1543.54.