What is the Ethereum Merge? Why merge?

Ethereum merger refers to the transition of the Ethereum network from a proof-of-work consensus mechanism to a proof-of-stake mechanism, aiming to improve security, scalability and energy saving. Reasons include: security (PoS is more secure than PoW), scalability (PoS is more scalable than PoW), energy saving (PoS is more energy efficient than PoW). After the merger, ETH holders can stake ETH to earn rewards, the price of ETH may rise, and ETH will be accepted by more exchanges and institutions.

What is the Ethereum Merge (The Merge)

The Ethereum Merge refers to the transition of the Ethereum network from the Proof of Work (PoW) consensus mechanism to the Proof of Stake (PoS) consensus mechanism. This is a major technical upgrade designed to improve the security, scalability and energy efficiency of the Ethereum network.

Why Merge

The main reasons for Ethereum merging are:

• Security: PoS consensus mechanism is more secure than PoW because it does not require miners to run energy-consuming mining equipment to verify transactions. Validators use their ETH holdings as collateral to ensure the integrity of the network.
• Scalability: PoS is more scalable than PoW. Since miners are not required, PoS transactions can be verified in less time, thus increasing the throughput of the network.
• Energy Saving: PoW is an energy-intensive process, while PoS is not. The merger will significantly reduce the energy consumption of the Ethereum network, making it a greener blockchain.

Potential Impact of the Merger

After the merger, the following changes are expected to occur in the Ethereum network:

• Staking: ETH holders can stake their ETH to validators to earn staking rewards.
• Prediction: The merger is likely to have a positive impact on the price of ETH as the network becomes more secure, scalable, and energy efficient.
• Online exchanges: After the merger, it is expected that ETH will be accepted by more exchanges and institutions, improving its liquidity and accessibility.

About ETH

Ethereum (ETH) is a revolutionary cryptocurrency that occupies an important position in the global digital asset market. As of 11 a.m. on July 3, 2024, the live price of ETH was $3,348.80, with daily trading volume reaching $103.2 billion.

ETH has a circulating supply of 120 million coins and a total supply of 120 million coins, making it one of the most liquid assets in the blockchain industry. Its market capitalization is $4,025 billion, underscoring its massive appeal.

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