Home Ethereum September 14 could be the biggest day in internet history

September 14 could be the biggest day in internet history

September 14 could be the biggest day in internet history

Merger has been a hot topic of conversation within the Ethereum ecosystem for years. The third revision of the original Ethereum whitepaper included references to proof-of-stake in 2014. Vitalik Buterin added references to PoS, stating that PoW and PoS can “serve as the backbone of a cryptocurrency.”

“The mechanism behind proof-of-work was a breakthrough in space…an alternative approach has been proposed called proof-of-stake, calculating the weight of a node as proportional to its currency holdings and not the resources of calculation…it should be noted that both approaches can be used to serve as the backbone of a cryptocurrency.

Also, later in the article, Vitalik added, “in the future, it is likely that Ethereum will transition to a proof-of-stake model for security.” It’s been almost nine years since the white paper was published, and the move to PoS has yet to materialize.

September 14, 2022

However, as many already know, it is now officially scheduled for September 2022. Specifically, an Ethereum developer has now calculated that the block height of the project will be reached at 22:57 CEST+2 on September 14. This date may drop. recorded as the most important day in internet history.

The merger is significant not only because it is the culmination of years of work by the Ethereum developer community, but also because it cements Ethereum as one of the most critical building blocks for the future. Internet. It improves security while reducing its energy production, making it a viable mechanism for companies with ESG requirements.

An Ethereum PoS silences the misguided narrative that PoW is bad for the environment while reducing Ethereum emissions by 90%. Ethereum inflation currently sits at 4.3%; this will drop to around 0.4% after the merger, while major fiat currencies are currently recording 40-year highs.

With The Merge less than a month away, it’s the main topic of conversation for many key players in the space. Ethereum also outperforms Bitcoin, climbing 62% from its July local low.

Oil change at 30,000 feet

Merge has to be one of the most technically advanced coding upgrades in internet history. Ethereum hosts over 500,000 ERC20 tokens according to in chain data, which means that half a million projects rely on Ethereum to settle transactions within their ecosystem. There are also approximately 4,000 dApps on Ethereum and more 500k active addresses.

The entire network will be merged into the Beacon Chain, changing its consensus mechanism, while continuing to produce blocks. There will be no downtimeand all applications will continue to run throughout the upgrade.

Many Web 2.0 applications require servers to be restarted or put into “maintenance mode” when major updates are made. Ethereum has no such luxury; The merger will occur as the network continues to grow.

Triple Halving

Once successfully merged, the new PoS version of Ethereum will have undergone what is commonly referred to as a “triple halving”. Bitcoin undergoes a halving approximately every four years, resulting in a halving of Bitcoin issuance. The effect is often thought to be the start of the next crypto bull run.

When Ethereum moves to point of sale, it will issue 90% less ETH, comparable to three halves in one block. On PoW, Ethereum issues 13,000 ETH per day; under a PoS consensus mechanism, it will only print 1.6k per day.

Unlike Bitcoin, which is often referred to as “digital gold” and a “store of value”, Ethereum is a decentralized virtual computer known as the Ethereum Virtual Machine. It enables automated, incentive and programmable smart contracts to interact and open the door to applications not possible in Web 2.0.

The venture capital perspective

Fred Wilsonthe prominent VC of Union Square Ventures, published a blog post Monday focusing on The Merge and what it means for crypto. Wilson made three main points for The Merge; the reduction of the carbon footprint, the modification of the supply/demand ratio of Ethereum and its increased security.

Wilson also pointed to the possibility of a PoW fork surfacing after The Merge. It does not, however, make any predictions as to the expected impact this will have on the ecosystem.

“ETH POW, could grow a community around it and live and bring value to developers… ETH POW tokens could be worthless over time or be worth a lot over time. There is really no way of knowing how ETH POW will grow.

Regardless of the potential for fallout from the launch of an ETH PoW token, Wilson believes that “the merger is probably the most significant change a large-scale blockchain has ever undergone.”

The future of the internet

Web3 is now a common term in technology, but it has yet to be adopted by the general public. Ethereum may have been held back in its adoption with a major upgrade weighing on its development. Once the Beacon Chain is implemented on the mainnet, the future roadmap will be much simpler, allowing projects to launch on Ethereum without fear of The Merge failing.

If web3 were to be adopted by the general public and become part of our daily lives, it is clear that Ethereum will be a major element. Whereas layer 2 solutions will likely facilitate most transactions, Ethereum will continue to act as the settlement layer for much of the web3. September 14, 2022 could go down in history as the true birth of web3, or if The Merge fails, it could be its downfall. Here at CryptoSlate, we’ll be glued to our monitors watching this historic moment unfold for sure.


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