Ethereum Merge May Help Provide Positive Public View Of Crypto
Ethereum Merge May Help Provide Positive Public View Of Crypto.
Journalist and author, Laura Shin believes that the huge update that is coming to Ethereum, The Merge, may change the public’s negative view of crypto in general, in an interview on CoinDesk TV’s “First Mover” program.
The Merge is change of Ethereum’s proof-of-work to proof-of-stake mechanism. It eliminates the need for energy-intensive mining and instead secures the network using staked ETH. In a step to realize Ethereum vision of more scalability, security, and sustainability.
A Centralized Ethereum?
Even though this will help in providing a better view on crypto, Shin said that many users are concerned it will lead Ethereum to become centralized. Which means that liquid staking pool providers such as Lido dan Coinbase will have a bigger role in how Ethereum is run.
This many raise many concerns about the on-chain governance if platforms like Lido could take “80% of all the staked ether.”
Shin also said that if the Merge is successful, it may see many Ethereum rivals to die down and hard to see other network do well. However, many also believe that networks such as Cardano will prosper due to their own update Vasil hard fork.
“A lot of blockchain network effects really depend on perception around the individuals involved,” Shin said. “That will only be strengthened if the Ethereum Merge is successful.”
Positive Impact On Environment
Currently, The Merge is scheduled to happen between 10 and 20 September 2022. Many predict that this huge update will greatly reduce the enery used by Ethereum by 99% and may impact the price of crypto in the market.
Many people see that one of the biggest flaw of crypto is their impact on the environment. The current proof-of-work mechanism is energy-intensive which means that it will leave a big amount of carbon footprint. Changing this to a proof-of-stake, is said to greatly reduced this energy intensive mechanism.
Shin said in the interview that many still view crypto as a “high environmental costs to maintaining proof-of-work blockchains” and changing this perspective will be a positive step forward for the industry.
Related: Why Many Analysts Predict Cardano (ADA) & Altcoins Will Rally In September
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