Ethereum 2.0 is on the horizon after passing another test
- on Aug 11, 2022
Key points to remember
- Ethereum is about to transition from the Proof-of-Work (PoW) model to the Proof-of-Stake (PoS) model.
- The network’s third and final testnet, Goerli, successfully transitioned to PoS on August 11, 2022.
- Ether rose 14% in 24 hours after the announcement of the successful final merger.
To move from Proof-of-Work (PoW) to Proof-of-Stake (PoS), Ethereum has finalized the third (and final) testnet merger, Goerli. In the world of cryptocurrency, a testnet is a test network designed to experiment with various blockchain improvements without harming the mainnet.
Through the transition to the PoS model, the Ethereum blockchain is expected to achieve greater scalability and improve its environmental sustainability by eliminating the energy-intensive PoW crypto mining process. In other words, PoS will speed up crypto mining, which is a process of creating new coins and verifying crypto transactions.
Following the news, Ether, the native token of Ethereum, jumped 14% in 24 hours.
Ethereum is getting closer to the point of sale
Ethereum will move from an energy-intensive proof-of-work system to a more environmentally friendly proof-of-stake system. This change is known as the “Merger” and Ethereum’s tentative merger date is set for September 19, 2022. The transition is expected to increase the network’s scalability and make it 99% more environmentally friendly.
The Goerli testnet merger was the last litmus test for Ethereum before it moved to the proof-of-stake consensus mechanism. The successful rehearsal generated excitement in the Ethereum community, especially among leading developers like Vitalik Buterin. Before this merger, Ropsten and Sepolia, the two mergers before this one, had been largely successful. Both events took place earlier this year in June and July.
Which investors will get from the merger?
After switching to the PoS model, Ethereum will be more scalable. Its transaction speed will be improved and its power consumption will also be reduced. As a result, investors won’t have to wait long for their trades to be verified and won’t have to pay high gas fees.
With three successful testnet mergers, the crypto community has gained confidence that the transition to mainnet will be successful. However, it remains to be seen whether a smooth transition to PoS will end the crypto winter.