Ethereum has successfully "merged" from Proof-of-Work to Proof-of-Stake. The landmark update will bring major changes to the Ethereum network, including a 99.95% reduction in energy
consumption and a 90% cut in ETH issuance. Many believe that the Merge could act as a bullish catalyst for ETH on a long-term timeframe, but there are reasons to be skeptical in the immediate future.
“The Merge” is one of the most significant events in crypto history. Ethereum has completed its transition to Proof-of-Stake.
The world’s second-biggest blockchain launched its long-awaited “Merge” update early Thursday, moving the network from a Proof-of-Work to Proof-of-Stake consensus algorithm.
Ethereum developers celebrated the upgrade alongside other prominent community members with a live streaming party; over 40,000 people tuned in to watch as the Merge shipped.
Ethereum co-founder Vitalik Buterin marked the event on Twitter, saying it was “a big moment for the Ethereum ecosystem. Ethereum switched to Proof-of-Stake when the network’s Total
Terminal Difficulty threshold, a measure that determines the difficulty of mining Ethereum blocks, hit 58750000000000000000000 early Thursday. The update, known as Paris, followed
last week’s Bellatrix upgrade in which Ethereum prepared its consensus layer for the main event. The switch saw Ethereum’s Proof-of-Work mainnet “merge” with its Proof-of-Stake Beacon Chain it’s been
described as the equivalent of an airplane changing its engine mid-flight. With today’s switch, Ethereum will now rely on validators staking ETH to achieve consensus and secure the network.