Ethereum Proof of stake is here! We waited, kept our fingers crossed and hoped that all things will go according to plan. Well! Congrats everyone Ethereum Beacon chain has merged with the Mainnet (the execution side of things).
Ethereum Proof of Stake
It has been a long wait for the merge to happen with motions set in place as late as December 2021, when the Beacon chain was launched to test run what Ethereum as proof of stake blockchain would look like. Bugs after bugs were fixed, implementation and further advancing were carried out until it was proven that Ethereum could transition and upgrade to POS consensus mechanism blockchain.
This meant a lot of things to everyone, to the Dev community who have been working their a** off night and day, it was a success. Result to work put in for a more robust and powerful blockchain. But they are not resting, its just a phase that they have moved on from on to bigger improvements.
A new era has begun for the Ethereum community, it is just the beginning to a better Defi Ecosystem, for Non Fungible Tokens (NFTs), Metaverse spaces and Cryptocurrency Ecosystem in general.
What the Merge Brings
Ethereum Proof of Stake is the real paradigm as it makes Ethereum a more efficient blockchain. Vitalik the founder of Ethereum tweeted:
The Mining business of over on Ethereum as a lot of Miners will transition to become validators now. This makes room anyone and everyone to easily afford helping secure the network, unlike when it was on the POW side of things, an average enthusiast could hardly participate because of high electricity cost and huge mining rig setup cost.
This Merge and transitioning to Proof of stake make Ethereum an Eco-friendly coin as it drops world electricity usage by 0.25% with ~99.95% less energy consumed. It also reduces the production of ethereum very seriously and makes ethereum more deflationary.
For traders and investors, there is a bullish bias that comes with the merge. There are chances that as ethereum becomes more deflationary due to a 90% cut in $ETH issuance the price is likely to hit new highs. Even though we are in a bear market, hopes are running high as they anticipate better days for the coins price.
Most exchanges and Various Defi Protocols halted or suspended deposits and withdrawals of ethereum prior to the merge, they are beginning to resume business and operations as usual following a largely successful upgrade to ethereum Proof of stake.