Why is Proof-of-Stake so different after all? In PoS, the mainnet will use so-called validators to process transactions, which means there will not be the conventional Ethereum “mining” anymore.
To be a network validator, one must use a corresponding software and make a deposit, i.e. “stake” 32 ETH on the network. Once the deposit is made, an applicant will join the activation queue the purpose of which is to filter the new network validators. Should a validator be activated, they can review and approve incoming Ethereum network transactions. As the reward for transaction management, validators are rewarded with Ethereum cryptocurrency.
Preston Van Loon, the Ethereum core developer, claims that shifting from Proof-of-Work to Proof-of-Stake will reduce Ethereum energy consumption by 99.9% or even more, causing a lot of joy among the community.
Why is the Merge so game-changing?
Besides being the second-largest cryptocurrency on the market with $192.7 billion market cap, Ethereum network also accommodates dApps (decentralized applications) and DeFi (decentralized finance) protocols, thus determining the authenticity of almost all NFTs (non-fungible tokens).
As a result, the Merge will affect not just the Ethereum network, but a whole bunch of different products and services it hosts.
Another positive outcome is the reduction of new ETH issuance, making it the most prominent deflationary cryptocurrency. To become a validator, a significant amount of money is required, so it means more quality participants in the network life.
By Vitalik Buterin, the Merge is regarded as a vital step in the Ethereum entire development. As of today, the network is completed by 40%, and after the Merge, Ethereum will be improved to being 55% complete. Naturally, it is not the end for the Etherum story.
What Will Happen
· The Beacon Chain will be activated on Sept. 6. The Merge process will be set.
· After this, the Terminal Total Difficulty (TTD) value will be 58,750,000,000,000,000,000,000. This must be expected between Sept. 10 and Sept. 20.
· The PoW mining difficulty will increase to the point where it will be impossible to mine new coins.
Hail to Proof-of-stake!
If you hold any Ethereum and don’t plan to sell it until September 6, loosen up – you won’t need to do anything with your assets. The funds will still be accessible after the Merge, at its full capacity. All we’ve got to do is sit and wait for the most important moment in crypto history to happen.
There’s more good news for you. You can accumulate your Ethereum and earn crypto interest for simply holding it on a Neosify wallet. 36.5% APY paid out daily is a good start to boost your crypto savings and be prepared for the Merge, as there is a certain price volatility to be expected. Shield any crypto of your choice and take advantage of the bear market. Only on Neosify.
