Omd Cialis

My WordPress Blog

Ethereum’s merger highlights a key strength, says Coinbase executive – The Motley Fool Australia | Omd Cialis

The word Ethereum written on a blue and black circle.

Image source: Getty Images

This article was originally published on Fool.com. All figures are in US dollars unless otherwise noted.

A coin base (NASDAQ:COIN) Executive just explained the best part of the long-awaited ether (CRYPT: ETH) merge. Coinbase COO Emilie Choi pointed to Ethereum’s most exciting strength — and how the platform upgrade is putting that quality in the spotlight.

The merger is now on the books, and cryptocurrency investors should keep an eye on how Ethereum is making its move from a Proof-of-Work (PoW) platform to a Proof-of-Stake (PoS) system. For Choi, the journey is more important than the destination.

What is The Merge?

Around 2:40 a.m. ET Thursday, Ethereum began merging its digital ledger with a new system that used to run as a test network called the Beacon Chain. Ethereum blockchain node developers and operators had performed a few mergers on smaller testnets, and all signs pointed to a successful platform upgrade on the main Ethereum network.

As expected, The Merge went smoothly. Leading crypto trading platforms like Coinbase, Kraken, Binance and Robinhood Markets Transactions for Ethereum and Ether-based tokens paused for a few hours to give the technology update time to roll out. Today, Ethereum’s transactions are validated by a much faster system that uses just 0.05% of the electrical energy that the old PoW platform consumed.

This groundbreaking move has been in the works for six years and also sets the stage for three more rounds of major network upgrades. Ethereum co-founder Vitalik Buterin believes that Ethereum’s functionality is 55% complete after The Merge, leaving plenty of room for further improvement.

What Choi said

This is where Emilie Choi comes in. Choi provided this crucial insight at the annual Goldman Sachs Communacopia + Technology Conference earlier this week:

“I think the most important thing is that [The Merge] represents that there can be continuous and sustained technological development carried out by decentralized communities at scale,” she said. “For me, this is the most important finding from the Ethereum merger.”

This is important. Like Buterin, Choi expects Ethereum to get better over time. This platform was built with long-term flexibility in mind, allowing Ethereum to overcome expected challenges and unknown surprises through platform updates. The Merge was a fantastic example of this ability, proving that the network can truly see fundamental changes without breaking the crypto platform.

The next updates will further reduce transaction costs and increase execution speed. They will also introduce a worksharing feature called sharding, improve Ethereum’s security model, and expand the system’s scalability. In the long term, Ethereum will evolve to take advantage of improvements in computing systems. For example, by 2030, the Ethereum network could secure and validate its transactions using quantum computing systems.

What’s good for the Ethereum goose may not be right for the Bitcoin goose

Every cryptocurrency does have some capacity for platform upgrades, but the Ethereum community takes this quality more seriously than most of its peers. Bitcoin (CRYPT: BTC) has changed little since its inception in 2009, save for a few tweaks to address unexpected security issues. Bitcoin’s immutability is an advantage as its holders can be confident that the long-term supply is capped at 21 million coins.

However, the largest cryptocurrency should probably consider switching from PoW to PoS (or another validation system with lower computational and power requirements) one day. This change required years of planning and testing in the more flexible Ethereum community. Will we see a proof-of-stake version of Bitcoin this decade? Probably not.

So, the two leading crypto names are strikingly different paths. One size doesn’t fit all cryptocurrencies, and that’s totally fine. Each digital coin is designed with unique features and long-term goals, and these fundamental differences will always drive its evolution. In the case of Ethereum, openness to new ideas is the name of the game, and investors should embrace that mindset.

The merger has shown us that even ambitious platform changes can be carried out without any problems. As Choi said – and Buterin would certainly agree – sustainable development is the secret ingredient in Ethereum’s recipe for success.

This article was originally published on Fool.com. All figures are in US dollars unless otherwise noted.

Updated: September 17, 2022 — 1:32 am

Leave a Reply

Your email address will not be published.

Omd Cialis © 2022 Frontier Theme