Idea Post

What is Merge?

Originally referred to as Ethereum 2.0, the merge is an upgraded version of the Ethereum blockchain that uses a proof-of-stake consensus mechanism to verify transactions via staking.

The staking mechanism Ethereum replaces the proof-of-work model where cryptocurrency miners use high-powered computers to complete complex mathematical functions known as hashes. The mining process requires an ever-increasing amount of electricity to verify Ethereum transactions before they are recorded on the public blockchain.

Proof-of work-systems devour a tremendous amount of electricity. Bitcoin mining, for example, currently consumes electricity at an annualized rate of 127 terawatt-hours (TWh). That’s now higher than the power consumption of the entire country of Norway.

With proof of work, Ethereum had an annual power consumption roughly equal to Finland, producing a carbon footprint similar to Switzerland. Post-merge, Ethereum is expected to reduce its carbon footprint by up to 99.95%, addressing one of the major criticisms of the cryptocurrency.

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    1. Ethereum's Transition to PoS

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    The proposed upgrade would see Ethereum move from its current PoW consensus algorithm to a PoS algorithm, which would be more energyefficient and require less computing power.

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