The NFT industry will be able to boast of using a clean Blockchain.
The Ethereum Merge is here and many debates have already been opened before its launch that will continue after its staggered launch. That Ethereum changes its consensus protocol to Proof-of-Stake (PoS) could be considered one of the most important events in the crypto universe, obviously, this brings with it a lot of speculation and misinformation, here we will deal with the events that will occur, and the consequences derived from such an experiment.
It is important to note that the decision of the developers to seek to change their original consensus protocol, Proof-of-Work (PoW), to the new PoS has been in the making for several years, with Beacon Chain, the Ethereum Blockchain branch responsible for using PoS, released on December 1, 2020,
for development and testing. In short, the developers have not responded to current events, but to what they think is best for the second highest valued Blockchain by capitalization.
It is indisputable that the transformation from PoW to PoS will cause notable changes in the perception of Ethereum as a network from different points of view: economic, environmental, tokenomics, competition with other cryptoactives, legal, centralization versus decentralization. Ultimately, the switch from Ethereum to PoS is a turning point for the Blockchain co-founded by Vitalik Buterin, as well as for the whole crypto community.
Ethereum Becomes a Sustainable Asset, while Bitcoin Stands Alone in Danger
One of the most notorious and visible aspects of establishing PoS as a consensus mechanism will be the radical reduction in the energy consumption that the Ethereum Blockchain will need.
Several studies conclude that Ethereum will consume 99.95% less electricity after the implementation of PoS through Merge compared to current use with PoW. This fact is impossible to ignore and in itself transforms the rhetoric about Ethereum as the opening it can be for investment in its Blockchain.
An immediate effect of the transformation will be how the media pressure will focus even more on Bitcoin due to the debate about the supposed environmental damage it causes. This fact will reassure investors that due to the use of PoW they did not dare to invest in Ethereum, an ideal example of this would be when Tesla withdrew from its initial bet to establish Bitcoin as a means of payment after various pressures due to its carbon footprint.
With PoS, Ethereum has a free hand for any investor, especially investors who must follow the ESG standard, to inject capital by buying the token or in companies related to Ethereum activity. In this way, Bitcoin is left alone in the face of media danger while Ethereum gets rid of one of the most controversial issues in recent years regarding cryptocurrencies.
Who Will Benefit from the Exodus of Ethereum Miners?
Like any evolution, there are always groups that are negatively affected by the new conditions. Thus, various groups of Ethereum miners have tried to boycott the event, seeking to abolish EIP-1559, or have threatened a new Ethereum fork.
However, the efforts seem to have been in vain, although they show the discontent of relevant actors in the crypto industry.
Meanwhile, the migration of Ethereum to Ethereum Classic, the original Blockchain that will continue to function through PoW, seems like the easiest destination as Vitalik Buterin already pointed out.
By Audy Castaneda
