Ethereum's switch to Proof of Stake, long in the works, is poised to finally move forward this summer. Speaking at the blockchain and Web3 Permissionless event, Ethereum lead developer Preston Van Loon said that The Merge code is ready for deployment to him. Final tests currently underway for an August release of the Merge for Ethereum 2.0.
The move from Proof of Work to Proof of Stake will mark a before and after for Ethereum mining. Proof of Stake in a simplified way will make it possible to mine Ethereum buying ETH and putting it as collateral to ensure that transactions on your blockchain are legitimate. They are now in Proof of Work, where mining teams with GPUs and CPUs solve complicated equations to support transactions.
In August, Ethereum will go to 2.0
Originally planned for 2019, the Ethereum network's Merge event marks the point where the blockchain's security and consensus mechanism shifts from the current Proof of Work model to the Proof of Stake design. It is expected to require much less hardware and power, which will make criticisms that it is bad for the environment old-fashioned. this transition will mark the end of GPU mining on the Ethereum network, Its token value, about $2.000 at the time of this writing, has made it one of the most profitable coins to mine without the need for specialized equipment like Intel's Blockscale ASICs.
The merger towards PoS should also allow Ethereum to claim higher energy efficiency compared to other PoW-based blockchains such as Bitcoin. This I would shield it from the regulations of several countries if regulations are made against cryptocurrencies based on the fact that its mining algorithms are very polluting.
Furthermore, it is expected that this will a drop in the surcharge that GPUs carry, the component that best mines cryptocurrencies with these algorithms. Ethereum has been criticized for forcing a price premium that prevents home users from accessing modern GPUs. It could also affect the charts dedicated to mining, the CMPs; since they will not be necessary to obtain ETH. This reliance on GPUs for crypto mining has led to problems for NVIDIA. It was recently fined for not giving details to investors of GPU sales to miners, considered a volatile market.
The Merge will most likely reduce the issuance of new ETH tokens by about 90%. The rate at which new Ethereum tokens come into circulation will be reduced. conn it more scarcity will be created and a higher price per token is therefore expected. All this would happen in August if there are no problems. But the Ethereum 2.0 Merge has been delayed for years, so it is not unlikely that it will suffer some more delay.
Source: Tom's Hardware
