The much anticipated update took place without incident early on Thursday morning. The Ethereum blockchain is still functioning properly, however it now relies on a system of entailment proofs rather than work-based evidence to validate transactions. A change that will enable the network to use dramatically less energy.
According to the key players in the operation, the Ethereum blockchain, which is the second-most significant in the world of cryptocurrencies after that used for Bitcoin, has successfully undergone the technical change necessary to make it more efficient and energy-efficient. "And we've finished it! (...) Everyone who helped make The Merge (fusion, the technical name for the mutation, ndlr) successful can feel quite proud of themselves right now, tweeted Vitalik Buterin, cofounder and guardian of this blockchain.
"The Merge" involves switching from a proof of work (or "proof of work") consensus mechanism to a proof of stake (or "proof of stake") mechanism to validate transactions on the blockchain, a massive computer database regarded as unfalsifiable. As a result of this operation, Ethereum will use significantly less electricity to operate, while the bitcoin blockchain will continue to request proofs of work, requiring that all of the Bitcoin network's machines run continuously to validate transactions.
Approximately 20% of the value of all existing virtual currencies is represented by ether, the cryptocurrency directly associated with Ethereum, which comes in second place to bitcoin (40%). Ethereum, however, has a much wider range of applications than its rival because it provides support for numerous uses, such as NFT exchanges.
In a situation of rapid growth, Ethereum has chosen to implement a transition to a less energy-intensive system. A risky operation that some have compared to switching a running vehicle's diesel engine out for an electric one.
Following this "mutation" on Thursday, Binance, the largest cryptocurrency exchange platform in the world, tweeted that it would resume trading on Ether. Prior to the transaction, Binance has suspended these exchanges out of caution.
Currently, "everything has gone exactly as planned," said Simon Polrot, a blockchain expert and former president of the Association for the Development of Digital Assets (ADAN), to AFP.