Post-Merge Ethereum: The Effects of Proof of Stake on Decentralization

Image Source

If there is something we should be grateful of that has happened as innovation in the digital world, I will say it is the introduction of the Blockchain technology that has brought a lot of privilege which we might not even imagine of years ago. When it comes to the Blockchain network, we have list of examples like the bitcoin network and the Ethereum network and many more. Today I will be focusing on talking extensively about the Ethereum networking.

Ethereum as a Blockchain have been able to transform a lot of aspect in the Blockchain space. The fact that it has moved from the proof of work which is PoW that we all know it to be and now working under the Proof of Stake (PoS). Whenever there is a transition like that, it is always called the merge and trust me, it has become the major foundation on which it gives birth to several Blockchain history. The fact that this transition takes place, if has been able to settle issues like the consensus algorithm challenges and many more.

Before even diving to what I want to talk about today, I will like to establish that the key attributes that keeps the Blockchain technology going up till now is the Decentralisation concept. The fact that decision making power is spread across the members of the network and not just a centralised authority or team, it has make it super easy for the Blockchain technology to function above the censorship and other related manipulation challenges. But of course, the factor of the Decentralisation depends on a lot of reasons across different Blockchain networks.

Let me talk briefly how the Ethereum network have been operated before the merge. On several occasions, the proof of work have been having a whole lot of Decentralisation challenges because the Ethereum network have been working on the proof of work consensus mechanisms. Even though it was the first form of consensus algorithms that the Ethereum network works with, it comes with a whole lot of challenges.

Image Source

The fact that it involves miners to be able to solve computational puzzles so that transactions can be validated and carried out on the Ethereum Network for the transactions to be carried out. The first flaws or should I say the challenge is the mining centralisation. Most of the time, the mining power have always become limited to a particular regions which I believe wilk make the Decentralisation to be difficult to achieved.

Not only that, most of the time, it always comes with high energy consumption which I believe always has a negative effect on the environment most especially the chemicals released to the environment.

Now let me move to the future of the Ethereum network and which is the Proof Of Stake which I will like to talk about. The Proof Of Stake which comes as a result of the merging or should I say the transition comes in place to help replace the high energy demanding which Proof Of Work always comes with. This has helped to address a lot of limitations that for years the Ethereum network has been facing.

There are a whole lot of advantages which I believe Proof of Stake offers to the Decentralisation aspect or space. The first is the fact that it helps to reduce the entry barriers that a lot of miners and validators might have been facing assuming they are using the Proof Of Work. This goes a long way to encourage massive participation and also at the end of the day makes sure that Decentralisation is fully achieved.

The other advantage is the fact that it encourages security and censoring resistance making it difficult for any centralised authority or any centralisation stuff to come up. If you will ask me, at the end of the day I will go for the proof of stake much more than the proof of work. It has bring a whole lot of positivity for the Ethereum world beyond what we can ever imagine of I must truly confess.

As I conclude, you will agree with me eventually that the transition that Ethereum network experience was actually needed and it is just a matter of time before we begin to see more and more of it. The future is bright for the Blockchain space and including the Ethereum network.