{"id":1641738,"date":"2022-09-15T11:35:20","date_gmt":"2022-09-15T15:35:20","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1641738"},"modified":"2022-09-15T11:35:31","modified_gmt":"2022-09-15T15:35:31","slug":"explainer-ethereums-energy-saving-merge-upgrade","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/explainer-ethereums-energy-saving-merge-upgrade\/","title":{"rendered":"Explainer-Ethereum\u2019s energy-saving Merge upgrade"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">8<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fexplainer-ethereums-energy-saving-merge-upgrade%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1641738&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>By Elizabeth Howcroft and Hannah Lang<\/p>\n<p>(Reuters) \u2013     Ethereum, the blockchain that underpins the world\u2019s second-largest crypto token ether, on Thursday underwent a major software upgrade that slashes the amount of energy needed to create new coins and carry out transactions. <\/p>\n<p>Here\u2019s what you need to know about the \u201cMerge\u201d as the shift is known. <\/p>\n<p>WHAT IS ETHEREUM?<\/p>\n<p>Like other blockchains, Ethereum is essentially a digital database shared across a network of computers. It records ownership of the cryptocurrency ether, and other Ethereum-based digital assets such as non-fungible tokens.<\/p>\n<p>Proponents say Ethereum will form the backbone of much of the widely hyped but still unrealised \u201cWeb3\u201d vision of an internet where crypto takes centre stage in applications and commerce. <\/p>\n<p>SO WHAT IS THE MERGE?<\/p>\n<p>The \u201cMerge\u201d is a change to the way Ethereum processes transactions and how new ether tokens are created.<\/p>\n<p>It involved the Ethereum blockchain combining with a new separate blockchain. The new system, known as \u201cproof-of-stake\u201d, slashes the Ethereum blockchain\u2019s energy consumption by 99.9%, developers say.<\/p>\n<p>Most blockchains, including bitcoin\u2019s, devour large amounts of energy, sparking criticism from some investors and environmentalists.<\/p>\n<p>The Ethereum Foundation, a prominent non-profit organisation that says it supports Ethereum, says the upgrade will pave the way for further blockchain updates that will facilitate cheaper transactions. <\/p>\n<p>HOW BIG OF A DEAL IS THIS? <\/p>\n<p>Ethereum backers say the Merge is a monumental moment for the $1 trillion crypto sector.<\/p>\n<p>Proponents believe the Merge will make Ethereum more favourable compared to arch-rival bitcoin \u2013 the world\u2019s top cryptocurrency \u2013 in terms of price and usability. <\/p>\n<p>That could see Ethereum applications become more widely used.<\/p>\n<p>Some investors are betting the change will be significant for the price of ether, which has gained more than 50% since the end of June, compared to bitcoin\u2019s minimal gains.<\/p>\n<p>Ether\u2019s price showed little reaction to the Merge\u2019s completion on Thursday, trading at around $1,624.<\/p>\n<p>PROOF-OF-STAKE? SOUNDS TECHNICAL<\/p>\n<p>It is. But it\u2019s also important.<\/p>\n<p>There are different ways transactions on the blockchain \u2013 the software that underpins most crypto \u2013 can be verified. In the \u201cproof-of-work\u201d system previously used by Ethereum, new transactions were checked by crypto miners. <\/p>\n<p>Miners used powerful computers that solved complex maths puzzles and updated the blockchain, earning new crypto tokens. While this made records on the blockchain secure, it was highly energy-intensive. <\/p>\n<p>In the \u201cproof-of-stake\u201d system, ether owners will lock up set amounts of their coins to check new records on the blockchain, earning new coins on top of their \u201cstaked\u201d crypto. <\/p>\n<p>SOUNDS LIKE A NO-BRAINER, RIGHT? <\/p>\n<p>Maybe. While Ethereum developers say the \u201cproof-of-stake\u201d model has safeguards to ward off hackers, others say criminals could attack the blockchain under the new system. <\/p>\n<p>If a single entity accumulated the majority of ether staked to validate new transactions, they could alter the blockchain and steal tokens. Crypto experts also say there is a risk that technical glitches could mar the Merge, and that scammers could take advantage of confusion to steal tokens.<\/p>\n<p>It may also become easier for developers to build programmes on the Ethereum network, potentially boosting adoption. Still, those updates are likely months, if not years, away. <\/p>\n<p> (Reporting by Hannah Lang in Washington and Elizabeth Howcroft, editing by Tom Wilson, Chizu Nomiyama and Jason Neely)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/?attachment_id=2749204\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/tagreuters.com2022binary_LYNXMPEI8E0ED-VIEWIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI8E0ED-VIEWIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Elizabeth Howcroft and Hannah Lang (Reuters) \u2013 Ethereum, the blockchain that underpins the world\u2019s second-largest crypto token ether, on Thursday underwent a major software upgrade that slashes the amount<\/p>\n","protected":false},"author":66,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1641738","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1641738","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1641738"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1641738\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1641738"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1641738"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1641738"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}