Ethereum and Bitcoin have been neck and neck as crypto competitors since their inception. Today, Ethereum has stuck its neck out further to become a greater asset in the cryptocurrency arena.
The reason for this is due to the merge that Ethereum just successfully completed that reduces the need for crypto mining.
For quite some time, Ethereum has been working on converting from proof-of-work to proof-of-stake. This merge means that expending boatloads of energy to generate ether tokens will no longer be necessary.
Instead of using complex computational effort that is terrible for the environment, Ethereum will be produced on a much greener level.
For every ethereum transaction, tokens will be staked as collateral in order to verify validity. Users will have the chance to accrue interest on staked assets as a reward.
Nearing Carbon Neutrality
This foundational transition is a huge development amidst a disastrous turn of events for the crypto industry. Moving from proof-of-work to proof-of-stake will reduce transaction costs, increase scalability and potentially attract Wall St. investors with environmentally-friendly ideals.
Some people are worried that it may put Ethereum in a grey area when it comes to regulation. There have been swirling talks about the fact that this merge may put ETH in the ‘common enterprise’ classification as an unregistered security in the eyes of the SEC. Only time will tell how it plays out.
Regardless, this is a monumental development in cryptocurrency spheres and could lead to a major makeover for the overall user base and reputation of the digital crypto space.
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