The most anticipated event in the cryptocurrency market this year is the renewal of the Ethereum (ETH) network. According to many analysts, such a change could give an impulse to assets, which will take them out of the bear market (permanent decline in the value of the asset). The next major network update will take place in August, according to lead developer Preston Van Loon.
Ethereum project co-founder Vitalik Buterin confirmed the developer’s words, adding that the merger (POW with POS) is likely to happen in late summer, but if there are any potential risks, September or October is also possible.
At the Eth Shanghai Summit, Vitalik said that the Ethereum merge (POW to POS) is likely to happen in the summer in August, If there are some potential risks, September or October is also possible. Live：https://t.co/WSl2IpAyJW
— Wu Blockchain (@WuBlockchain) May 20, 2022
This merger is a milestone in the transition of the Ethereum network consensus mechanism from Proof-of-Work to Proof-of-Stake, which will be an important step as it will reduce Ethereum’s power consumption by more than 99%.
But the developers also warn about the so-called “difficulty bomb” – a mechanism that increases the level of complexity in the mining algorithm with proof of work. As the computation becomes more complex, the result is an increase in block time compared to the standard one and a decrease in rewards for miners.
It was previously assumed that the merger would take place in June, but then the timing was adjusted .
