Kelly Chambers
Kelly Chambers is the Senior Director of Marketing focusing on crypto investing at Betterment.
Kelly Chambers
Recently, Ethereum co-founder Vitalik Buterin said that the blockchain’s highly anticipated ‘merge’ will happen in August. If you haven't been tracking every update like it's your job, don't worry, we've done it for you. Here are three to get you up to speed:
There are currently two Ethereum blockchains, the main one called Mainnet which is Proof of Work, and a newer one launched in 2020 called Beacon Chain which is Proof of Stake. The merge will connect these two blockchains, adopting Proof of Stake from Beacon Chain and features like smart contracts from Mainnet.
Proof of Stake eliminates the need for energy-intensive mining used in Proof of Work, and instead secures the network using staked ether. Estimates show that the 'merge' could result in a 99.95% reduction in total energy use from Ethereum.
This is not like your least favorite software company pushing out a bug fix forcing you to restart your computer. Ethereum has always planned to move to Proof of Stake since launching in 2015. It's part of the long-term vision to make Ethereum sustainable, scalable, and make network participation more accessible to smaller participants (i.e. anyone with a computer).
That's the best part... no! We say keep on keeping on with your long-term investment plan. When the 'merge' occurs we'll continue to provide updates. And when it comes to the price of ETH, we don't believe in short-term forecasts on whether or not the 'merge' will have a positive impact, especially with 2022 being as volatile as it has been. Whether or not you own ETH, there is nothing you need to technically do.
Kelly Chambers is the Senior Director of Marketing focusing on crypto investing at Betterment.