Crypto Segment: Both Bitcoin and Ether are mined using proof-of-work in which thousands of miners or network nodes compete to solve complex math puzzles. This process consumes a lot of electricity.
Investors are disappointed as the June upgrade “Merge” of the second-largest cryptocurrency Ether’s blockchain, Ethereum, has been delayed. This upgrade is expected to significantly reduce the consumption of electricity in the mining Ether, speed up transactions and reduce costs. This was also a big reason behind the rally in Ether this year.
Brendan Playford, founder and CEO of Masa Finance, a decentralized financial data platform, said, “This upgrade is getting delayed. It is very complex and it is not certain whether it will deliver on the promise of increased transaction speed and cost reduction. ” Ethereum’s price dropped 13 percent last month after major developer Tim Beiko reported that the upgrade was postponed in June. He had told me that it will not happen in June and that it is likely to happen a few months later.
Ether has a market capitalization of approximately $363 billion, which is less than half the market value of bitcoin. The share of these two cryptocurrencies in the crypto market is about 60 percent. However, bitcoin has no real potential to be used for contracts in activities related to decentralized finance. For this reason, many investors believe that there may be a big change in this market. Ethereum could benefit greatly from the success of Merge.
Noelle Acheson, Head of Market Insights at Genesis Trading, said: “We see increasing interest in Ethereum prior to the merge. However, it is not known when the upgrade will happen.” He noted that this is an indication that Ethereum is undervalued and is likely to rise.
Both Bitcoin and Ether are mined using proof-of-work in which thousands of miners or network nodes compete to solve complex math puzzles. This process consumes a lot of electricity and increases pollution. In comparison, mining in a proof-of-stake method significantly reduces electricity consumption. Ethereum is expected to increase its transactions per second manifold by introducing this method. This would enable it to compete with altcoins such as Solana and Cardano, which partially or fully use proof-of-stake for investing, trading, and non-fungible tokens.