Crypto investors are looking forward to the end of May, a month that has brought nothing but losses. And, while it's too soon to say whether the worst is over—Bitcoin is currently trading below $30,000 as this has taken its toll on Altcoins including relatively new ones like Solana which is one of the largest transaction network; Concordium which is a fast and cheap transaction network e.t.c and could fall further—it appears that the industry will weather the storm just fine. So long as the Ethereum merger goes smoothly.
If you've been living under a crypto rock, "The Merge" refers to the long-awaited upgrade to the Ethereum blockchain, which will see the No. 2 cryptocurrency switch to a proof-of-stake model, removing concerns about Ethereum's environmental impact and dramatically improving transaction speed.
The Merge is the most recent name (the previous one was Ethereum 2.0) for a process that has been ongoing for years and has been postponed numerous times. However, Ethereum experts, including co-founder Vitalik Buterin, are now predicting that the event will take place in August when the Beacon chain (a parallel Ethereum blockchain that is serving as a proof-of-stake test) merges with the main Ethereum chain.
They had better be correct. Crypto desperately needs a win right now, and Ethereum pulling off the most significant upgrade in blockchain history would provide it. It would show that the Ethereum community, which is known for being friendly but frivolous, is capable of doing serious business.
It could also spark a significant ETH price increase.
While Ethereum's chances of completing the merger appear promising, there are also reasons to be concerned. The Beacon chain experienced a so-called "block reorganization" event this week, in which its blockchain forked for seven consecutive blocks—something that hasn't happened in years. While the cause appears to be benign, it triggered a brief period of uncertainty because the emergence of multiple, competing Ethereum chains following the merger would be disastrous.
To their credit, the elite developers assisting in the merger have worked patiently and methodically to ensure that the new Ethereum blockchain is ready for prime time. And, as Kraken CEO Jesse Powell stated on a recent episode of Decrypt's gm podcast, he is unconcerned about the numerous delays that have plagued the merger process, because success is more important than speed in a situation of this magnitude.
Powell is correct, but the Ethereum merger cannot continue for much longer. Further delays will elicit accusations that the Ethereum community is unprepared for the task, and it is possible that the blockchain's gas fee woes, which are a major impediment to crypto's mainstream adoption, will never be resolved. Failure by Ethereum to move beyond the energy-intensive proof-of-work system would provide additional ammunition to environmentalists and politicians who already have a grudge against the crypto industry.
The bottom line is that the stakes for the merger could not be higher, not just for Ethereum, but for the entire crypto industry. Success will restore faith in Web3, whereas further delays or a botched execution will result in a price collapse and a new and nasty Crypto Winter. Everyone in the crypto community, including Bitcoin maxis, should be rooting for Ethereum to pull this off. The alternative is a market much worse than the one we're in right now.
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