The Merge: The important Ethereum blockchain succeeds in its transformation

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The mergerThe important Ethereum blockchain succeeds in its transformation

The most important blockchain in the world of cryptocurrencies, after the one used for bitcoins, has changed its mode of operation, to become less energy-intensive.

The Ethereum blockchain and its virtual currency Ether.

REUTERS

“And we have finalized! (…) Everyone who contributed to the success of the Merge (note: fusion, the technical name of the mutation) can feel very proud today ”, tweeted Vitalik Buterin, co-founder and protector of the Ethereum blockchain. The most important in the world of cryptocurrencies after the one used for bitcoins, has succeeded in the technical change that should make it more efficient and less energy-intensive, according to the main players in Thursday’s operation. The “Merge” consists in changing the way operations are validated on the “block chain”, a huge tamper-proof computer register.

Ether, the cryptocurrency directly linked to Ethereum, represents only about 20% of the total value of existing virtual currencies, second only to bitcoin (40%). But Ethereum has a much broader scope of applications than its competitor, because it serves as a support for multiple uses, such as exchanging NFT. To become less energy-intensive in a context of rapid growth, Ethereum has decided to move towards a system with lower energy consumption. A risky operation, which has been likened by some to replacing a diesel engine with an electric motor on a moving vehicle.

From “Proof of Work” to “Proof of State”

Concretely, it is one of the pillars of this “blockchain” – the technology that serves in particular as a support for cryptocurrencies – which has been modified. Since it operates without a central authority, it is therefore up to some of its users to validate the transactions that take place there, such as NFT exchanges. Until now, to belong to this circle of “validators”, it was necessary to solve a very complex calculation that required a great deal of computing power. The exercise, called “Proof of Work” in English, consumes a large amount of electricity and therefore the idea was to find a greener alternative. From now on it will therefore be necessary to place a bet of 32 Ether (the cryptocurrency associated with Ethereum, or about 50,000 francs) to be able to validate on the “blockchain”, this sum can be seized in case of misconduct, a method called “Proof of Stake “(” Proof of Stake “in French).

Binance resumes trading

After this “mutation” on Thursday, Binance, the largest cryptocurrency exchange in the world, announced on Twitter that it would resume trading on Ether. Binance had as a precaution suspended these exchanges prior to the transaction, like most other cryptocurrency exchanges. So far “everything has gone exactly as planned,” Simon Polrot, a blockchain specialist and former president of the Association for the Development of Digital Assets (ADAN), told AFP.

(AFP)

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