The benefits of the merger
Ethereum will go from a Proof of Work (PoW) -Proof of Work- consensus protocol to a Proof of Stake (PoS) -Proof of Participation.
Brian MosoffCEO of Ether Capital, explained three reasons why you think the evolution it will boost ether and kill off what are known as “Ethereum killers”.
The energy consumption of the PoW is very high. In fact, shortly after Elon Musk mentioned this as one of the reasons for stopping bitcoin payments at Tesla, ethereum crashed.
Some North American lawmakers are thinking about how to ban cryptocurrency mining companies for using carbon-based fuel in their operations.
According to Mosoff, this change “it will be 99% more energy efficient, and these financial institutions and asset managers that have internal ESG (environmental, social and governance) mandates, all of a sudden, they’re going to be saying, ‘This is leading the way for everyone else.'”
- Institutional capital will participate in Ethereum
Mosoff also believes that the merger will lead institutional investors to invest money in Ethereum 2.0which have been waiting since 2016 for the transition from Ethereum to PoS.
It refers to the fact that many institutional investors would be interested in taking their ether out of general circulation and giving it to the Ethereum network to hold, in exchange for becoming validators of the new consensus protocol.
- Other altcoins may be defeated against Ethereum
According to Mosoff, the merger will be a huge blow to projects that bill themselves as “Ethereum killers.”
The executive believes that once Ethereum goes PoS and lowers its creation cost and power usage, Ethereum competitors will fail.
The founder of Ether Capital specifically referred to projects like EOS, basic attention token, Solarium Y Tezoswhich use key elements of the Ethereum ecosystem, such as smart contracts, DeFi Y NFTbut perform blockchain activities more effectively than Ethereum right now, according to a Business Insider article.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
