Cryptoverse: Ether prepares for epic ‘fusion’ in the quest to darken bitcoin

Ether has promised to do better. It has promised to go to the next level, peripheral cryptocurrencies and even outshine the godfather, bitcoin. But the clock is ticking.

Cryptocurrency No. 2 was to be weeks away from the “merger”, a transformative June upgrade of its blockchain Ethereum to make it faster, cheaper and less power-hungry, giving the prospect of a smarter and cleaner crypto future.

The expectation had supported ether this year, even as inflation and monetary tightening chained bitcoin. But the merger – which would see ether mining shift from the energy-intensive proof-of-work method to proof-of-stake – has been delayed, frustrating investors.

“The timeline for seeing this launch continues to expand,” said Brendan Playford, founder and CEO of the decentralized financial data platform Masa Finance.

“It is certainly plausible that Ethereum’s long – awaited upgrade to a proof-of-stake system could be delayed again, as this transition is very complicated and still uncertain as to whether it can actually live up to its promise to lower costs and increase transaction speeds. ”

Ether fell 8% from $ 3,215 to $ 2,947 on April 11, the day Ethereum chief developer Tim Beiko said on Twitter that the June rollout had been pushed back while testing continued. That’s a 13% drop this month to $ 2,844.

“It will not be June, but probably in the next few months,” Beiko wrote in his tweet. “There is no set date yet, but we are determined in the last chapter.”

The timing of the merger – Ethereum’s EH1 chain will merge with a new chain to create ETH2 – remains unclear, although many crypto-monitors expect it to happen sometime this year. Beiko did not respond to a request for comment via Twitter and LinkedIn.

The fusion and the reversal

Ether’s market value of $ 363 billion is less than half of bitcoins BTC = BTSP, and together the two make up 60% of the crypto market.

Yet bitcoin remains only an investment with no real opportunity to be used for contracts in decentralized financing applications. For this reason, many investors believe that a reversal of the market is inevitable – called “the flippening” in cryptocurrencies – with the merger acting as a catalyst for Ethereum to become the dominant platform.

“We see funds rotating into Ethereum in preparation for the merger, though we do not know when that will be,” said Noelle Acheson, head of market insight at Genesis Trading. The buying interest, she said, “suggested that several funds seem to appreciate that (Ethereum) may be underestimated at this stage”.

Both bitcoin and ether are extracted or produced using a proof-of-work (POW) method, where thousands of miners or network nodes compete to solve complex mathematical puzzles.

This is a massive power-hungry process that is estimated to cause more pollution than a small country each year, fostering fears of crypto in a low-carbon world.

The alternative proof-of-stake (POS) method uses much less power because, instead of getting millions of computers racing to process puzzles, it allows nodes that put in the most coins to validate transactions.

Ethereum has long been hampered by issues of speed and treatment costs. It only processes 30 transactions per second as a proof-of-work blockchain, but expects to process as many as 100,000 transactions per second when it moves to POS.

It will allow it to compete with other, smaller altcoins like Solana and Cardano, which use all or part of POS for decentralized financing applications such as trading, investing, loans and even non-fungible tokens.

It is provided that Ethereum gets its upgrade.

“Ethereum maxis, people who believe in ‘the flippening’ think it will come very soon,” said Acheson at Genesis Trading. “But it’s just a theory and it needs to be seen.”

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