Ethereum takes big step towards new network!
The digital currency Ethereum has taken a big step towards a new network that should make it much better.
The network of this digital currency is a proof of work (PoW). This means that the coins are made by miners who process transactions. They are rewarded for this. However, this takes a lot of time and therefore also a lot of energy. And various currencies are therefore under fire, it just has to become more economical.
Ethereum moves to a new network
Scaling up the network is also a thing here. That doesn’t work so well now, which is already causing problems. This results in high transaction costs due to network congestion. Which, by the way, has already happened a few times. This allows users to drop out and look for alternatives. Ethereum is of course afraid of this.
That is why the network has been working for a long time to update to perform. This update has been tested and it has been done well. The intention is that Ethereum will eventually switch to proof of stake (PoS). Then no more miners are needed. Instead, ‘holders’ will secure their crypto, with which they contribute to the processing of transactions. This is a nice ambition, but it is not so easily done.
switch
The first step towards this new network was already taken two years ago. This network was then called Beacon Chain. This network is also a blockchain that runs parallel to the current blockchain of the coin. The big difference is that the Beacon Chain is a PoS network.
At this point, many coin owners are already using this chain and securing their coins. The complete transition, the ‘merge’, has not yet been made. They are very careful with this, because one mistake in the code can mess everything up. The public Ethereum testnet Kiln successfully completed the merge, so now the next step can be taken. It is unknown when the merge will be complete.
