The Ethereum ‘merge’ and its consequences
The Ethereum ‘merge’ and its consequences Submitted 16|09|2022 - 11:40am Benjamin Dean, Director, Digital Assets, WisdomTree writes on the Ethereum merge. The Ethereum network experienced an update in mid-September 2022. Colloquially termed ‘the merge’, this update involved transitioning the network’s consensus mechanism to proof of stake. The consequences of this change offer both opportunities and risks for investors. The opportunities will present themselves in terms of a staking yield for those who stake their ether holdings. Risks will be seen in cybersecurity terms, should there be a critical bug in the updated code base, and in terms of compatibility with the many decentralised applications (dApps) that rely on the Ethereum base layer. There is also the chance that a break-away group decide to ‘hard fork’ the network so as to preserve their mining revenue streams, which has implications for current ether holders.
The Ethereum ‘merge’ and its consequences
The Ethereum ‘merge’ and its consequences Submitted 16|09|2022 - 11:40am Benjamin Dean, Director, Digital Assets, WisdomTree writes on the Ethereum merge. The Ethereum network experienced an update in mid-September 2022. Colloquially termed ‘the merge’, this update involved transitioning the network’s consensus mechanism to proof of stake. The consequences of this change offer both opportunities and risks for investors. The opportunities will present themselves in terms of a staking yield for those who stake their ether holdings. Risks will be seen in cybersecurity terms, should there be a critical bug in the updated code base, and in terms of compatibility with the many decentralised applications (dApps) that rely on the Ethereum base layer. There is also the chance that a break-away group decide to ‘hard fork’ the network so as to preserve their mining revenue streams, which has implications for current ether holders.