How will the transition to Proof of Stake affect Ethereum? The creator of My Ether Wallet responds

Merge, upgrade to Proof of Stake or launch Ethereum 2.0; It doesn’t matter what you call the change from Ethereum’s current proof-of-work mechanism to proof-of-stake. Since Ethereum’s inception, this update has always been part of the blockchain network’s roadmap; But how will the transition to proof-of-stake affect the Ethereum price, projects, developers, and users of the ecosystem in the long run?

The article you will read below, written Kosala Hemachandra is the founder of MyEtherWallet. As one of the old and well-known figures in the ecosystem of digital currencies and especially Ethereum, he has shared his views on the expected update of this network with users.

As we welcomed the trial run of Ethereum to proof-of-stake on the Ropsten network, we believe that the integration [پیش رو] It will also be a big leap towards scaling Ethereum to be accepted as a mainstream cryptocurrency ecosystem.

With the widespread adoption of the use of virtual tokens (NFTs), decentralized autonomous organizations (DAOs), and staking of digital currencies, the Ethereum ecosystem must expand to be ready for use in the next ten, twenty, or fifty years. After the successful deployment of Ethereum 2.0 and the change of the network mechanism to proof of stake, developers will continue to build these innovations using environmentally friendly processes.

My long-term view of the Ethereum update

As someone who has lived and grown with all of Ethereum’s changes, I personally believe in this innovation and I don’t think the merger will negatively affect Ethereum’s current performance; Unless you are a miner, because [با اجرای این به‌روزرسانی] You can no longer receive Ethereum as a mining reward. However, I think validators will easily replace miners and pave the way for a more scalable network.

Also Read: Investing in Ethereum 2.0: Risks and Rewards

The idea of ​​integration has always been an essential part of our plans; However, creating a fully decentralized proof-of-stake system by experts required research and took several years. I think that abandoning the proof-of-work mechanism will not cause a problem in the adoption of Ethereum, instead, the use of proof-of-stake can be an opportunity to improve the experience of Ethereum users.

From a user’s point of view, the Ethereum integration will not significantly change the course of his daily activities. This update will reduce inflation somewhat because [در مدل جدید] Users no longer have to pay any fees to miners and will only pay for validating transactions.

The effect of mergers on the behavior of large institutional investors

Continued interruptions in the integration of the current proof-of-work network with Beacon Chain (Ethereum’s Proof-of-Stake Network) have raised concerns about the continued interest of institutional investors in Ethereum. However, now with the final update date set for September 19, these big-time investors will have a reason to follow Ethereum events.

Investing in Ethereum continues to be attractive to these investors, and after the merger, this interest will increase due to the potential for higher returns. As more investors look for long-term profit opportunities in cryptocurrencies, the merger will help create a more exciting and mature ecosystem for them to invest in.

From the point of view of institutional investors, the merger creates an opportunity for these institutions [یا مؤسسات سرمایه‌گذاری] With the aim of benefiting from the advantages that this update brings, pour their capital into the Ethereum market.

The integration of China Beacon is the first step towards building a scalable Ethereum and we should consider it as a turning point in building an environmentally friendly blockchain for the migration to the third generation of the web (Web 3.0).