This article comes fromgobankingrates, original author: Yaёl Bizouati-Kennedy
Odaily Translator |
The ethereum merger is expected to take place around September 15th and may become one of the most important historical moments in the history of ethereum. Although the encryption ecosystem will benefit from it, not everyone will be a winner. We have sorted out the 3 potential biggest winners and 2 biggest losers. Let's take a look together.
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Biggest Winner After Ethereum Merger: ETH
On the other hand, after the merger of Ethereum, ETH will be more and more closely linked to macroeconomic factors. Chris Terry, vice president of enterprise solutions at SmartFi, said that in the long run, the world needs more efficient blockchains, so ETH will be the ultimate winner, but having said that, due to macroeconomic impacts, no matter how much the post-merger proof-of-stake consensus mechanism Well, in the context of a lower global economy and a stock market crash, ETH may still have some risk.
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Two other winners from Ethereum merger: DeFi and NFT
Today, hundreds of DeFi ecosystem projects are built on the Ethereum blockchain, as are many NFT projects, and the merger of Ethereum will be one of the biggest drivers of DeFi and NFT growth.
Krugljakow, founder of GOGO Protocol, added: "While the merger itself will not immediately make Ethereum faster and cheaper, it lays the foundation for subsequent upgrades. That's why it is such an important event."
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The biggest losers after the Ethereum merger: PoW miners
As mentioned above, after the merger, Ethereum will shift from a proof-of-work (PoW) consensus mechanism to a proof-of-stake mechanism, and energy consumption will also be reduced by 99.95%, which means that most expensive and energy-intensive mining machines will become useless , Miners will also become the biggest losers after the merger of Ethereum. Freddy Zwanzger, head of the Ethereum ecosystem at crypto infrastructure company Blockdaemon, put it bluntly:
According to the "2022 Digital Asset Outlook Report" released by The Block Research, Ethereum miners generated $16.5 billion in revenue, a year-on-year increase of 678%, a record high, mainly due to the surge in NFT activity in the second and third quarters. Transaction fee income increased. In fact, Ethereum hardware miners have invested billions of dollars in hardware equipment, once the merger is completed, these equipment will soon become useless, and they will need to migrate to mine other encrypted assets, which are obviously more profitable than ETH much lower.
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Another Loser After Ethereum Merger: Speculators
It should be noted that although the merger of Ethereum will bring many positive changes to the network and ecology, the upgrade process is still very complicated and there are large uncertainties, which may lead to increased volatility in the encryption market. Speculators may end up losing money.
Andy Bromberg, CEO of ECO, explained: “Given the complexity of the merge technology, unexpected problems may arise, and while the testnet merge has generally gone well, there are still unknowable risks for this scale of migration. Decentralized and decentralized products—whether it’s a lending protocol or an exchange—may have problems with forks.After a merger, multiple blockchains will suddenly coexist, which may also cause a series of problems. "
