A historic event in the cryptocurrency world unfolded in the early morning around 2:45am EST on September 25, 2022. Ethereum, the second largest cryptocurrency successfully began transitioning its underlaying consensus mechanism from proof of work (PoW) to proof of stake (Pos).
The transition to proof of stake was highly anticipated by the crypto community which faced many delays after talks about the merge began in 2018. The merge transitions Ethereum's consensus mechanism from an energy intensive proof of work to a environmentally friendly, faster and scalable proof of stake mechanism. The transition was triggered by Ethereum's mainnet reaching a Terminal Total Difficulty (TTD) of 58,750,000,000,000 when mining ETH was made impossible. The crypto community watched in the early morning as the network successfully proposed and approved its first block of transactions in just over 12 minutes with its proof of stake mechanism.
A few days leading up the the merge, many exchanges opted to place a temporary pause on all Ethereum and Ethereum based token trading as a precautionary measure. Trading has resumed after the transition finalized without any hiccups.
The unprecedented feat completed by the Ethereum team marks an important milestone for Ethereum. The transition to proof of stake makes a stronger case for those who believe in the "flippening"; where Ethereum's market-cap will overtake Bitcoin as the number one cryptocurrency. Reduced transaction fees, faster transactions, and scalability bodes well for Ethereum and not to mention the reduction of energy consumption by 99% as the world faces an energy crises due to the ongoing Ukraine-Russia conflict. Nonetheless, today marks an important milestone in the cryptocurrency world and we are all excited to see what this transition in technology brings.
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