What to Expect from Ethereum's Merge Upgrade
Christine Kim | Galaxy Digital Research | [email protected] | @christine_dkim
The Merge upgrade is Ethereum’s long-awaited transition from a proof-of-work (PoW) consensus protocol to proof-of-stake. As the network’s most complex and radical code change to date, the Merge is expected to strengthen the value proposition of ether (ETH) in three main ways.
Narratives around ether as an environmentally sustainable cryptoasset are expected to take off in a way that has never been possible for bitcoin, the world’s first and largest cryptoasset, due to Bitcoin’s reliance on PoW mining.
In addition, the Merge’s impact on network issuance is likely to strengthen the narrative around ether as a store of value.
Finally, the Merge is also anticipated to bolster the narrative around ether as a productive asset able to generate profits and cash flow through staking yields.