The next Merge update for Ethereum is eagerly awaited by the global blockchain community. Stablecoins and transactions supported by the Ethereum blockchain may run into difficulties, according to a DappRadar analysis published before the launch. Ethereum is switching to the more energy-efficient Proof-of-Stake (PoS) mining model from its labor-intensive Proof-of-Work (PoW) mining model. The Merge, also known as the blockchain upgrade, is expected to be released in the middle of September and is regarded as the biggest blockchain update to date.
Ethereum offers a decentralized network of token trading, lending, and yield-farming initiatives that collectively handle billions of dollars in daily cryptocurrency value. The Merge update on the Ethereum blockchain might cause interruptions in Decentralized Finance (DeFi) protocols.
According to CoinDCX, the Ethereum blockchain has the greatest wealth locked up overall in decentralized exchanges and lending protocols.
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According to DappRadar's analysis, MakerDAO (MKR) recently asserted in a Twitter conversation that the Merge would do more harm than benefit. The developer of the DAI stablecoin is MKR. As part of their study, MKR also asserted that the Merge release may lead to selling pressure on PoW-based blockchains.
Recently, the cryptocurrency investing firm Grayscale has voiced worries over potential market effects of the Merge. According to the article, the cryptocurrency investment business thinks that the Merge might result in a fork with unanticipated and unfavorable results.
All of these forecasts will eventually be put to the test, but the Merge has been hailed as one of the most significant turning points for the blockchain sector.
Tether, the largest stablecoin, and Circle Pay, the company that produces USD Coin, expanded support for the Merge earlier last month.
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While Circle Pay has said that it would only utilize that version of Ethereum for the operations of USD Coin after the Merge has occurred, Tether has chosen to begin making preparations to support the Merge in accordance with its release timeline.
The Merge update is anticipated to reduce Ethereum's power usage by 99.95%, according to a blog post written by the platform's developers last year.
The blockchain's creators recently announced that bug bounty rewards for Ethereum can now reach $1 million (approximately Rs. 8 crore).
