Citi: Ether's merger will have multiple impacts on blockchain

08/05 11:35

According to coindesk, Citi (C) said in a research note on Thursday that the planned merger of the Ether blockchain, upgrading it from a proof-of-work (PoW) system to a more environmentally friendly proof-of-stake (PoS) mechanism, will have a number of implications. These include a reduction in energy intensity, a transition to deflationary assets and "a potential roadmap to a more scalable future through sharding". Merge is the first of five planned upgrades to the network, which may only increase transaction speeds by 10 per cent by reducing block times, according to the report. However, it paves the way for "Surge", the next planned upgrade to the network, which promises to bring 100,000 transactions per second (TPS) capacity to the blockchain. Citi says the switch from PoW will reduce overall issuance by 4.2% per year, and could improve the token as a store of value as ETH eventually becomes deflationary.
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