In a recent interview, Vitalik Buterin said that the story revolves around Ethereum in time Merge will only start gaining momentum after the actual update happens. Co-Founder Ethereum also said that Merge is not yet priced in, needs to be "on schedule" and discusses the process of developing scalability in the ecosystem.
Vitalik Buterin discusses Merge
Speaking in a interview with David Hoffman, co-host of Bankless at the Ethereum Community Conference last week, Buterin said that the network's long-awaited update could change sentiment in the space. cryptocurrency.
“Once the Merge happens, morale will be higher,” he said, referring to projects built in the Ethereum ecosystem.
He also thinks the update is “undervalued” because it hasn’t launched yet, suggesting that he is primarily talking about faith in Ethereum rather than the price of Bitcoin. ETH.
“Basically, Merge is undervalued because I don’t expect it to sound like market terms, but more like a story or psychological terms.”
Many Ethereum Believers have predicted Merge to be a potential catalyst for price push ETH increased, but the whole market cryptocurrency The gloom means the asset is now far from the highs. Despite this month's increase, ETH is worth around $1,649 at press time, still 66% below its peak.
While market interest in ETH is down from its peak in late 2021, Merge is the biggest protocol update in Ethereum's history. Specifically, it will convert the Proof-of-Work mainnet to the Beacon Chain Proof-of-Stake, aka the execution and consensus layers.
Once Merge is implemented, Ethereum will use Proof-of-Stake and network validators to reach consensus instead of relying on Proof-of-Work and miners. That is expected to bring some changes, such as higher energy efficiency and reduced ETH issuance as the protocol will no longer need to reward miners.
Buterin alluded to energy efficiency in his interview, saying that people often misunderstand Ethereum's energy usage and how the protocol will change after Merge.
“In terms of terms, I think it won't be priced in until it happens. Even today, many people still act as if this environmental problem is a fatal flaw.”
Ethereum is a platform under scrutiny for its environmental impact in 2021, mainly due to the cryptocurrency mining ban in China and the explosion of cryptocurrency. NFT into the mainstream market.
Scalability and market cycles crypto
During the interview, Buterin also reflected on the current state of the crypto ecosystem as the space endured a months-long downturn following last year’s euphoric bull cycle. He argues that there are many benefits and costs to the cyclical nature of cryptocurrencies.
“The boom market attracts a lot of people and gets the community excited. That's fine, but they give people an overwhelming impression of what the space promises," he said, before delving into bad actors and politicians. "They draw attention from people who don't mean well, and the government decides why it exists."
Like he said during his presentation at EthCC, Buterin also commented on other major technological developments happening in the vast Ethereum ecosystem. Discussing layer 2 scaling solutions, he admits development lags behind market demand.
“The scalability engine isn’t coming fast enough for this cycle, but will be enough for the next,” he said, before noting that there have been promising developments with rollups and zkEVM solutions. launched on the market.
He also acknowledged the need for Ethereum to “completely change everything,” pointing to Merge and sharding as important protocol changes to come. Although he did not comment on Merge's expected launch date, he insisted it cannot be postponed forever (updates have been delayed for years).
“Merge really needs to go on schedule.”
Before launching on mainnet, Merge will have one final test on testnet by Goerli. According to member Tim Beiko of the Ethereum Foundation, the event will happen sometime between August 6 and 12. If no major issues arise, Merge on mainnet is expected to be scheduled for mid-September.