Leaders.com
  • Business
  • Leadership
  • Wealth
  • Master Classes
  • Business
    • Entrepreneurs
    • Executives
    • Marketing and Sales
    • Social Media
    • Innovation
    • Women in Business
  • Leadership
    • Personal Growth
    • Company Culture
    • Public Speaking
    • Productivity
    • Hiring
    • Social Issues
    • Leaders
  • Wealth
    • Investing
    • Cryptocurrency
    • Retirement
    • Venture Capital
    • Loans and Borrowing
    • Taxes
    • Markets
    • Real Estate
  • Master Classes
Cryptocurrency Ethereum

Ethereum Merge finished last night (Photo Illustration by Avishek Das/SOPA Images/LightRocket via Getty Images)

By Tyler Hummel Leaders Staff

Tyler Hummel

Tyler Hummel

Tyler Hummel is a news writer for Leaders Media. He was the Fall 2021 College Fix Fellow and Health Care...

Full bio


Learn about our editorial policy

Sep 15, 2022

A Major Change for Ethereum Enthusiasts 

The second largest cryptocurrency received a significant technological update last night. 

Key Details

  • Crypto enthusiasts have been awaiting a major update to Ethereum, the second largest blockchain. 
  • Ethereum has officially changed over to a new consensus method that will change the way the currency processes transactions. 
  • “And we finalized! Happy merge all. This is a big moment for the Ethereum ecosystem,” says Ethereum co-founder Vitalik Buterin.
  • Merge, part of the ongoing transition into Ethereum 2, swaps the system from a proof-of-work system to a proof-of-stake system, similar to bitcoin.  
  • The overhaul is claimed to reduce the chain’s energy costs by 99.95%, although will not improve network fees or transaction speed, Coinbase reports. 

Why it’s important

One of the largest criticisms of cryptocurrency is the power consumption required by miners who need large computer rigs to mine new currency. These rigs are a major energy consumer that offsets less environmentally demanding currencies, as estimates suggest bitcoin mining consumes 150-terawatt-hours per year. 

“For blockchain critics, it will massively reduce the energy consumption of Ethereum—maybe by 99%. For ether holders, it will reduce the emissions of that coin, which should improve price appreciation,” says Axios. 

The changeover is complicated for Ethereum users though, many of whom were required to upgrade their computer rigs in order to keep up with the new demands of the blockchain. 

“Lots of decentralized node operators actually had to update their code—none of these people are employees of Ethereum. That’s not how Ethereum works. If all these independent network users all over the world hadn’t upgraded their software to the latest version, The Merge wouldn’t have worked,” says Axios. 

The problem

Both systems are designed to protect the integrity of the blockchains and dissuade malicious users, although advocates for both sides see vulnerabilities. Critics of Proof-of-Stake site security risks with the new system. 

“PoW proponents counter that PoS staking carries its own centralization and security risks, making it possible for malicious actors to directly “buy” control of the network. They also point out that PoS is a less battle-tested system than PoW, which has proven resilient as the backbone of the two largest blockchain networks,” says Coinbase.

“Nothing catastrophic has happened yet, despite plenty of dark predictions by an army of short-sellers,” says Gizmodo. 

What’s not being said

The Merge is not going to address Ethereum’s excessively high transaction fees, although the chain owners have looked into ways to address that issue now that proof-of-stake is implemented. 

“Ethereum hopes to permanently lower gas fees on its main layer after the Merge through sharding, which would split the network into smaller pieces and distribute data settlement more efficiently. The Surge, as the transition to sharding is known, is slated to happen sometime in 2023, though that may be an optimistic estimate,” says Blockworks. 

Home / News / A Major Change for Ethereum Enthusiasts 
Share
FacebookTweetEmailLinkedIn

Related Stories

61% Of Americans Are Living Paycheck-To-Paycheck 

by Tyler Hummel Leaders Staff
Markets

Sep 8, 2023

Nearly two-thirds of Americans are feeling pinched by inflation. 

Key Details

  • LendingClub’s newest research shows that 61% of adults lived paycheck-to-paycheck in July 2023, increasing from 59% in July 2022. 
  • Even with inflation decreasing from 8.5% to 3.2% in 12 months, consumers still struggle to get by.  
  • A portion of this is attributed to irresponsible spending, with 21% of survey respondents saying nonessential spending is responsible for their financial issues. 
  • Low-income consumers—making less than $50,000 per year—were among the hardest hit by tightening wallets, Fortune reports. 
  • Bankrate’s Annual Emergency Fund Report earlier this year found that 57% of Americans cannot afford a $1,000 emergency. 

Go deeper

FacebookTweetEmailLinkedIn

Google Cracks Down On A.I. Election Ads

by Tyler Hummel Leaders Staff
Tech

Sep 7, 2023

Political campaigns using artificial intelligence (AI) generated content must disclose this information in Google and YouTube content. 

Key Details

  • Google has revealed a new disclosure policy that will force election advertisers to label AI content distinctly from real content. 
  • As of mid-November, generative AI content must receive a label to make it clearly identifiable to avoid spreading election misinformation. 
  • Google’s digital ad business joins companies like Meta Platform’s Facebook and Instagram in cracking down on deep fakes and spreading misinformation. 

Go deeper

FacebookTweetEmailLinkedIn

Vivek Ramaswamy’s Anti-ESG Firm Is Worth $1 Billion 

by Tyler Hummel Leaders Staff
Environment

Sep 7, 2023

The third most popular GOP presidential candidate has built his name fighting “wokeness”—and that reputation is paying off for his asset management company. 

Key Details

  • Ohio-based Strive Asset Management is an anti-activism fund company that promises investors higher-quality returns and investments.  
  • It was partly founded by Peter Thiel and Bill Ackman to rival investors at environmental, social, and governance (ESG)-friendly firms. 
  • On Tuesday, the firm announced that its accumulated assets now exceed $1 billion, slightly more than a year after it launched in 2022. 
  • The company is also currently facing lawsuits from two former employees arguing that it mistreats staff and engages in securities violations.

Go deeper

FacebookTweetEmailLinkedIn
Investing

Sep 7, 2023

Bill Gates Makes a $96.6 Million Bud Light Bet

by Tyler Hummel Leaders Staff
Cryptocurrency

Sep 6, 2023

Cathie Wood Bets Bullish On Big Tech 

by Tyler Hummel Leaders Staff
Some U.S. companies are finding it easier to hire help, after a rough few years
Hiring

Sep 6, 2023

Promotions Can Increase the Number Of Employees Quitting 

by Tyler Hummel Leaders Staff

Recent Articles

Leadership

Sep 14, 2023

Maladaptive Daydreaming Signs + 4 Ways to Manage Them

Maladaptive daydreaming involves daydreams that interfere with daily functioning

Hiring

Sep 13, 2023

40 Smart Questions to Ask at the End of an Interview to Get Hired

Impress hiring managers with these thoughtful questions

Business

Sep 12, 2023

S Corp vs. C Corp: 7 Factors to Consider When Choosing a Corporate Structure

Entrepreneurs face a pivotal decision when starting a business: the C corp or the S corp

  • Business
  • Leadership
  • Wealth
Join the Leaders Community

Get exclusive tools and resources you need to grow as a leader and scale a purpose-driven business.

Subscribing indicates your consent to our Terms & Conditions and Privacy Policy

Leaders.com
  • Privacy Policy
  • About
  • Careers
  • Cookie Policy
  • Terms
  • Disclosures
  • Editorial Policy
  • Member Login

© 2023 Leaders.com - All rights reserved.

Search Leaders.com