The second cryptocurrency in the world is preparing for a major transition for its blockchain networks. After a last positive test on Wednesday and a good signal sent to the market, Ether shows a rise in its price to 13% in 24 hours.
As The Merge approaches, this major update to the Ethereum blockchain around September 19, Ether is gaining value. The price of the token has indeed climbed 13% in 24 hours, a record level since June, points out CNBC. At 2:20 p.m. (Paris time), its value thus reached 1927 dollars, according to data from CoinMetrics.
This good performance comes the day after a simulation of this update carried out on test networks. This last general rehearsal, organized in the night from Wednesday to Thursday, ended in success.
A very good signal for cryptocurrency before the definitive migration of its blockchain networks to a new consensus mechanism. Concretely, Ethereum will move from a proof of work (PoW) to a proof of stake (PoS), a new mechanism which will make it possible to obtain a distributed consensus.
Proof of Work and Proof of Stake: What’s the Difference?
As a reminder, the proof of work consists in putting in competition tens of thousands of computers which will work on the same thing at the same time, by validating and clearing the blocks.
With proof of stake, there are no more cryptographic puzzles to decipher. To guarantee the security of the blockchain, candidate miners put their Ether tokens in a common pot and it is according to a draw system that they are chosen to validate the transactions.
99% energy saving
“Unlike proof-of-work, validators do not need to use significant computing power because they are randomly selected and do not compete,” ethereum.org reads. With this new validation mode, Ethereum should therefore consume 99% less energy. This shift on which the blockchain software platform has been working for seven years should be implemented around September 19.