Experts in the field describe how the Ethereum Merge would affect industry adoption for commercial use cases
While most current commercial use cases may not be impacted by The Merge, experts predict that it will fundamentally alter how businesses perceive Ethereum. The Ethereum Foundation claims that The Merge will boost the energy efficiency of the Ethereum network by around 99.95% and open the door for future scaling alternatives like sharding. The potential reward is enormous. According to one estimation, it appears as though Finland’s electricity grid has abruptly been turned off.
The network, which supports a $60 billion ecosystem of cryptocurrency exchanges, lending organizations, non-fungible token (NFT) marketplaces, and other apps, will become more secure and scalable, according to Ethereum’s developers
Staking solutions, according to Chris Kline, CRO, and co-founder of Bitcoin IRA, is intended to attract additional users to the network. However, during periods of high usage, ETH speed and gas pricing led to network congestion and a negative user experience for some. The consensus-driven allure of this new technology will be easier to reach thanks to this improvement, which will lessen entry barriers for consumers. By encouraging additional staking nodes, greater consensus forms and developers may use the network effectively. According to Kline, consensus facilitates decentralization and provides everyone a say in network management, easing the on-ramp for individuals wishing to contribute. The Merge will fundamentally alter how businesses view Ethereum, even though it may not have an impact on the majority of current commercial use cases. In addition to actual energy savings, the switch to proof-of-stake increases Ethereum’s security and lays the way for potential future advancements. The top priorities on the agenda are significant network capacity enhancements and structural changes that will enable a significantly higher device participation rate. The transition to proof of stake will usher in a new phase of competitiveness among blockchain ecosystems. As a result of the merger, Ethereum’s hegemony will be further cemented, and the Layer 2 networks that exist to support Ethereum’s scaling will become the new basis for the competition of commercial use cases. According to Paul Brody, EY’s global blockchain leader, layer 2 networks will be necessary to accommodate a new generation of privacy applications as well as high-volume financial and supply chain transactions. According to experts, it’s crucial to view the Ethereum Merge as a chapter in Ethereum’s bigger, continuing history rather than as a stand-alone event. The switch to proof-of-stake (PoS) mitigates climate concerns, hopefully encouraging more layer-1s to follow suit and lowering this common barrier to entry for mainstream adoption of Web3. This is reason enough to celebrate this moment in Web3 history. Marek Olszewski, co-founder of Celo, president of Valora, and partner at cLabs says, “I know that these Web3 milestones, such as light clients, single-slot finality, and usability, are being taken seriously in Ethereum’s evolution following the Merge (or ETH2) — it is our continued responsibility as builders to make transacting on blockchains easier for real-world users of all experience levels. Experts said that the likelihood of a 90% reduction in the pace of ETH supply inflation makes the Ethereum merger a once-in-a-lifetime chance. This event has been termed the “triple-having” because of the drastic reduction in the ETH supply that is still being issued. In light of everything, for the benefit of the consumers, the network development brought forth by Merge is anticipated to raise industry interest in Ethereum for the sake of consumers. In addition, Rhodes thinks that eliminating the main criticism of sustainability will promote more activity on the Ethereum Mainnet, even if only as a base layer of protection. The ETH integration “sets things up for a deeper enterprise and business evaluation sooner rather than later” because it is a crucial step in bringing Ethereum’s vision to life, he added.
“ETH has the potential to become the Ultrasound money of the future with the promise of a decline in issuance and the ongoing burning of ETH supply, “Vice President of MetaTope, Walker Holmes, said. “Enormous potential also carries great risk, which leads to further conjecture. Although the market is leaning toward the Eth merger’s success, significant problems with the switch to proof of stake might have disastrous effects on the short-term prognosis for ETH pricing”, he adds.