MoonXBT Pays Close Attention to Ethereum Merge and the Post-Merge Landscape
Dubbed as the “making of the year” for both the blockchain and crypto industry, the Ethereum merge has garnered huge attention from developers, investors both retail and institutional, project entrepreneurs, crypto exchanges, and so forth. Upon the merge, the consensus algorithm of Ethereum, i.e. how the validators of the Ethereum blockchain are decided, will morph from Proof of Work ( PoW) to Proof of Stake (PoS).
The change will allegedly reduce the energy consumption of the Ethereum blockchain by almost 90%. Moreover, it will see a reallocation of resources and benefits in the Ethereum Ecosystem. Current Ethereum holders, however, will not notice the significant change since their assets will still lie in their wallets or accounts peacefully with the change happening underlying.
As an innovative exchange, MoonXBT is paying close attention to the event for two major reasons: on the one hand, to guarantee the benefits of the users during the merge; on the other hand, to capture future opportunities for the users on the platform.
Suspension of ETH withdrawals
MoonXBT will suspend withdrawals of ETH and ERC-20 tokens approximately 30 minutes before the merger occurs. During the suspension, other than withdrawals, the other utilities of ETH and ERC-20 tokens remain normal.
ETH and ERC-20 token transactions in both the spot trading market and margin trading market are not affected. But investors are advised to take adequate risk measures and account for the uncertainties that may arise in the market during the merge. MoonXBT will also take additional protective measures during this period including but not limited to adjusting the trading pair margin and leverage.
The exact time when the merge will be decided by TTD, Terminal Total Difficulty of Ethereum blockchain. It is preset that once the accumulated block difficulty reaches 58750000000000000000000, the merge will begin and the transactions validated by PoW miners will then be rejected.
During the merge, ETH transactions may face risks like scams asking users to exchange their holding assets for new tikers like ETHX, or technical bugs, or confusion caused by Ethereum blockchain forks. And therefore, MoonXBT thinks it is in the best interests of the investors to keep their assets where they are during the first half of an hour when the merge happens.
The Post-Merge Landscape
As a leading social trading exchange, MoonXBT has seen active conversations regarding the trends of ETH after the merger within its community. And MoonXBT is also paying close attention to the post-merge landscape.
According to MoonXBT community member Martin Joko, the community overall tends to believe in the uptrend ETH merge will bring. First and foremost, the transition from PoW to PoS will put a lot of ETH into the staking which will result in the reduction of circulation of ETH to some extent. More importantly, many see Ethereum merge as a new ignite to a new bull run of crypto given how it can affect the growth of other decentralized applications.
Any crypto user who has basic knowledge about Ethereum knows that it has been using the same consensus algorithm as Bitcoin which is PoW, proof of work. This consensus algorithm relies heavily on miners and is very energy consuming. It also limits the speed and scalability of Ethereums’ network making it hard to support large numbers of DApps at the same time efficiently.
According to Martin, by changing to Ethereum 2.0 which adopts a PoS consensus algorithm, the mainnet will be potentially faster, less costly, and more environment friendly which may expedite the growth of the blockchain and crypto industry.
However, at the current state, whether the merge will be complete successfully or whether it will have a positive impact on the entire crypto industry remains to be seen. MoonXBT’s social trading platform offers a forum for community members to further exchange ideas on future trends.
For more information, please visit https://www.moonxbt.com/
Follow MoonXBT for more updates: