Moving the blockchain from “proof of work” to “proof of stake” could be a game changer, but does not come without concerns.
A collection of ethereum tokens.
Photographer: Chris Ratcliffe/BloombergVictoria Vergolina
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For crypto enthusiasts, a big change is in the air - and it’s not just a change of seasons. It’s the phrase on everyone’s lips: The Merge. It would be the Ethereum blockchain’s most ambitious software upgrade ever, coming after of delays. This upgrade would represent a fundamental overhaul of how the Ethereum blockchain works, and would - if all goes according to the very ambitious plan - represent a shift away from the energy-intensive approach known as “proof of work.” In its place, Ethereum would adopt the “proof of stake” model, which proponents say is significantly more energy efficient and skeptics worry is less secure.
So: What does the Merge mean for users? What are the risks associated with this switch? And why is it finally happening now, after all these years? Bloomberg Crypto reporters Olga Kharif and David Pan join this episode to tackle these questions.
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