News hardware The Merge disappointing? Here are 3 cryptos that could steal the show from Ethereum after the update
Although Ethereum’s energy transition has gone well, the second cryptocurrency has multiple competitors. Under recent regulatory threats to Ethereum, several of its alternative cryptos could recoup some of the community, disappointed with The Merge update.
- The Merge goals for Ethereum
- Solana (SOL), a strong competitor for Ethereum
- The return to Bitcoin after The Merge
- Ethereum classic, ETHW and other forks to the rescue of miners
The Merge goals for Ethereum
Since September 15, Ethereum has made a major change to the operation of its network. The second ranked cryptocurrency is no longer based on proof of work, therefore mining is now done without graphics cards. Indeed, with The Merge, Ethereum moved to proof-of-stake. The network therefore does without a drastic amount of electricity, since to mine, it is enough to hold 32eth. So, after this event, Ethereum officially reduced its carbon footprint by more than 99%.
If the energy objectives were appropriate with this transition, they did not necessarily represent the primary motivation. With The Merge, Vitalik Buterin also wants the Ethereum network to become more efficient than before. Specifically, among the objectives are:
- Increase the speed of your network
- Faster transactions
- More security
- Lower transaction fees
Thus, the switch to proof of stake is also a way of responding to competing cryptocurrencies that have gained momentum during the last crypto speculative bubble.
Solana (SOL), a strong competitor for Ethereum
In the crypto ecosystem, competition is fierce. Many projects are born every day with the aim of dethroning the first cryptos in the ranking. If it is complicated to take the place of Bitcoin, the Ethereum cryptocurrency is a prime target. Thus, several “Ethereum killers” are born each year.
Although Ethereum is the first cryptocurrency to make such a major transition to proof of stake, other cryptocurrencies have been born with this feature – with the aim of offering an alternative version to Ethereum. This is the case of Solana, a cryptocurrency launched in March 2020.
The Solana network takes the proof of stake system by merging it with the proof of history (PoH). Without going into technical details, the proof-of-history relies on timestamping to lighten the network.
Thus, Solana can provide uses similar to Ethereum in an “enhanced” version. Its protocol notably increases the speed of transactions, increases the number of transactions supported by the network and reduces fees.
With NFT integration and the presence of decentralized applications (DApps), the use of Solana does not differ greatly from Ethereum – which makes Solana a direct competitor of the second cryptocurrency.
The return to Bitcoin after The Merge
Beyond cryptocurrencies using the same mode of operation as Ethereum, the recent event could get crypto enthusiasts back on Bitcoin.
Indeed, many believe that the operation of the first cryptocurrency remains the best. While Ethereum no longer works proof of work, Bitcoin has no plans to change how it works. An argument that prevails for users who put decentralization at the center.
Also, mining enthusiasts using hardware such as graphics card RIGs or ASICs, could choose to turn to Bitcoin to continue using their machines.
However, Bitcoin is not the only cryptocurrency to offer traditional mining…
Ethereum classic, ETHW and other forks to the rescue of miners
The first to be unhappy with this update are surely the miners. Indeed, several of them can no longer use their mining equipment following the transition from The Merge.
Called fork, these cryptocurrencies are born when part of the crypto community, in this case Ethereum, does not agree with the changes made to the blockchain. These networks therefore generally resume their original operation.
With The Merge, Ethereum classic (ETC) or even on EthereumPOW (ETHW) could recover since the crypto miners have the possibility of continuing to amortize the material.