Proof of Stake, Ethereum and mining: some terms that often come to mind these days. Can you no longer see the (crypto) forest for the trees? Anycoin Direct would like to provide some clarity. This week about Ethereum: what influence, for example, has ''The Merge'' had on the price of the digital currency?
For the origins of Ethereum, Anycoin would like to take you back to the year 2013. On November 27 of that year, the White Paper was published by founder Vitalik Buterin. He developed the technology to build apps and organizations, hold assets, execute transactions and communicate without control from a central authority. One of the most important USPs: with Ethereum you decide which personal data you share on their network.
Ethereum's cryptocurrency is ETH, which you can use to pay for a number of things on the Ethereum network. The currency is decentralized and completely transparent. So it can be sent immediately, digitally, to anyone in the world. This involves connecting transmitter and receiver without a central authority. So there is no company or bank that can decide to print more ETH or change the terms of use.
Just like Bitcoin, Ethereum is also rooted in blockchain technology. This is a database of transactions that is updated in a chain and shared across different computers in their network. When a new series of transactions is added to the chain, it is called a block, which is where the name blockchain comes from.
September 15, 2022 marks an important moment in Ethereum's digital history. The so-called “Merge” took place on this date. The term refers to the merging of the current Ethereum blockchain with the future Ethereum 2.0. From block 15537383, Proof of Work was disabled and replaced by proof of stake. To make a long story short: this is much more energy efficient. Bee Proof of work it is the computer power that determines whether a miner will end up as a winner and will be rewarded with crypto coins. At PRobbery or Stake the deposit determines whether someone can add a new block to the blockchain.
Want to know more about the mining phenomenon? Read here: ''Anycoin Direct explains: Bitcoin halving''.
Through the Merge means that mining ETH will increasingly become a thing of the past. This means that the total amount of tokens in circulation will shrink annually. Due to the principle of supply and demand, it is of course very interesting for investors...
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