Ethereum Merge

It's slim pickings for equity investors looking to trade one of the biggest events in the crypto industry, but there are a few options, including Coinbase ...

[Goldman Sachs](https://www.coindesk.com/business/2022/09/08/crypto-exchange-coinbase-to-benefit-near-term-from-staking-revenues-after-ethereum-merger-goldman-says/) and [JPMorgan](https://www.coindesk.com/business/2022/08/17/coinbase-will-be-meaningful-beneficiary-of-ethereum-merge-jpmorgan-says/) analysts also saw the Merge as potential short-term positive catalyst for Coinbase. CoinDesk is an independent operating subsidiary of [Digital Currency Group](https://dcg.co/), which invests in [cryptocurrencies](https://dcg.co/#digital-assets-portfolio) and blockchain [startups](https://dcg.co/portfolio/). [potential impact](https://www.coindesk.com/tech/2022/08/17/tornado-cash-fallout-can-ethereum-be-censored/) of the U.S. [strict set of editorial policies](/ethics/). This might bring the debate over environmental, social and governance (ESG) aspects of PoW versus PoS to the forefront because it could allow some institutional investors, who were barred from buying tokens that run on PoW, to purchase ether for the first time, Bank of America analysts said in a [report](https://www.coindesk.com/markets/2022/09/12/bank-of-america-says-the-ethereum-blockchains-upgrade-may-lead-to-greater-institutional-adoption-of-ether/) this week. 18, that he prefers [not censoring](https://www.coindesk.com/business/2022/08/18/coinbase-ceo-suggests-exchange-wont-censor-transactions-on-pos-ethereum/) transactions to and from those addresses after the transition to proof-of-stake. Chipmakers such as Nvidia (NVDA) and Advanced Micro Devices (AMD) for the GPUs may also see knock-on effects resulting from the Merge. The company focuses on yield generation and providing infrastructure that supports the Ethereum ecosystem, according to its website. “Staking rewards continue to represent attractive revenue opportunities for long-term investors as they provide returns that are paid in kind,” investment bank Stifel Canada analyst Bill Papanastasiou said in an Aug. “At current [ether] ETH price/staked ETH we estimate COIN could generate $250MM revenue and $60MM contribution profit annualized,” said investment bank Cowen’s analysts led by Stephen Glagola in a Sept. Nevertheless, there are some potential plays in equity markets, crypto exchange Coinbase (COIN) among them, according to Wall Street analysts. “Many institutional investors are looking forward to [trading]

Ethereum is changing: moving from proof of work to proof of stake. But what does this mean to ordinary users? Here's what you need to know.

The move to proof of stake will add deflationary pressure to the cryptocurrency. Over time, it is possible that more ETH is burned than is issued on a yearly basis, but the merge alone will not make this happen. This combined with a drop in the issuance rate will add deflationary pressure to the cryptocurrency—but it won’t automatically make it deflationary. With proof of work, the total amount of miners are rewarded ~13,000 Ethereum per day. “You are giving your stake to someone else, who may decide to attack with that stake,” he said. Validators can be anyone with at least 32 ETH available to “stake,” or pledge, to the network. “ It is doable by anyone with a sufficiently good computer, electricity, and internet,” he said. “It hurts the network rather than helping, and the return on investment at the moment probably isn't worth it.” Right now, the cryptocurrency’s network uses the same consensus network as [Bitcoin](/resources/what-is-bitcoin-four-minute-instant-guide-explainer): proof of work. But this isn’t true—at least not yet, anyway, according to the Ethereum Foundation and experts who spoke to Decrypt. The long-awaited upgrade to the second biggest cryptocurrency by market cap is expected to take place tonight, based on [current estimates](https://ultrasound.money/). [proof of stake](https://decrypt.co/resources/proof-of-work-vs-proof-of-stake).

It's one of the biggest events in the history of crypto and blockchain and although there won't be any literal fireworks when the Ethereum blockchain moves ...

Bitcoin pioneered the proof of work model of establishing consensus across its distributed network. [The Merge](https://www.forbes.com/sites/seansteinsmith/2022/09/13/ethereums-paris-upgrade-starts-today-kicking-off-historical-final-merge-process/)” and it marks the moment that Ethereum moves from a system that requires the “validators” that keep the blockchain running to work through a computing problem to simply staking eth tokens as collateral for the privilege. [Ethereum blockchain](https://www.forbes.com/newsletters/forbescryptoassetadvisor/2022/09/14/ethereums-merge-is-happening-tonight/) moves from proof of work to proof of stake, true believers in eth are still celebrating around the world.

Ethereum, the second-largest blockchain behind bitcoin, is expected to begin a technical upgrade dubbed the "merge." Here are four things investors should ...

"The merge will definitely make Ethereum more secure," says Gorbunov. Due to that barrier, Gorbunov expects Ethereum to become a lot safer. [Ether](https://www.cnbc.com/quotes/ETH.CM=) is valued at about $1,600 per coin as of Sept. And as the supply of ether decreases, the value of individual coins could increase, which would be welcome news for investors. However, this model is expected to be much less energy intensive. Both are algorithms used to allow users to add new cryptocurrency transactions and keep a record of them on a blockchain network.

'Ethereum Merge' could cut the network's energy usage by as much as 99.5%. It could be a sea-change towards sustainability for the crypto-currency industry.

Crypto Firms Prepare to Pause Activity During Ethereum 'Merge' · Exchanges, apps to disable many Ethereum-related functions · Ether-related lending is impacted on ...

Ethereum, the most popular cryptocurrency platform, completed its much-anticipated switch to a more energy-efficient infrastructure.

That new chain, the Beacon Chain, was unveiled in December. A flaw in the Merge could imperil the broader crypto industry, upending start-ups and sending the market into a tailspin. The system is widely known as “mining” because the computers earn payments in cryptocurrency as rewards for the verification service. The process of shifting Ethereum to proof of stake required years of intense study and debate. The upgrade is expected to reduce Ethereum’s energy consumption and set the stage for future improvements that will make the platform easier and cheaper to use. It was a rare moment of joy in a grim year for crypto that saw a devastating market crash drain nearly $1 trillion from the industry, forcing some prominent crypto companies into bankruptcy.

The historic upgrade casts aside the miners who had previously driven the blockchain, with promises of massive environmental benefits.

CoinDesk is an independent operating subsidiary of [Digital Currency Group](https://dcg.co/), which invests in [cryptocurrencies](https://dcg.co/#digital-assets-portfolio) and blockchain [startups](https://dcg.co/portfolio/). “Now the market is roughly 70/30 in favor of this being a positive event for ETH.” [replaced by new ones](https://www.coindesk.com/layer2/2022/04/20/is-ethereum-staking-pool-lidos-growth-an-omen-of-centralization/). In general, it is impossible to predict with certainty how the markets will react to a successful Merge. In crypto markets, the Merge had become an object of speculation since at least mid-July, with traders initially viewing the event as a catalyst for a steep rally in the price of ETH. After around 15 long minutes, the Merge officially [finalized](https://www.coindesk.com/tech/2022/09/14/monitoring-the-merge-what-a-successful-ethereum-upgrade-will-look-like/), meaning it could be declared a success. “Proof-of-work is a mechanism by which you take physical resources and you convert them into security for the network. Edgington pointed to the environmental impact of the Merge upgrade as the benefit he is personally the most excited about. “I like to think of it as kind of like the switch from gasoline to electric.” “I mean, it's kind of hard to defend ‘stickers for grownups’ that emit, by some estimates, a megaton of [carbon dioxide] a week.” From an energy costs perspective, it's like Finland suddenly shut off its power grid, according to [one estimate](https://digiconomist.net/ethereum-energy-consumption). “The metaphor that I use is this idea of switching out an engine from a running car,” said Justin Drake, a researcher at the non-profit Ethereum Foundation who spoke to CoinDesk before the Merge happened.

Ethereum's transition from Proof of Work to Proof of Stake was successfully completed just after 2:30 AM ET, or 5:30 AM GMT at block 15537391.

CoinDesk is an independent operating subsidiary of [Digital Currency Group](https://dcg.co/), which invests in [cryptocurrencies](https://dcg.co/#digital-assets-portfolio) and blockchain [startups](https://dcg.co/portfolio/). [strict set of editorial policies](/ethics/). [According to EtherNodes](https://www.ethernodes.org/merge), 88% of ether nodes were Merge ready and synched in the moments leading up to the event. [quoted on the Bankless podcast as saying](https://www.benzinga.com/markets/cryptocurrency/22/07/28238848/vitalik-buterin-the-merge-isnt-priced-in-yet)“not going to be priced in pretty much until after it happens” traders appeared to disagree. - Steep exchange inflow is usually a sign of traders preparing to sell, however, there isn’t a consensus yet. “But the fundamentals couldn’t be stronger.”

Ethereum transitioned to proof of stake shortly after the network reached “terminal total difficulty” early Thursday.

[some](https://ethereum.org/en/upgrades/merge/) have analogized to changing the engine of a rocket ship mid-flight. The transition is anticipated to be faster, more scalable, and Up until the moment of the merge, ETH was generated by “mining,” an energy-intensive process by which individuals directed huge amounts of computer power at difficult-to-solve puzzles.

The upgrade, known in the industry as the “Merge”, which changes how new transactions are verified on the Ethereum blockchain, completed early Thursday, co- ...

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The blockchain network completed the crypto world's biggest and most ambitious software upgrade to date, according to its co-founder Vitalik Buterin in a ...

The long-anticipated merge is expected to make Ethereum more than 99pc more energy efficient by removing the need for crypto mining.

The upgrade has faced various delays, with Buterin discussing some of the “ [forks in the road](https://vitalik.ca/general/2022/03/29/road.html)” earlier this year. The report described the proof-of-stake mechanism as “the most popular alternative” to the proof-of-work mining system. In proof-of-stake, the need for energy intensive mining is removed. The non-profit Ethereum Foundation has said the upgrade will lead to more scalability, security and sustainability. Using this method, the blockchain network relies on trusted validators to verify transactions. In simple terms, proof-of-work involves solving complex equations to create new coins and validate transactions on a blockchain network.

Like Bitcoin, Ethereum had been approving new transactions on the blockchain with a consensus mechanism called proof of work, whereby “miners” race to solve ...

One popular miner has said he’ll “hard fork](https://gizmodo.com/ether-proof-of-stake-merge-crypto-mining-1849502453)” the network, splitting off the code to preserve a [separate chain](https://fortune.com/2022/09/13/ethereum-miners-fork-merge/) (as [ some did](https://www.sofi.com/learn/content/ethereum-classic-etc-vs-eth/) in 2016 to preserve a previous incarnation of Ethereum). [legal investigations](https://tax.thomsonreuters.com/news/sec-enforcement-director-cites-more-intentional-shift-in-articulating-crypto-analysis/), [plummeting token prices](https://time.com/nextadvisor/investing/cryptocurrency/are-we-in-crypto-winter/), and public exhaustion with [celebrity endorsements](https://www.nytimes.com/2022/05/17/business/media/crypto-gwyneth-paltrow-matt-damon-reese-witherspoon.html) and hype cycles. Buterin has claimed that the Merge makes Ethereum’s network [more secure](https://coinjournal.net/news/the-ethereum-network-will-be-more-secure-after-the-merge-says-vitalik-buterin/), but some experts have suggested that the [opposite](https://cointelegraph.com/news/ethereum-merge-makes-network-more-vulnerable-to-attack-security-expert) is the [case](https://zycrypto.com/ethereum-merge-could-open-the-network-to-attacks-from-bad-actors-says-security-experts/), cautioning users to watch out for “ [replay attacks](https://twitter.com/MakerDAO/status/1567953179333066753)” where scammers can record a transaction on Ethereum’s old chain and repeat it without permission on the new one. In July, Buterin said he’d consider Ethereum only [55% “done” after the Merge](https://fortune.com/2022/07/21/vitalik-buterin-ethereum-merge-ethcc-paris/). The minimum amount you can stake to become a validator is 32 ether (ETH), which is worth about $51,000 as of Wednesday afternoon, although individuals can join together in a [staking pool ](https://ethereum.org/en/staking/pools/)to meet the requirement. Although the mechanism was intended to promote decentralization, in practice individuals or groups with access to significant computer power [have](https://www.technologyreview.com/2022/04/21/1049391/miss-out-crypto-revolution/) dominated proof-of-work mining and [reaped those benefits](https://www.coindesk.com/business/2022/02/16/morgan-stanley-says-ethereum-less-decentralized-ether-more-volatile-compared-to-bitcoin/). That move isn’t likely to have a large impact on the ecosystem unless the big platforms recognize it; [OpenSea](https://cointelegraph.com/news/opensea-says-marketplace-won-t-support-forked-nfts-post-merge), the largest marketplace for NFTs, has [claimed](https://support.opensea.io/hc/en-us/articles/9402429763219-How-will-I-be-impacted-by-the-Ethereum-merge-) it will only support proof-of-stake Ethereum. As of 2:43 ET this morning, Ethereum now uses proof of stake, a way to approve new transactions that [promises](https://ethereum.org/en/upgrades/merge) to cut the blockchain’s energy requirements by 99.9% and usher in a new era for the second-largest cryptocurrency. [been key to Ethereum’s vision](https://www.technologyreview.com/2018/12/13/138651/ethereum-thinks-it-can-change-the-world-its-running-out-of-time-to-prove-it/). Proof of stake, on the other hand, requires “validators” to put up a stake—a cache of ether tokens in this case—for a chance to be chosen to approve transactions and earn a small reward. It has also posed [scaling challenges](https://www.coindesk.com/business/2022/02/16/morgan-stanley-says-ethereum-less-decentralized-ether-more-volatile-compared-to-bitcoin/) for Ethereum: network congestion drove up fees and slowed down processing rates, making the network too expensive for smaller transactions and hard to scale for larger ones. [race to solve hard math problems using huge amounts of computing power and are rewarded for their efforts in crypto](https://www.technologyreview.com/2022/03/04/1046636/ethereum-blockchain-proof-of-stake/).

Ethereum, the world's second most valuable cryptocurrency, has completed a massive software upgrade that its backers claim will slash its carbon footprint.

The merger moves ethereum to a mechanism called “proof-of-stake,” which is much more energy efficient. The world’s most valuable cryptocurrency, bitcoin, was down almost 1%, trading at $20,174, according to CoinDesk. blockchain called the Beacon Chain,” it added.

Popular cryptocurrency blockchain Ethereum has completed its long-awaited switch to proof-of-stake. That upgrade process, better known as 'The Merge', ...

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The decrease in energy consumption takes one criticism of NFTs off the table, which in turn could see Ethereum once again become the most used blockchain for ...

There are still fights ahead for NFTs, including looking at decoupling non-fungible tokens from the vagaries of market forces and for projects to break away from a focus on digital art – read my feature on Case in point, the first NFT created on the post-merge Ethereum is below. OpenSea is the largest NFT marketplace around and has also stated that post-merge it will now only support proof-of-stake NFTs, so your guaranteed all non-fungible tokens from now on are low-cost energy. What the Ethereum merge doesn't mean is cheaper gas fees – the cost you're charged to register an NFT on the blockchain. So what is the merge and why does it matter that Ethereum has changed from proof-of-work to proof-of-stake? The Ethereum merge has finally happened and it could be the single biggest change to how we create and use NFTs, ever.

At 6:42 A.M. Coordinated Universal Time (2:42 A.M. EDT), the Ethereum blockchain merged with a special-purpose decentralized ledger called the Beacon Chain, ...

The exact time is [yet to be announced.](https://twitter.com/EthereumPoW/status/1570323388358602752) [tweeted](https://twitter.com/EthereumPoW/status/1569428021437935617) on Sept. Miners are being replaced with validators, who pledge, or stake, ether tokens as collateral to verify transactions and accrue interest on the staked assets as a reward. Ethereum underpins the vast majority of Web3 applications such as decentralized finance protocols and non-fungible tokens (NFTs), as well as ether, the second-largest cryptocurrency with a $195 billion market value. The approach has drawn widespread criticism from crypto-skeptics and environmentalists because of its immense energy usage—Ethereum’s carbon footprint Since its inception, Ethereum has been based on the proof-of-work system for running a blockchain.

The second biggest blockchain has changed the way it validates transactions on its decentralised ledger.

The original cryptocurrency, which still accounts for about a third of the value of the entire sector, is unlikely to ever switch away from proof of work. The underlying aim of ethereum has always been to operate as a “world computer”, letting users write programs that can be run “on the blockchain”. That is the innovation that allowed creations like smart contracts, NFTs and decentralised finance to be built but it is also a very inefficient way to run programs compared with conventional “centralised” approaches. Attacking the network as a whole is still expensive, but only because an attacker would have to buy more ethereum than the rest of the stakers combined. Until Thursday, ethereum used a system called “proof of work” to determine the validity of transactions on its blockchain and ensure everyone in the community had consensus about who owned what cryptocurrency. That successfully made the system very expensive to attack, since any malicious miner would have to buy more energy and chips than the entire rest of the network combined – but also made it incredibly wasteful.

The move will transition the Ethereum blockchain from proof-of-work to proof-of-stake, which is less energy intensive.

The Ethereum... The move will transition the Ethereum blockchain from proof-of-work to proof-of-stake, which is less energy intensive. The move will transition the Ethereum blockchain from proof-of-work to proof-of-stake, which is less energy intensive

Two major news events could rock the crypto market this month. Here's what experts think, and why it matters for crypto investors.

[ethereum](https://time.com/nextadvisor/investing/cryptocurrency/price/ethereum-eth/) [merge](https://time.com/nextadvisor/investing/cryptocurrency/ethereum-merge-price-this-week/) took place on Thursday, completing one of the largest events in crypto to date. One thing’s for sure: If the last couple years have taught us anything, it’s that crypto prices are highly volatile and difficult to predict. “We believe bitcoin should ultimately be used as a proxy for direction in the broader crypto market,” Kruger said. The market is particularly volatile right now, as inflation numbers send crypto and stock prices tumbling ahead of another likely rate increase next week at the Fed meeting. [saw similar tumbling](https://time.com/nextadvisor/investing/latest-stock-market-news/) following the CPI release, and the crypto market has increasingly tracked the stock market in recent months. “Given how things have been correlating, and considering this latest inflation data, we expect more downside pressure in crypto as investors are forced to contend with the reality of higher for longer monetary policy that strains growth prospects and weighs on sentiment. The Fed is essentially attempting to cool down the economy in order to rein in rising prices. “There’s no doubt the CPI report has triggered a fallout in risk assets and crypto markets by extension,” said Joel Kruger, Market Strategist at LMAX Group, a financial technology firm headquartered in London that operates foreign currency and crypto exchanges. The ethereum merge has been highly anticipated in the crypto community, and it was finally completed in the wee hours of the morning on Thursday. The change could cut ethereum’s electricity expenditure by an estimated 99.95%, [according to the Ethereum Foundation](https://ethereum.org/en/upgrades/merge/#main-content). Among other concerns, unforeseen bugs in the blockchain could cause outages, which could lead to significant price drops. [Bitcoin’s](https://time.com/nextadvisor/investing/cryptocurrency/price/bitcoin-btc/) prices have gyrated similarly.

Ethereum's core developers already have their eyes set on the network's next upgrade, Shanghai. What it will consist of, however, is up for debate.

[rolling collections of transactions into a unit](https://decrypt.co/resources/what-are-ethereum-rollups-scaling-solution-cut-transaction-costs) that is presented to the Ethereum blockchain as a single transaction. Van Der Wijden is confident though that the upgrade will occur within the next year. “Some of the more research-focused people don't really consider that all of this has to be implemented and tested,” said Van Der Wijden. There have been no updates made to the EVM in over two years, in part because incorporating those improvements into the merge would have created a massive headache for developers. Staking ETH will allow these entities to generate and collect new ETH as a reward for proving the computing power necessary to validate transactions and secure the network. And once again, the decision will have multi-billion dollar implications.

The price of ether fell on Thursday after the Ethereum network completed its migration to the proof-of-stake consensus mechanism.

"On the other side, asset managers and holders are actually positioning themselves ahead of a longer-term game," he added. Some analysts have said they expect to see that trade unwind after the merge. Still, the market remains largely macro-driven. It seems likely, then, that if the Merge turns out to have a positive effect on Ethereum's price action, the upside may not be sustainable." Traders had expected to see a decline in the price following the transition late Wednesday night. In August it fell almost 9.3%, compared to bitcoin's almost 17% loss.

The upgrade, known as the Merge, will slash the chain's carbon emissions by more than 99% and, just as importantly, shows that a rag-tag band of crypto ...

[Mainnet](https://mainnet.events/agenda) starts this week in Manhattan. The event has already emerged as New York’s pre-eminent crypto conference, and organizers have just added a trio of A-list speakers: [Coinbase](https://fortune.com/company/coinbase) CEO Brian Armstrong; Binance CEO CZ; and the founding genius of Ethereum, Vitalik Buterin. A long-time crypto skeptic (Smith describes “the vast majority of web3 uses [as] a form of unregulated financialization), he makes the case that instability in places like Russia and China is likely to create waves of refugees looking to flee with their assets. The “wen” reflects the crypto world’s penchant for goofy phonetics, and is most commonly found in the phrase “wen moon?” that asks when prices will soar. "Crypto-facilitated capital flight from China and Russia would likely strengthen the dominance of the dollar, and/or of the currencies of other rich countries allied with the U.S. [noted](https://twitter.com/CamiRusso/status/1570439681107443716), the devs changed the proverbial jet engine mid-flight and did it without a hitch. He suggests dollar-backed stablecoins will be most popular but that, in time, we could see migrants snapping up “stablecoins backed by real estate.” But for this week at least, it is enough for the Ethereum community to take a well-deserved victory lap. Let’s hope the next wave of Ethereum innovation is based around building products that will be truly useful to ordinary people and show them why blockchain is such a great technology in the first place. The top priority should be the exorbitant gas fees that make legacy payment and computer networks look cheap in comparison—Ethereum is never going to catch on if the first time someone tries it, the network dings them for $50 or more in fees. The reaction of the market was decidedly more muted, however, as the price of Ethereum slumped as much as 7% after the merge. The upgrade, known as the Merge, will slash the chain’s carbon emissions by more than 99% and, just as importantly, shows that a rag-tag band of crypto developers can get shit done.

Ethereum now spews out less carbon dioxide than a few hundred U.S. households, according to a report.

[help the world transition to cleaner energy](https://www.coindesk.com/layer2/miningweek/2022/03/26/can-crypto-miners-make-the-world-greener/). CoinDesk is an independent operating subsidiary of [Digital Currency Group](https://dcg.co/), which invests in [cryptocurrencies](https://dcg.co/#digital-assets-portfolio) and blockchain [startups](https://dcg.co/portfolio/). The amount of energy guzzled by PoW, which is how [Bitcoin](https://www.coindesk.com/price/bitcoin/) and other blockchains still operate, has come under [extreme scrutiny](https://www.coindesk.com/policy/2022/09/08/crypto-mining-energy-implications-need-further-study-white-house-report-says/) from lawmakers and policymakers around the world. [strict set of editorial policies](/ethics/). Investors barred from buying tokens that run on PoW systems may be able to buy ETH, Ethereum’s native token, after the PoS switch, Bank of America said in a As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of [stock appreciation rights](https://www.investopedia.com/terms/s/sar.asp), which vest over a multi-year period. [report](https://www.coindesk.com/markets/2022/09/12/bank-of-america-says-the-ethereum-blockchains-upgrade-may-lead-to-greater-institutional-adoption-of-ether/) this week. The decrease means the network now spews out less carbon dioxide (CO2) than a few hundred U.S. Bitcoin still uses PoW, drawing criticism from environmentalists and policymakers. household uses in 6.7 days, according to [crypto miners](https://www.coindesk.com/policy/2022/09/12/white-house-crypto-mining-report-draws-praise-from-advocates-and-critics-alike/) from running Ethereum, doing away with a system called [proof-of-work](https://www.coindesk.com/learn/2020/12/16/what-is-proof-of-work/) (PoW) in favor of a [proof-of-stake](https://www.coindesk.com/learn/2020/12/30/what-is-proof-of-stake/) (PoS) mechanism, which doesn't require vast server farms running complex computations and thus consumes a lot of electricity. [Ethereum](https://www.coindesk.com/price/ethereum/)’s energy use by 99.988% and carbon-dioxide emissions by 99.992%.

Ethereum's merge, which transitioned to an eco-friendly consensus model, was successfully completed overnight. A report from the Crypto Carbon Ratings ...

It’s just not tied to Ethereum itself anymore, which should help the network shed the [environmental concerns](https://decrypt.co/109623/ethereum-merge-ends-environmental-debate-nfts) that will continue to be linked to Bitcoin and other such cryptocurrencies. [Digiconomist](https://digiconomist.net/ethereum-energy-consumption), a site from noted crypto critic Alex de Vries. Whether ETHW retains long-term interest remains to be seen, but in the short term, some former Ethereum miners hope to profit in that space. According to an initial report out this morning, [Ethereum](https://decrypt.co/resources/what-is-ethereum-quickly-explained-four-minute-guide)’s energy needs and carbon footprint have both fallen even more than anticipated. As a result, Ethereum’s estimated annual CO2 emissions have dropped from over 11 million tons to just under 870—less than the combined total of 100 average American homes, It also suggests the blockchain's carbon footprint has dropped by just over 99.99% as well.

Until now, both ethereum and bitcoin were running on proof-of-work, which requires high-powered computers to verify transactions and “mine” new coins across a ...

[Sign up](https://www.cnn.com/specials/nightcap?source=article) and you'll get all of this, plus some other funny stuff we liked on the internet, in your inbox every night. The unions have agreed not to strike while votes are being tallied, which means the negotiators have bought themselves a couple of weeks. Even though it's technically possible for bitcoin to alter its infrastructure, as ethereum just demonstrated, "bitcoiners view proof-of-work as a superior way of securing the network." In short, the merge would put the core infrastructure of ethereum on a more environmentally sustainable path, reducing its carbon footprint by 99%, according to the nonprofit behind the network. The workers who operate America's freight trains were at their breaking point, often working 14 days in a row, with no sick days (paid or unpaid) and constant fear of termination if they miss work for medical reasons. Similarly, workers at Kellogg continued to strike in December after negotiators thought they'd reached a settlement. (OK, most nights — we believe in a four-day work week around here.) Here's the deal: It's been a rough year for cryptocurrencies and their legions of fans. Per Biden's statement: "These rail workers will get better pay, improved working conditions, and peace of mind around their health care costs — all hard-earned." - (Ugh, I realize that still might sound like sci-fi, but the longer explanation would seriously put everyone to sleep. - But medical time off won't be paid. Bitcoin, by far the largest token, has fallen roughly 70% from its high nearly a year ago.

“Graphics processing units (GPU) mining is dead less than 24 hours after the Merge,” tweeted Ben Gagnon, chief mining officer at bitcoin miner Bitfarms (BITF).

CoinDesk is an independent operating subsidiary of [Digital Currency Group](https://dcg.co/), which invests in [cryptocurrencies](https://dcg.co/#digital-assets-portfolio) and blockchain [startups](https://dcg.co/portfolio/). [strict set of editorial policies](/ethics/). Alongside a rising hashrate, however, is rising difficulty, meaning miners are less likely to successfully mine a block and reap the block reward. [what households in the U.S. However, the software update – dubbed the Merge – also meant that miners were no longer needed to secure the network, and so rig operators moved their machines to other PoW blockchains. [proof-of-stake](https://www.coindesk.com/learn/2020/12/30/what-is-proof-of-stake/) from [proof-of-work](https://www.coindesk.com/learn/2020/12/16/what-is-proof-of-work/) in order to boost efficiency and lower energy consumption.

Ether was down more than 9% at one point as traders decided to “sell the fact” following a nearly seamless Ethereum Merge.

CoinDesk is an independent operating subsidiary of [Digital Currency Group](https://dcg.co/), which invests in [cryptocurrencies](https://dcg.co/#digital-assets-portfolio) and blockchain [startups](https://dcg.co/portfolio/). [Digital Asset Classification Standard (DACS)](http://coindesk.com/indices/dacs), developed by CoinDesk Indices to provide a reliable, comprehensive and standardized classification system for digital assets. [strict set of editorial policies](/ethics/). [Meet 8 Ethereum Developers Who Helped Make the Merge Possible:](https://www.coindesk.com/tech/2022/09/15/meet-8-ethereum-developers-who-helped-make-the-merge-possible/)Ethereum’s impending shift to proof-of-stake could not have happened without researchers, developers, volunteers and many, many client teams. [The Ethereum Merge Is Done, Opening a New Era for the Second-Biggest Blockchain:](https://www.coindesk.com/tech/2022/09/15/the-ethereum-merge-is-done-did-it-work/)The historic upgrade casts aside the miners who had previously driven the blockchain, with promises of massive environmental benefits. [Merge](https://www.coindesk.com/learn/what-is-the-merge-and-why-has-it-taken-so-long/), sharply narrowed as Ethereum completed its technology transition without a hiccup. [Vitalik Buterin Says Ethereum Merge Cut Global Energy Usage by 0.2%, One of Biggest Decarbonization Events Ever:](https://www.coindesk.com/business/2022/09/15/vitalik-buterin-says-ethereum-merge-cut-global-energy-usage-by-02-one-of-biggest-decarbonization-events-ever/)Ethereum now spews out less carbon dioxide than a few hundred U.S. [Ether Futures Market Discount Evaporates After the Merge:](https://www.coindesk.com/markets/2022/09/15/ether-futures-market-discount-evaporates-after-the-merge/)The negative spread between futures and spot prices has narrowed from $20 to almost zero following the Merge. 12 Market Wrap](https://www.coindesk.com/markets/2022/09/12/market-wrap-ether-falls-despite-merge-anticipation-bitcoin-climbs-as-investors-await-inflation-data/), funding rates over the last 30 days continue to be negative, spiking directly ahead of the Merge. [ETH](https://www.coindesk.com/price/ethereum/)) price stability that prevailed after Ethereum's shift to a more energy-efficient ["proof-of-stake"](https://www.coindesk.com/learn/2020/12/30/what-is-proof-of-stake/)network suddenly evaporated as ether slid 9.1%, its worst day since late August. Instead, there’s likely a [“sell the fact”](https://www.coindesk.com/tech/2022/09/15/pivotal-ethereum-merge-brings-sell-the-fact-price-move-in-crypto-markets/) price move in play as an “Ethereum Merge” trade unwinds. [ETH](https://www.coindesk.com/price/ethereum/)) fell 9% on above-average volume.