One of the hottest and most exciting topics we hear about today is transition of the Ethereum network from Proof-Of-Work consensus mechanism to Proof-Of-Stake model. One of the most important issues in the world of cryptocurrencies is consensus. To reach a consensus, mechanisms have been presented that are necessary for the integrity and security of blockchain networks and will affect their performance.
In POW you depend on nodes and miners who use expensive and specialized equipment that is often expensive and time consuming. As a result, it can be seen that this system needs a lot of investment. Bitcoin, as the father of cryptocurrencies, uses this mechanism.
At the opposite end of POW is the POS mechanism, where anyone can stake some of their capital into the network to be chosen to verify and validate transactions on that network. Of course, in the end, depending on the amount of capital staking, you will earn rewards.
The Ethereum network has experienced forks before. By presenting a fork, they created division in their community. As a result, two currencies, Ethereum Classic and Ethereum, were created.
If Ethereum is transferred to the POS system, you can become a validator by staking minimum of 32 ETH. This transfer makes Ethereum network transactions faster and cheaper.
I think both mechanisms are solutions to different problems, but I strongly believe that Ethereum is moving in the right direction.
Personally, I believe that the environment should be preserved and nature should be loved, and of course I also consider blockchain and digital currencies to be fantastic and a wonderful world. Therefore, I do not choose both and I welcome all solutions that help reduce energy consumption.
The cost of transactions and of course their speed is also another issue that needs to be resolved. Ethereum transaction fees are very high and I think Ethereum needs this merge to do what it does.
Anyway, Ethereum is traveling to the POS mechanism, and although the majority of the Ethereum community supports this merge, there is a split and we may see another split!
One of the most painful events I have encountered using Ethereum was that although I paid for the gas, the transaction failed, but I have never encountered this in POS networks.
I would love to hear what you think about this integration as well. I would like to know what you think. Do you think this will help Ethereum? What name would you suggest for Ethereum POW if the merge happens?