The largest smart contract blockchain, Ethereum (ETH-USD), will kick off the final phase of its long-awaited “Merge” between September 13th-15th. Upon the completion of the Merge, Ethereum will officially transition from the Proof-of-Work (PoW) consensus mechanism to the Proof-of-Stake (PoS) consensus mechanism. Ethereum’s transition towards PoS began with the Beacon Chain in phase 1, which kicked off in December 2021. Proof-of-Work (PoW) is the original consensus mechanism, first popularized by Bitcoin (BTC-USD). However, the PoW mechanism has faced criticism for its high environmental toll. PoW is extremely energy intensive compared to other consensus mechanisms, requiring high-end infrastructure and a steady electricity supply.
