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Ethereum Completes Final Test Before Proof-Of-Stake Merge


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%Ethereum ($ETH), the second biggest %Cryptocurrency by market capitalization, has completed the final test ahead of its upcoming transition to a more energy efficient proof-of-stake protocol.

Know as “the merge,” Ethereum’s switch to a proof-of-stake protocol from the current proof-of-work operating model is viewed as one of the most significant events in the history of cryptocurrencies and is expected to take place this September.

Since its creation a decade ago, Ethereum has been mined using a proof-of-work model that involves massive numbers of computers that use excessive amounts of electricity. %Bitcoin ($BTC) is mined the same way.

Ethereum has been working to transition to a new, more energy efficient model called proof-of-stake. Rather than relying on energy-intensive computers solving complex math equations, the new method requires users to leverage their existing cache of Ether as a means to verify transactions and mint tokens.

The final test before this transition takes place was completed yesterday (August 10). Ethereum’s transition to a proof-of-stake protocol has been repeatedly delayed over the last several years. However, the merge now looks set to take place next month.

Ethereum is used in the development and execution of smart contracts and to facilitate decentralized finance (DeFi) transactions that enable users to move money around without the need for an intermediary such as a bank or other financial institution. As such, Ethereum is viewed as a cryptocurrency that has the most utility or practical application.

Should Ethereum’s transition to a proof-of-stake protocol prove successful, other cryptocurrencies such as Bitcoin are expected to also make the switch.

Anticipation for the merge’s completion has led to a rally in the price of Ethereum, which has gained nearly 80% in the past month, including a 10% gain in the last 24 hours, to now trade at $1,925 U.S.