Ethereum Merge is likely to take place in September and was one of the highly anticipated upgrades in the history of the crypto empire.
The move from PoW to PoS will fundamentally change the way things work. The new configuration makes the network cheaper, faster and more energy efficient. Different criteria apply to proof-of-stake than to proof-of-work. Validators take the place of miners. The entire Ethereum network will undergo a huge change.
This will eventually impact everything powered by the Ethereum network, including Shiba Inu. SHIB, which has emerged as one of the most popular memecoins with a lot of developments planned for the coming year.
As the merger draws closer, here are some of the potential changes that could happen to SHIB and its ecosystem.
Ethereum Merge and Shiba Inu
The Ethereum merge causes the Beacon chain to merge with the mainnet. The main and ultimate change that will be brought about with the merger is the transition of the network from proof-of-work to proof-of-stake. However, this transition will not interfere with the normal functioning and activities of Shiba Inu.
The main change is the process of validating the transactions. Miners will be replaced by validators, which will change the process of how each transaction is validated. The merger claims to be an eco-friendly consensus, and this change may be evident in SHIB transactions as it may cause some delay after the merger. This is only one possibility, as a successful merger may not stand in the way of trades, but may take some time to settle.
Ethereum Sharding and Its Effects
Ethereum Sharding, a work-in-progress expected to be implemented in 2023, is said to improve scalability. Ethereum 2.0 is expected to improve transaction speed and network capacity.
The Ethereum network has a long history of higher gas rates that have disappointed the ETH community. A possible launch of a sharding is likely to lower gas prices, which could be good news.
For all SHIB holders concerned about higher ETH gas rates, Shibarium can be a relief as it can help minimize gas rates with its transaction bundling ability.
These are all just possibilities as the outcome and effects can only be analyzed after Ethereum Merge. In addition, Shiba Inu has undergone greater development throughout the year. The bundle of developments that the SHIB team will deploy is such that it does not expect the merger at all, as it is able to realize its growth on its own.
The larger effects of the Ethereum merger can be analyzed once it goes live in September. The possible outcome of the merge cannot be precisely predicted, as it must be evaluated throughout the process.