On Wednesday, July 18th, the Ethereum blockchain will undergo a hard fork to create an alternate network with its own cryptocurrency, ether classic (ETC). This move was largely made due to disagreements in the community regarding the future of the platform and how it should evolve. In this article, we’ll discuss why such hard forks are good for everyone and what this one means for Ethereum Merge and its users.
What Is Ethereum Merge?
Unlike Bitcoin, Ethereum’s architecture consists of transactions and smart contracts that can be supported by a variety of different consensus mechanisms. Ethereum’s foundation supports one main chain, with the ability to switch consensus mechanisms through a process called merge mining. The core logic behind merge mining is simple: if two different networks are compatible with each other, there’s no reason why they can’t both be mined at the same time.
The idea of Ethereum merges mining was conceived by Alexey Akhunov and Danny Ryan in early 2016. At that time, only two blockchains were merge-mined with Ethereum – Monero, and Zcash. More recently, SiaCoin became the third cryptocurrency to be merge-mined with Ethereum. SiaCoin’s unique approach to distributed storage offers significant advantages over traditional cloud storage providers like Amazon Web Services (AWS) or Microsoft Azure.
While many people believe that Ethereum’s version of merge mining could become a turning point in blockchain tech, others are concerned that it will create problems. As is often true in life, things aren’t so simple. There are some valid concerns about whether this is the right direction for Ethereum to take. However, we believe that this innovation might pave the way toward new types of financial agreements such as credit contracts and derivatives.
In our opinion, any company considering merging mining should understand how it works before making any decisions. For example, on October 25th, 2017, all miners using Parity 1.8 lost access to their funds when Parity Technologies accidentally deleted critical code governing multi-signature wallets created after July 20th, 2017.
For many crypto enthusiasts, Ethereum’s move towards merging mining with SiaCoin and Monero represents an important step in blockchain tech. With that in mind, it’s important to remember that it could still take years before we see any results from Ethereum’s experiment. Regardless of how things play out, however, there are a few lessons to be learned here. First of all, many people believe that mining will always be a core element of cryptocurrencies – but maybe not everyone is right. What do you think?
What Does It Mean For Investors?
As long as you have control of your private keys, which let you access your Ethereum-branded digital coins, then you’ll have access to both blockchains, and will be able to trade back and forth between the two. On top of that, there’s no longer any risk associated with a single blockchain network becoming corrupted or crashing. If one system goes down or doesn’t perform well enough to keep up with demand, investors can transfer their funds into the other blockchain network if they want to.
What does it mean for business?: For businesses, Ethereum Merge means two different, but equally advantageous things. First, there’s a strong possibility that many of your transactions won’t require mining fees at all. Instead of competing with other miners in order to complete a transaction and collect their respective mining rewards, network users will simply pay transaction fees. If a currency needs to stay competitive, lower transaction fees are better because they’ll save you money over time.
What does it mean for business?: Businesses that use Ethereum in their transactions will also see an advantage from Ethereum Merge. The alternative isn’t one blockchain over another, but two networks that can be utilized at once. It makes sense to expand your transaction options and reduce friction when moving funds around. Plus, if a single blockchain fails, you have access to another. If you don’t see any benefits of Ethereum merge or Ethereum merge benefits then why would you even bother with it?
What does it mean for business?: Ethereum merge gives businesses an added layer of security and protection when completing transactions. It doesn’t matter if you’re an investor or a business, both parties are better off with multiple blockchain networks rather than one. Regardless of your opinions on what happened between Ethereum and Ethereum Classic, it’s a good thing that both blockchains can be used together.
How do I make money on the Ethereum split?
If you own Ethereum, congratulations! You now have an even more valuable investment. However, many people are understandably uncertain about what this means and how they can make money on the Ethereum split. Fortunately, there are a few ways to profit from Ethereum Merge by buying or selling them, trading or mining the coins.
How do I make money on Ethereum Merge?
As you can see, Ethereum has been increasing in price since the beginning of 2017. And, if it keeps its upward trend like Bitcoin did when it split, you’ll be sitting on a gold mine! So, before making any decisions on how to deal with your new Ethereum that’s automatically deposited into your account after the hard fork (July 20th), be sure to check out all your options here. We’ve broken down each scenario so you know exactly what will happen and which choice will give you the best outcome in terms of making money off Ethereum Merge.
If you’re looking to make money on Ethereum after it splits, now you know a few different ways that you can do so. Before taking any action, however, be sure to read all about Ethereum Merge and how it will affect your digital currency. If you plan ahead and make an informed decision about what type of coins or tokens to hold, you can set yourself up for profits before they occur.
With all of that said, you should know that Ethereum Merger won’t be available immediately after it forks on July 20th. And, even if you had access to a new Ethereum at launch, it would probably have very little value because there aren’t many places that currently accept it as a form of payment. As time goes on and more businesses begin accepting Ethereum Merge and other cryptocurrencies like it, however, its value will likely increase as well.
Many people believe that cryptocurrencies will eventually be as widely accepted as major credit cards like Visa or MasterCard. That’s why even if you only have a few Ethereum now, it may be in your best interest to hold onto them and sell them later when they are more valuable. With Ethereum Merge being one of the most popular forms of cryptocurrency available today, its value will likely increase significantly over time.