The switch to proof of stake for Ethereum could happen this summer.
Preston Van Loon, an Ethereum core developer, said on a panel at the Permissionless conference that the shift will likely come to a completion in the next three months.
“As far as we know, August, if everything goes according to plan, it just makes sense,” Van Loon added. “If we don’t have to move the difficulty bomb, let’s do it as soon as we can.”
According to a tweet from event co-host Bankless, Ethereum Foundation Justin Drake, who was also on the panel, there is a “strong desire to make this happen before the difficulty bomb in August.”
The much-awaited Ethereum merge
Ethereum core developers decided not to upgrade the network in early May to avoid the so-called “difficulty bomb,” which would soon begin to degrade the network. It’s a blockchain component that purposely slows down the network.
The idea was to push developers to pursue proof of stake while also making it difficult for miners to stay on the proof-of-work chain following the transition. This month, core developers decided not to divert their attention away from The Merge, which is now being tested.
Its successful completion would obviate the need to defuse the difficulty bomb.
Ethereum currently uses a proof-of-work mechanism, in which miners compete to solve complex puzzles in order to validate transactions. This necessitates a significant amount of computer processing power and energy.
Ethereum is meant to become more eco-friendly and efficient by switching to proof-of-stake, where transactions are authenticated by those who contribute, or “stake,” to the network.
Proof of stake provides various advantages over proof of work in terms of keeping the network secure and decentralized. Proof-of-stake consensus should make it easier to engage in network management, allowing for more profound decentralization and increased security.
But the actual reason people are waiting for The Merge is that it is predicted to reduce ETH issuance by 90%. Less ETH in circulation implies less supply and more demand, which should push the coin’s price upward. According to CoinMarketCap data, 1 ETH is currently trading at $2,024.