How Ethereum Fundamentally Differs from Bitcoin
Officially launched in 2015, Ethereum improves upon Bitcoin’s groundbreaking peer-to-peer trustless technology, with some key differences.
Both networks let you use digital tokens as a value transfer without going through payment providers, banks, or other intermediaries. But unlike Bitcoin, Ethereum is programmable, so you can also build and deploy decentralized applications (Dapps) on its main network.
Because Ethereum has programmability, anyone can build apps that use its blockchain to store data or control what an app can do. This results in a multipurpose blockchain that can be programmed to do virtually anything!
Transitioning from PoW to PoS
At the most basic level, “The Merge” is a pivotal event in Ethereum’s history in which it will transition from an energy-intensive Proof-of-Work (PoW) consensus mechanism to a more energy-friendly Proof-of-Stake (PoS) version. For those not in the know, “staking” is a different way of validating transactions on a blockchain. Instead of using high levels of electricity to solve complex mathematics, validators on the blockchain are
This transition to PoS will consume less energy and set the stage for future scaling upgrades on the Ethereum network. This means that Ethereum will have reduced fees and faster transaction times over time.
What Happens After the Ethereum Merge?
The main thing that will change with Ethereum’s upcoming “Merge” is that the blockchain will use less electricity and processing power to confirm transactions. In some estimates, it will use up to 99.9% less electricity.
Per Ethereum’s documentation, reduced fees and expanded network capabilities are upcoming features that the change to PoS will enable. They are not a default upgrade, and users should not expect ETH fees or transaction times to immediately decrease once “The Merge” happens.
What Should BitMartians Do?
Luckily, there’s nothing that BitMartians need to do to prepare for “The Merge.” BitMart has already pledged to watch the industry’s response and support both the PoS main chain and any hard forks that may be sustainable/break off from the Ethereum network. Rest assured that your assets are always safe on BitMart and that your ETH won’t suddenly become “incompatible” or “corrupted” after it transitions to PoS.
Need to Buy (or Sell) Some ETH?
Do you want to purchase some ETH before or after “The Merge,” but don’t know where to start? Instead of wondering where to go for your ETH, BitMart’s got you covered with multiple high-quality products:
Spot: Is the market price the best it’s going to be? Then use BitMart’s simple trading platform to buy ETH at current market prices to HODL, swap, or send.
Margin: Got a feeling that ETH is overvalued or being glossed over? Bet on the price going up or down with up to 5x leverage using BitMart’s margin trading features.
Staking — Instead of letting your precious crypto sit around, why not generate a healthy APY on your current balance? In honor of “The Merge,” BitMart is offering various high APY staking opportunities* for all ETH holders and adjacent blockchains (ETC) while we wait for PoS to come online!
ETH — 2.5%
ETC — 0.68%
ETH — 3.5%
ETC — 1.2%
*BitMart Savings is not available for users located in, established in, or a resident of the United States of America.
Don’t have a way to purchase crypto? Instead of missing out and sitting on the sidelines, sign up for a BitMart account today so you have access to everything you’d want in an exchange (including getting your very own stack of ETH).
For more information on what’s happening with Ethereum, including basic info about “The Merge” and various pros/cons about this once-in-a-crypto lifetime occurrence, be sure to tune in to the BitMart Podcast Network and The BitMart BrainTrust, where this issue is discussed in depth.
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