Sept 15: Ethereum completes The Merge! What happened, what's next, and why it matters - Transcripts
On today's CoinMarketRecap with Connor Sephton, Ethereum successfully makes the switch from Proof-of-Work to Proof-of-Stake. We find out how The Merge went, why it's such a significant upgrade, and why Vitalik Buterin says the hard work for developers begins now. Plus — Craig Wright makes a big revelation during a trial in Norway, and South Korean officials attempt to void Do Kwon's passport. You can follow us on Twitter — @ConnorSephton and @CoinMarketCap.
merge. Hello to you. Welcome to coin market recap on thursday the 15th of september and its official ethereum has completed the merge. The ambitious switch from a proof of work Blockchain to proof of stake has been years in the making and according to the Ethereum Foundation, it will slash the amount of energy it uses by 99.95%. As the merge approached in the early hours of Thursday morning, software engineers and developers revealed what would count as a success. We hope
to see over the course of the first epoch, just 32 slots, which is about six minutes. We hope to see many blocks optimally we'll see 32 you know, if we see 30 or more then we're like, we're golden. If we see a bit of a precipitous drop something like 25 in that range, we're gonna say, okay, something's looking a little bit weird, we're gonna be digging in, but that's going to be one of our first indicators is that first CPAc do we have many blocks and we have similar percentage of attestation, so You know, we're 90-plus
countless stress rehearsals and tests have been taking place in recent months and the entire project has been compared to changing a car's engine as it travels at high speed viewing parties were held around the world and the ethereum Foundation's official livestream captured the moment when proof of stake was activated. This is the moment of
truth, come on now, let's go, let's go, let's go. Hey, I got pandas pos activated. Pandas, come on to come on now. Let's go. Let's go. Panda. Yeah, Built on it. So everyone, we knew this would happen, we knew that we would get this far. There's nothing contentious yet. The next 13 minutes are the nail biting times.
Software engineers said the merge went perfectly, miners are now obsolete and instead validators who lock up their own are responsible for validating transaction. The Ethereum Foundation had expected that validator participation rates could be as low as 80-90%. But as the first few blocks emerged, 95% was being achieved.
We began this night a couple hours ago as a proof of stake network with thousands of people around the world mining ethereum with their GPU s about five minutes ago. Well, I'm sorry. Actually about 13 minutes ago The entire network shifted to proof of stake. Now relying on validators with 32 Ether deposits to guarantee the network and one of the biggest benefits of that is the 99.98 power reduction. So that is our win. That's why we're so excited and so proud of everyone involved.
This ushers in a new era for ethereum and eliminates one of the biggest criticisms surrounding this Blockchain. Energy consumption. Software engineers had this message for minus.
Let's appreciate all the GPU miners did for us. They Yes, absolutely, 100%. A lot of us all did that thing. I mean we all did it and I mean I eagerly welcome gpu miners to come to proof of stake. Um the network has done a lot for you, you're a part of us join us and proof of stake
and in theory and researcher Justin drake also explain how significant the merge
Was. You know, at a high level, we're going to be reducing the energy consumption of the whole world by roughly 0.2%. So a film right now is consuming 0.2% of all the electricity that is produced. Bitcoin is on the order of 0.5 and I can't think of a single technological innovation that reduces worldwide, you know, electricity consumption as much as the move to proof of stake does. And one of the really cool things about this electricity reduction is that the mainstream understands. It's something that's so obviously good. Um you know, there's so many advantages to the merge but things like the security improvements, things like the monetary improvements are much much, much harder to to understand. So I think as a community, we, we shouldn't be shy and we should really should be proud,
ethereum co founder, metallic Budarin described the merge as a big moment for the ecosystem and said everyone involved in making this happen should feel very proud of themselves. But he stressed this is just the beginning and there's much more work to be done.
The first step in aquariums. Um big journey toward being a very a very mature system and there's still steps off to go. We still have to scale. We still have to fix privacy. We still have to make the, make the thing actually secure for regular users and um, all of this stuff and you know, I think we all just, we all need to work hard and do our part to make all of those other things happen as well. So I mean I'm, you know, like to me the merge just like symbolizes from the difference between sort of early stage ethereum and you know, the ethereum we've always wanted early stage ethereum to to become so let's go and build out all of the other parts of that ecosystem and monitoring ethereum into being what we wanted to be
Ethers price has been pretty flat over the past 24 hours indicating the merge was already priced in. But ethereum classic, which remains on a proof of work Blockchain has surged by 4% in the past 24 hours east. W the token representing a hard fork of the current ethereum Blockchain has gone off to a very rocky start. It's fallen by 37% in the past 24 hours. Some other news now and craig Wright has made a big revelation on day three of his trial against huddle naught
drive in the USB stick. Yes, you destroyed both with the hammer. Yes and stomped on one with my foot. So that's a bit different.
The Australian entrepreneur argues it would be extremely difficult for him to provide further cryptographic proof that he's Satoshi Nakamoto because he's destroyed the hard drive that contains key pieces needed to gain access to Private keys back in 2019. Hotline Ought wrote tweets that accused dr right of being a fraud and a scammer and this court case aims to determine whether these posts are protected by freedom of speech. Also during Wednesday's hearing, Dr. Wright had this to say about Bitcoin.
Bitcoin is not encrypted. Bitcoin can be seized can be frozen. Bitcoin acts within the law. There is a lot of misinformation from Btc maximalist who want to go back to drug markets, child porn pedophilia and they don't want legal enforcement of Bitcoin. I want to make sure that judges and courts understand that Bitcoin is not encrypted and it can be seized frozen and accessed under a court order. I want to make sure that the lies about thousands and thousands of nodes are understood and that people understand that BTC has 15 nodes, three of which control 59% of the hash power today I want it known that these lies these slanderous accusations about how law enforcement can't take Bitcoin from criminals are
wrong. The case continues and South Korea is attempting to avoid dark ones passport according to local media. It comes after an arrest warrant for the embattled terror co founder and five others was issued. Kwan is believed to be in Singapore and he's been charged with violating the Capital Markets Act. According to the Financial Times, Singapore is not on South Korea's list of bilateral extradition treaties and officials are also considering cooperating with Interpol. Lawyers believe Kwan would face serious difficulties in traveling outside of Singapore if an Interpol red notice is issued, That's it for today's coin market recap, please do leave us a review if you've enjoyed today's episode, there's plenty more critical news and features on our website over at coin market cap dot com forward slash alexandria sefton. Thanks so much for listening and I'll be back with molly jane tomorrow for our weekly news roundup. Bye bye for now.