This ETH merger, are you a baker, shaker, striker or maker?
If you’re into web3, the biggest tech news of the week wasn’t the huge Figma-Adobe deal. No, the leading story of the past few days – maybe even the last few weeks – has been the Ethereum merge.
The Merge, an upgrade of the Ethereum blockchain that moved it from a proof of work (PoW) to a proof of stake (PoS) system of consensus, was a long-awaited shift that finally happened this week. And since the change in technology is expected to reduce the carbon footprint of the popular blockchain by ~99%, we had a lot to start with.
But we didn’t just want to dwell on the startup angle, or the web3 perspective, because the merger had huge implications for crypto as an industry and its place in the world of emerging technology. So we brought our startup and blockchain podcast teams together for a collab episode to touch on both angles: Anita and Jacquie from Chain Reaction and Natasha and Alex from Equity. This also gave us a 50-50 australiabusinessblog.com-australiabusinessblog.com+ split, which was a lot of fun.
We started by outlining how the anticipation surrounding this monumental event in web3 affected token prices and digging into what factors had fueled the optimism. Then we broke down the underlying mechanics Why proof-of-stake is greener, but may be less decentralized than proof-of-work (although we all had different views on whether that’s a fair assessment).
The creation of the Merge was an event that required such technical coordination and accuracy that it has been compared to the moon landing. What are the implications for web3 startups? What about the rest of the tech industry, or major financial institutions, or Chinese crypto miners? We’ve gone through all of these questions and more and tried both what the Merge is and why it matters, by looking at it as holistically as possible.
Just as there are many different stakeholders affected by the Merger, all of whom think differently, so do we. This episode had a lot of back and forth as the team unpacked some quirky bits of crypto jargon, like the term “baker” and what it means in a proof-of-stake ecosystem and the timeline of what’s to come after the merger. , which includes the Surge, Verge, Purge, and Splurge. No kidding – we explain what those mean in this episode.
We’ll be doing more stuff like this as time goes on, thanks to some welcome resources for our production crew (huge shoutout to Grace, Theresa, and Maggie).
For more information about the merger, you can find the required literature here, here and here. Forward!