Ethereum’s (ETH) long awaited transition to a proof-of-stake operating model will officially take place on September 6, according to an announcement by the Ethereum Foundation.
The system-wide transition to a more energy efficient proof-of-stake protocol, known in cryptocurrency circles as “the Merge,” will begin on September 6 and be completed by September 20, the Foundation said.
The new proof-of-stake protocol will use 99.95% less energy than the current proof-of-work operating model and is viewed as a major milestone in the development of cryptocurrencies.
The energy consumed to mine for cryptocurrencies such as Ethereum and Bitcoin (BTC) has been a main criticism of the industry.
Proof-of-work and proof-of-stake protocols refer to two different methods of validating transactions on the blockchain.
The Merge involves a two-step process. The first step is known as the “Bellatrix” upgrade that will go live on September 6. Once Bellatrix is live, it will start another upgrade called “Paris” that is expected to be completed by September 20.
Ethereum’s price has risen 72% since June and is currently trading at $1,710 U.S.
Some industry observers say the transition to a proof-of-stake protocol is the biggest event in the cryptocurrency sector to date.
If the Merge proves successful, other cryptocurrencies, including Bitcoin, are expected to also make the switch to a proof-of-stake protocol.
