– Ethereum completed its radical shift to a new, vastly more energy-friendly system for powering its network in 2022.
– This was marked with various issues such as concerns around censorship and record-shattering hacks on Ethereum-linked infrastructure.
– The Merge, while reducing Ethereum’s energy consumption significantly, has led to charges of centralization and never spurred a long-hoped-for bump to the price of ether.
Ethereum’s year of 2022 was one characterized by both major milestones and intense controversy. Having completed its radical transition to a more energy-efficient system, Ethereum had finally ticked off several boxes on its checklist toward creating a global computer and decentralized financial system. However, the year was not without its issues.
The Merge, Ethereum’s massive upgrade to a more energy-efficient system for processing transactions, represented a major milestone for the blockchain. By switching to proof-of-stake from proof-of-work, the Merge marked a massive reduction to the network’s energy footprint, ditching a power-hungry crypto mining system in favor of a new method for issuing and validating transactions on the blockchain. It is estimated to have cut the network’s energy consumption by around 99%.
Unfortunately, the Merge also sparked some controversy. Ethereum’s new power structure, where validators “stake” ether (ETH) with the chain for the chance to write transactions to its ledger, has led to charges that it is becoming too centralized. Additionally, while the Merge put Ethereum on a path to becoming a deflationary asset, the event came in the midst of a bear market and never spurred a long-hoped-for bump to the price of ether (ETH), the chain’s native currency.
Furthermore, the year of 2022 was also marked with other issues. Concerns around censorship and record-shattering hacks on Ethereum-linked infrastructure were just some of the issues that the blockchain had to grapple with.
Overall, Ethereum’s year of 2022 has been one of both highs and lows. While the Merge has brought the blockchain closer to its goal of creating a global computer and decentralized financial system, it has also brought up questions of centralization and has not been able to spur a long-hoped-for price increase. Additionally, various issues such as censorship and hacks have caused headaches for Ethereum’s development team. As the blockchain moves into the future, it will be interesting to see how these issues are addressed and how the blockchain continues to evolve.