Crypto's Long-Awaited 'Merge' Reaches the Finish Line

The moment finally arrived, in the last minutes before midnight on the West Coast on Wednesday. After years of delays, discussions and frantic experimentation, the popular cryptocurrency platform Ethereum completed a long-awaited software upgrade known as the Merge, shifting to a more environmentally sustainable framework. From a report: Ethereum is arguably the most crucial platform in the crypto industry, a layer of software infrastructure that forms the basis of thousands of applications handling more than $50 billion in customer funds. The upgrade is expected to reduce Ethereum's energy consumption and set the stage for future improvements that will make the platform easier and cheaper to use. Celebrations erupted on a YouTube livestream where engineers and researchers who worked on the Merge had gathered to mark the milestone. It was a rare moment of joy in a grim year for crypto that saw a devastating market crash drain nearly $1 trillion from the industry, forcing some prominent crypto companies into bankruptcy. [...] The technical details of the Merge are mind-bendingly complex. But, ultimately, the process boils down to a shift in how cryptocurrency transactions are verified. In traditional finance, an exchange of funds involves an intermediary, like a bank, which verifies that one entity has enough money to make a payment to another. Crypto was designed to eliminate such financial gatekeepers. So, early crypto engineers had to devise an alternative system to ensure that users had the funds they claimed to have. Their solution was called "proof of work." Under that system, powerful computers run software that races to solve complex problems, verifying transactions in the process. The system is widely known as "mining" because the computers earn payments in cryptocurrency as rewards for the verification service.

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