Ether is all but ready for a Merge update that was scheduled to happen in September and is still on track for it. Citigroup bank has done extensive research on the subject and has even produced a report that says that if the Merge updates go through and Ether shifts its consensus protocol to the ‘proof of stake’, then it is likely for the asset to become deflationary, the block creation time would also decrease, and the transactions could be validated in real-time at a much faster pace, not to mention that the gas prices would also decrease which is a plus for all Ether enthusiasts.
Less Power Consumption and more Efficiency
The report also read that after the update, the per-clock mining capacity of the blockchain is likely to increase, but because the cryptocurrency will be shifting towards the proof of stake, it means that it will be consuming less and less energy which is an incredible element considering the environment. Generally, the report mentioned that the crypto would have a much more promising future with the proof of stake consensus protocol in action.
Ether could also become deflationary, which means it would become a store of value and could be invested heavily in not only by the institutional investors but also the market capitalists and such. Its share price and the overall price factor will also see a huge boost. All in all, it is going to be a great thing for Ether to become a store of value and shift its consensus protocol to the proof of stake algorithm.
As it is evident that the crypto market at present is going through a bit of a rough patch, and the volatility factor is at its peak. But still, Ether has performed better as compared to Bitcoin on almost all the fronts out there, which means that even before the update has gone live, there is still potential in Ether which is always a welcoming thought.