- Bitwise’s Matt Hougan highlights the concerns that might hover around the new software upgrade.
- Although the Merge is set to sit on top of Ethereum soon, can it witness more delays?
The long-awaited Ethereum upgrade is all set to roll out in the summer of this year. The vast Ethereum network is ready to execute a considerable software upgrade in crypto.
Post the Merge, the current Proof-of-work (PoW) model of Ethereum would change to Proof-of-stake (PoS) model.
Shift To PoS Model Won’t Be Bug-Free
According to Bitwise Asset Management, the top crypto fund, this upgrade is the year’s most compelling story in the digital asset space. But apart from signifying the importance of the event, it also points towards the risks associated with it.
According to Matt Hougan, the Chief Investment Officer at Bitwise who recently expressed himself in a Webcast, this is a high stakes, highly complex upgrade to the core blockchain, which currently protects over $300 Billion in assets. Hence, there are significant risks.
The Merge has been long-awaited by the crypto enthusiasts, as it is anticipated that it would bring lower costs, and speedy transactions, to the blockchain network. But the upgrade has already witnessed delays. Tim Beiko, the Ethereum Developer, highlighted last week that the upgrade wouldn’t take place in June but a few months later.
Hougan signified on this that Complex Software launches are usually delayed, and this is one complex launch. While many folks expect that to occur in the next few months, there is a possibility of further delays. He further noted that PoDS systems are more PoW systems. And that even though it would be well tested, it might not be free from glitches
He highlighted other risks that the Proof-of-Stake algorithm is not as battle-tested as the Proof-of-Work, which has proved to be compliant with the larger networks for over a decade now. And that the PoS system is a bit newer in the industry with more inherent risks.
Many crypto experts are still confident regarding the software upgrade launch to happen soon, despite the previous delays. But apparently, the developers are not that confident when exactly that would happen.
Source: https://www.thecoinrepublic.com/2022/04/25/a-prominent-crypto-fund-highlights-risks-in-ethereums-merge-when-it-would-exactly-take-place/