Ethereum: Merging Into a New Era of Blockchain in 2022

– In 2022, Ethereum completed its radical shift to a new, vastly more energy-friendly system for powering its network – the Merge.
– The Merge marked a massive reduction to the network’s energy footprint, but has been criticized for leading to too much centralization.
– The Merge occurred amid a bear market and never spurred a long-hoped-for bump to the price of ether (ETH), Ethereum’s native currency.

In 2022, Ethereum achieved a major milestone in its mission to create a global computer and decentralized financial system. After years of work, the blockchain underwent a radical shift to a new, vastly more energy-efficient system for powering its network – the Merge. This dramatic change marked a major reduction to the network’s energy consumption, replacing the power-hungry crypto mining system with a new method for issuing and validating transactions on the blockchain.

The Merge was a long-awaited event that had been in the works for years, and the successful execution of the upgrade was a major boon for Ethereum. However, the Merge has not been without its problems. Some have criticized the new power structure for leading to too much centralization, where validators “stake” ether (ETH) with the chain for the chance to write transactions to its ledger. Furthermore, the Merge occurred amid a bear market and did not lead to the long-hoped-for bump to the price of ether (ETH), Ethereum’s native currency. As a result, the price of ETH has sunk more than 20% since the Merge.

The Merge wasn’t the only major event to occur in Ethereum’s rollercoaster year of 2022. There were also concerns around censorship and record-shattering hacks on Ethereum-linked infrastructure. In terms of censorship, Ethereum has been under fire for allowing certain transactions – such as those related to gambling and adult entertainment – to be blocked. While Ethereum has defended these decisions by saying that it is merely complying with local laws, the censorship has raised questions about the network’s commitment to decentralization.

As for the hacks, Ethereum was a target of several massive security breaches in 2022. The most notable was the exploit of the Layer 2 scaling solution bZx Protocol, which resulted in the theft of $8.1 million worth of Ethereum. While these hacks have been damaging to the network’s reputation, Ethereum has been taking steps to improve its security and has increased its bug bounty program to incentivize the reporting of vulnerabilities.

In spite of the challenges, Ethereum has made impressive progress toward its goal of building a global computer and decentralized financial system in 2022. The Merge marks a major step forward in this regard, and the network is now well-positioned to tackle the challenges that lie ahead.