James Atkins
Editor
Editor
Sam Bankman-Fried, the CEO of crypto exchange FTX, believes that Ethereum’s Merge will be rocky in its early days but will be beneficial to the broader ecosystem in the long term.The CEO of crypto exchange FTX, Sam Bankman-Fried, and SkyBridge Capital founder, Anthony Scaramucci, were interviewed by CNBC today. The topics discussed included the upcoming Ethereum Merge.
Bankman-Fried notes that Ethereum’s Merge hard fork event, which is set to occur on September 20; is going to have a “rough start.”
The FTX CEO believes that Ethereum developers are not doing enough to make sure that. The network will be able to handle the load after the merge, which could lead to some Ethereum users losing money.
Bankman-Fried says:
“I think the Ethereum Merge is going to have a rough start. I don’t think the Ethereum developers have done enough to make sure that the network will be able to handle the load after the merge. I think there’s a good chance that a lot of Ethereum users are going to lose money.”
The Ethereum Merge will see the Ethereum network changeover from a proof of work (PoW) model to a proof of stake (PoS). The change is intended to improve the speed, scalability, environmentally friendly operation, and cost-efficiency of the Ethereum network.
While commenting on the Ethereum Merge, Bankman-Fried says;
“It’s going to be exciting for the Ethereum community in the long run. It will allow for considerably quicker and cheaper transaction processing. However, I do believe that it will be as tumultuous as other major changes are at the outset. I believe there will be some disorganized activity around when it takes place. It is unavoidable.”
The FTX boss states that, in the long run, the Ethereum Merge will be advantageous for the greater cryptocurrency community.
When prompted to clarify what he means by “sloppy,” Bankman-Fried states that. Not everyone in the Ethereum community agrees with the proof of stake mechanism – some people prefer proof of work instead.
Additionally, a large number of developers will have to update their software and align it to the new chain. For their protocols to operate as designed, Developers will also need to themselves with some new concepts. He says;
“I don’t think it will be a major problem in the medium term, but it is a significant change, and with everyone in the ecosystem performing the transition at once, some people will fail it and cleanup may take time.”
However, according to Bankman-Fried, although it would work out fine for everyone in the end. There would be some rough spots along the margins.
Scaramucci adds that despite the progress made in the cryptocurrency market. We are still early, and the market has a long way to grow from here.
In recent years, FTX has seen substantial growth and is now one of the world’s most popular cryptocurrency exchanges.
The Ethereum merge event is a planned upgrade to the Ethereum network that has been scheduled to occur at the block height of 7,080,000. This will result in two separate Ethereum networks – Ethereum (ETH) and Ethereum Classic (ETC).
The main Ethereum network will be moving to a proof-of-stake consensus algorithm. While Ethereum Classic will continue to use the proof-of-work consensus algorithm.
This event has been highly anticipated by the Ethereum community, as it marks a major milestone in the Ethereum roadmap. There are a few different ways to participate in this event, and FTX is offering one of the most unique ways to do so.
With FTX’s Ethereum Hard Fork Futures, you can trade the price of ETH and ETC before and after the hard fork. This product is a great way to hedge your existing Ethereum holdings or to speculate on the price of Ethereum post-fork.
I have been writing copy for blockchain-related projects since 2017. I understand the importance of being able to communicate clearly and effectively with both technical and non-technical audiences. By leveraging my understanding of the crypto industry trends, I can help increase adoption in this rapidly evolving landscape.
