JAKARTA – The stablecoin issuer Tether supports the transition that Ethereum will make in the The Merge phase in September. Tether announced its support on Tuesday, August 9.
Ethereum as the second largest cryptocurrency after Bitcoin, is the first cryptocurrency to make the transition from a Proof-of-Work (PoW) to Proof-of-Stake (PoS) model. This has the potential to have a huge impact on other cryptocurrencies built on the Ethereum network
In an announcement on Tuesday, Tether stressed that it is important not to cause confusion and harm in the Ethereum ecosystem by arming the impending transition.
"For this reason, Tether will follow the development and preparation of this event closely and will support Ethereum POS according to the official schedule," said Tether, quoted from CryptoPotato.
Tether wants to ensure that Ethereum's transition from PoW to PoS runs smoothly. Ethereum is scheduled to implement The Merge on September 19. This stage is what the Ethereum community has been waiting for the most.
The transition is considered to be leaving the ETH mining model. The mining model will be replaced by crypto staking or locking systems to validate transactions on the network. By staking users will be rewarded a certain amount.
However, several members of the Ethereum mining community in China have discussed launching a new network, ETHW, at the time of The Merge. They assess ETH has the potential to give birth to a new fork, where the PoW version of ETH will still exist.
This poses a problem for stablecoin issuers, as they can only credibly use their reserves to serve exchanges for one network state. Prior to Tether, Circle – the publisher of USDC – also confirmed support for the merger.
"We know that it is our responsibility to convince the community of our support for its development," concluded Tether.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
