Chinese investors continued to play a very important role in building various famous applications of Web3 even after the Chinese government banned crypto mining as well as trading within the country. The Merge, a much waited Ethereum network update to be released this week, could open a new way for China crypto developers and investors to be a part of the blockchain economy two years after their country banned it.
The Merge, the most significant Ethereum network update ever, will help investors to enjoy many benefits. Mainly, it will address the biggest criticism against crypto–environmental impacts. Exclusively for China, the update will make it difficult for any associate to trace participants over this network, which would benefit investors.
To date, major blockchain networks have been using a method known as proof-of-work to validate transactions in their system. In this system, there was a huge power consumption because the servers require to solve cryptographic puzzles, which is a huge problem.
Before these networks were banned from China, the country accounted for around ⅔ of the total Bitcoin hash power, which was used to carry out the proof of work method to validate transactions. But, Beijing saw it as a novel sector draining its economy. Therefore, they added crypto mining and trading to the list of industries that must be eliminated because of security issues, high resource requirements, and also harmful to the environment.
POS will make ETH safer for Chinese users
The upcoming ethereum update will not only help people to reduce the environmental impact, but it will also increase decentralization over the network. This will be done using a method known as Proof-Of-Stake, allowing anyone to start validating the network by staking their tokens. It has gained a lot of popularity over the past few months and will make it difficult/almost impossible for authorities to trace validators.
By running a node and joining the staking economy of the token, you can be a node operator by holding at least 32 ETH, which will cost a person around 56,000 US Dollars. ETH holders can also delegate different third parties to stake their assets.
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