This 'Merge' Will Change The Internet Forever 💻

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It's been a slow week in crypto, mostly because Elon Musk's efforts to buy Twitter have consumed the headlines. Elon's announcement matters in crypto for two reasons: crypto lives on Twitter and Elon has cultural influence in "tech" beyond any person in the world.

You can read more about this here. Regardless of what happens, Elon is flexing his Benjamins. Most people buy $43 jeans. Elon tries to buy $43 billion companies...

Enough about Elon, though. Let's teach you about one of the most important moments in internet history: the Ethereum Merge. As always, no crypto jargon, just plain English :)

WTF Is The Ethereum 'Merge'

New technology is not linear.

It comes and goes, hits us in waves, and sometimes disappears for years at a time. The early internet was no different, marked by short bursts of intense innovation. A few moments advanced us decades, like Berner Lee's World Wide Web in 1990 or Google's first search engine in 1996.

Web3, too, will not be linear, but rather accelerated by a few historical developments. One of the internet's most significant developments is happening right now, and most people have no idea.

It's called the 'Ethereum Merge' and it's as important as the iPod's evolution into a  iPhone. This event, like many in the world of crypto, is not accessible to most (hence, why I write this newsletter....).

I mean, seriously, WTF does a 'merge' even mean? Is it like a merger and acquisition? Are two ingredients blending together, like chocolate and peanut butter? (if so, I support this 'merge' with all my heart). 

Ethereum's merge will have ripple effects for the future of the internet, and, most of all, for you. Here's the 'Ethereum Merge' explained so simply that even your Grandma could follow what I'm saying:

Ethereum is the iOS of Web3. It's a platform that allows people build decentralized applications like decentralized exchanges, peer-to-peer transfers, and DAOs. To read more about Ethereum's impact and potential, read Packy McCormick's deep dive "Own The Internet".

Decentralization = No Middlemen = Less Human Error = Full Transparency

Ethereum's innovation will change the internet forever, like Steph Curry transformed basketball. But, right now, some key problems are holding it back. Because demand is so high for decentralized products, Ethereum is slow and expensive.

(↑ demand & ↓ supply = high price).

Ethereum is also energy intensive because it uses a system called Proof of Work (PoW), like Bitcoin does. PoW means that miners—computer geeks—allow the Ethereum network to run smoothly by verifying transactions. This uses a ton of energy.

Even Ethereum admits it: their PoW protocol has the same carbon footprint as Switzerland (yes, the country), and Ethereum can't even code tasty chocolate!

So, Ethereum's PoW system is like an iPhone with slow WiFi (story of my life). Enter the 'Merge': a new Ethereum built on a Proof of Stake (PoS) mechanism. Instead of miners securing the network, PoS has people who own Ethereum make sure the network operates smoothly.

PoW is like someone digging into the ground to find gold. PoS is like machines doing that work for them. 

me learning design

Okay, you get it: Ethereum 2.0 is Ethereum on steroids. And it means major improvements for the crypto industry: transactions that are faster, cheaper, and use less energy. So what's taking so long with the merge?

Well, huge technological advancement take time. Why? Because computer stuff, and because I'm not paid enough to rummage through the intricacies of software.

Vitalik Buterin, the young founder of Ethereum, envisioned an energy-efficient PoS network as early as 2015. People thought the merge might happen in June, but it's taking longer than expected according to Tim Beiko, an Ethereum developer.

We might have to wait a little longer to see Vitalik's vision materialize. Just know that  'Ethereum 2.0' might determine what the future of the internet looks like.

As for me, I have faith that young Vitalik as he follows in the footsteps of his louder and more intense predecessor Steve Jobs.

web3 stuff we’re munching on 🍿

→ An 'Outdoor' Metaverse: Outside Interactive, a healthy-living media brand, is launching the 'Outerverse', an NFT loyalty program that incentives people to spend more time outside. If you know me, you know the 'metaverse' rubs me the wrong way, so check out this cool project:

→ $2.9M to $14,000: Last year someone bought an NFT of Jack Dorsey's first tweet for $2.9M. Now it's selling for $14,000. Sounds like my portfolio over the past year 😂

→ Elon Musk, Twitter and Running Things Like a DAO: pretty cool article on Elon's twitter takeover and how why it's relevant for crypto. 

If you learned something, why not subscribe?

Sincerely,

Noah "ETH 💜" Edelman