{"id":65397,"date":"2022-08-05T16:20:07","date_gmt":"2022-08-05T13:20:07","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=65397"},"modified":"2025-09-06T19:43:05","modified_gmt":"2025-09-06T16:43:05","slug":"citigroup-outlines-advantages-of-ethereums-transition-to-pos","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/citigroup-outlines-advantages-of-ethereums-transition-to-pos\/","title":{"rendered":"Citigroup outlines advantages of Ethereum&#8217;s transition to PoS"},"content":{"rendered":"<p>The planned September upgrade <a href=\"https:\/\/u1f987.com\/en\/news\/the-merge-what-to-expect-from-ethereums-largest-update\">The Merge<\/a> will reduce the energy intensity of the Ethereum network, shift the asset&#8217;s issuance to a deflationary model, and &#8216;pave the way to a more scalable future through sharding&#8217;. Analysts at Citigroup said this, CoinDesk reports.<\/p>\n<p>Experts noted that the mainnet merge with the Beacon Chain is one of the five stages of Ethereum&#8217;s planned upgrade. The Merge could increase blockchain throughput by 10% due to a reduction in block time (<a href=\\\"https:\/\/ethereum.org\/en\/developers\/docs\/blocks\/\\\">block time<\/a>) from 13 to 12 seconds.<\/p>\n<p>The upgrade also lays the groundwork for the next upgrade \u2014 Surge. The latter will enable Ethereum to process <a href=\"https:\/\/u1f987.com\/en\/news\/buterin-foresees-ethereum-throughput-of-100000-tps\">up to 100,000 transactions per second<\/a>, to be achieved through the use of <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-sharding\">sharding<\/a>.<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">.<a href=\\\"https:\/\/twitter.com\/VitalikButerin?ref_src=twsrc%5Etfw\\\">@VitalikButerin<\/a> claims that <a href=\\\"https:\/\/twitter.com\/hashtag\/Ethereum?src=hash&#038;ref_src=twsrc%5Etfw\\\">#Ethereum<\/a> will be able to to process \u00ab100,000 transactions per second\u00bb, following the completion of 5 key phases:<\/p>\n<p>\u2022 The Merge <br \/>\u2022 The Surge<br \/>\u2022 The Verge <br \/>\u2022 The Purge<br \/>\u2022 The Splurge<\/p>\n<p>A quick breakdown of what each stage means for <a href=\\\"https:\/\/twitter.com\/search?q=%24ETH&#038;src=ctag&#038;ref_src=twsrc%5Etfw\\\">$ETH<\/a>. \ud83d\udc47 <a href=\\\"https:\/\/t.co\/FnaWww8mHZ\\\">pic.twitter.com\/FnaWww8mHZ<\/a><\/p>\n<p>\u2014 Miles Deutscher (@milesdeutscher) <a href=\\\"https:\/\/twitter.com\/milesdeutscher\/status\/1550315295402668032?ref_src=twsrc%5Etfw\\\">July 22, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\\\"\\\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script>\\n\\n\\n\\n<\/p>\n<p>Analysts expect that the transition to the consensus algorithm <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-the-proof-of-work-pow-algorithm\">Proof-of-Stake<\/a> (PoS) will reduce Ethereum issuance by 4.2% per year. Citigroup stressed that this will positively affect ETH&#8217;s perception as a store of value.<\/p>\n<p>\\n\\n\\n\\n<\/p>\n<p>Experts explained that the switch to PoS will turn the cryptocurrency into a &#8216;yield-generating asset&#8217;, operating in a network with abundant cash flows. This could make the Ethereum ecosystem a backbone for most DeFi applications.<\/p>\n<p>\\n\\n\\n\\n<\/p>\n<p>The bank also noted that after the upgrade ETH could be considered a relatively energy-efficient and environmentally friendly digital asset. Analysts expect the network&#8217;s electricity consumption to fall by 99.95%.<\/p>\n<p>\\n\\n\\n\\n<\/p>\n<p>Earlier, Markus Til\u00e9n of IDEG, an asset-management firm, forecast the <a href=\"https:\/\/u1f987.com\/en\/news\/expert-predicts-ethereum-price-consolidation-ahead-of-the-merge\">consolidation of Ethereum quotes<\/a> after The Merge activation.<\/p>\n<p>\\n\\n\\n\\n<\/p>\n<p>Follow ForkLog&#8217;s Bitcoin news on our <a href=\\\"\/\/telegram.me\/forklog\\\" target=\\\"\u201c_blank\u201d\\\" rel=\\\"\u201cnofollow\u201d noopener\\\">Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The planned September upgrade The Merge will reduce Ethereum&#8217;s energy consumption, shift issuance to a deflationary model, and &#8216;pave the way to a more scalable future through sharding&#8217;. Analysts at Citigroup said.<\/p>\n","protected":false},"author":1,"featured_media":65398,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[46,1138],"class_list":["post-65397","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-ethereum","tag-opinions"],"aioseo_notices":[],"amp_enabled":true,"views":"7","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/65397","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=65397"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/65397\/revisions"}],"predecessor-version":[{"id":65399,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/65397\/revisions\/65399"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/65398"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=65397"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=65397"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=65397"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}