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Ropsten, the oldest Ethereum test network, recently shifted from proof-of-work to proof-of-stake. This merge seeks to optimize efficiency and make the network more eco-friendly.
What Happened: According to the Ethereum (CRYPTO: ETH) Foundation developer, the Ropsten Testnet effectively merged to proof-of-stake at 12 p.m. EST on Thursday, June 8. This merge was successful, despite minor bug issues that were consequently repaired. The primary function of the Ropsten testnet is to test upgrades to the blockchain before launching them on the mainnet, without risking any actual funds. Vitalik Buterin, co-founder of Ethereum, stated that the network will undergo two other testnet merges on Ethereum Sepolia and Goelri, prior to the mainnet merge.
“If everything goes well, it basically means that we're just a bit of polishing away from the merge being able to happen on mainnet," Buterin said.
Why It's Important: The overall success of the merge on the Ropsten Testnet is promising to the Ethereum network as well as ETH holders. Once Ethereum successfully undertakes this transition from proof-of-work to proof-of-stake, its energy consumption is set to fall by 99.9%. However, given that the merge pertains to the consensus layer, rather than the execution layer, gas fees and transaction timings will remain unchanged. As the mainnet merge nears, testnet successes are encouraging to the long-term success of ETH, relative to other competitor cryptocurrencies, such as Solana (CRYPTO: SOL). Despite the bearish market sentiment, a successful mainnet merge will be hugely beneficial to Ethereum’s long-term success.
What’s Next: The upcoming mainnet merge is set to occur in August. Both investors and developers are reassured by testnet success. According to Fortune, Buterin is confident, yet cautious, as he treads forward.
“So, I think it's actually important to not be a catastrophist about the actual events, and also be mindful about the risks that do still remain after the events," Buterin said.
Overall, the mainnet transition to the proof-of-stake algorithm mechanism will do good for network efficiency, users, the environment, and in turn, the intrinsic and trading value of ETH.