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JPMorgan Concerned About the Ethereum Blockchain Following the Merge

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20-09-2022

Following the recent switch to a proof-of-stake (PoS) consensus mechanism, also known as the Merge, there are several issues that are unique to the Ethereum blockchain, according to a research paper released on Wednesday by JPMorgan (JPM).


The modification sparked a hard fork that divided the blockchain in two and gave rise to the Ethereum PoW chain. The split version, which continues to employ proof-of-work (PoW) verification, has received backing from several exchanges and platforms, and at least 19 former ether mining pools are currently operating on it, according to the study. It warned that there was a chance the branched chain may split the Ethereum community.

JPMorgan reports a significant drop in the price of ether (ETH). According to the research, this decline was likely brought on by a mix of "buy-the-rumor/sell-the-news movements particular to Ethereum's combine event" and general weakness in risk assets as a result of increasingly hawkish central banks.


According to the note, other graphics-processing-unit (GPU) compatible PoW blockchains like Ravencoin and Ergo have also seen significant increases in hash rate as a result of the Merge. However, Ethereum Classic has been the main beneficiary of the Merge in terms of mining, as its hash rate has doubled.