Circle, a blockchain company that creates USDC, declared that it will fully support the upcoming Ethereum Merge on August 9.
According to a blog post published by the Ethereum foundation last year, the Merge upgrade will reduce Ethereum’s power usage by 99.95%. Prior to the eagerly anticipated event scheduled for September 2018, we have decided to support The Merge. Circle announced that it would only and entirely support the Ethereum proof of stake (PoS) chain after the merge.
The mining protocol for Ethereum is currently being rewritten to switch from the current power-intensive “Proof-of-Work” (PoW) model to the more energy-efficient “Proof-of-Stake” (PoS) model.
However, Circle Pay has informed the asset’s owners that there is only one valid version of the blockchain on which the Ethereum-based asset can exist. As a result, the business has decided to operate USDC Coin using Ethereum’s environmentally friendly upgrade.
According to the Circle blog post:
“USDC is the largest dollar-backed stablecoin issued on Ethereum and, as the issuer of USDC, Circle intends to fully and solely support the Ethereum proof-of-stake (PoS) chain post-Merge. We do not anticipate disruptions to USDC on-chain capabilities nor to our fully automated issuance and redemption services. “
When mining shifts to proof-of-stake (PoS), a random pool of miners will be able to validate transactions on the Ethereum blockchain, doing away with the need for specialised equipment and labour to create new blocks and reducing Ethereum’s energy requirements.
Read more at Cryptoshrypto:
Ethereum co-founder Vitalik Buterin says The Merge to make crypto payments mainstream again