Silver Spring, MD, Sept. 19, 2022 (GLOBE NEWSWIRE) — BTCS Inc. (Nasdaq: BTCS) (“BTCS” or the “Company”), a blockchain technology-focused firm and the primary Nasdaq listed U.S. public firm to run Ethereum validator nodes, broadcasts how the success of Ethereum’s Merge enhances its worth proposition.
Impact of Merge on BTCS
The Merge affords the potential for operators resembling BTCS, which at the moment runs 240 validator nodes and has staked over 8,350 ETH to see a cloth enhance in its ETH rewards, probably driving elevated income.
“Our decision to secure Ethereum’s Proof-of-Stake (“PoS”) beacon chain in early 2021 has proved sound. With the success of the merge, our conviction that Ethereum would efficiently transition to a greener and extra ESG-friendly chain has now come to fruition” acknowledged Charles Allen, Chief Executive Officer of BTCS. “Not only will the merge dramatically increase our rewards, but it should also improve scalability, increase energy efficiency by 99.95%, and enhance the security of Ethereum’s blockchain” continued Allen.
“Imagine a diesel-engine freight train moving at the speed of light carrying items of significant value like digital assets and banknotes. The diesel engine had served the train well in powering the transportation of goods. However, now imagine that there are a few problems with the diesel engine that would be eliminated if a newer, electric engine was swapped in while the train was still driving. The diesel engine being hinted at in the scenario above is the Proof-of-Work (“PoW”) engine, and the Merge is that engine swap– Ethereum’s transition into a more moderen electrical engine, PoS consensus algorithm” acknowledged Allen. “Consensus algorithms are the equivalent of engines that power some of the largest blockchains in the world today” continued Allen.
Maximum Extractable Value (“MEV”) is a worth that may be abstracted from modifying the order of transactions inside a selected block(s). Miners largely captured MEV earlier than the Merge; nonetheless, now, MEV (in addition to different protocol rewards and transaction charges) will probably be distributed to validators.
“Following the Merge, transaction fees once earned by miners will flow to validators such as BTCS” acknowledged Adele Carey, BTCS’ VP of Investor Relations. “Validator’s rewards are also increased due to a redistribution of MEV which should benefit BTCS,” Carey mentioned.
What is the Merge and Why it Matters?
Ethereum’s Merge is some of the vital occasions in crypto for the reason that publication of Bitcoin’s white paper. The transition from PoW to PoS eliminates the mining course of from Ethereum, which is the consensus algorithm Bitcoin makes use of for safety. Instead of being secured by miners that compete to unravel a computational puzzle the quickest, like Bitcoin, Ethereum is now secured by collateral (staked ETH–the native token of Ethereum). Validators deposit 32 ETH to make sure they behave in step with the principles of the community. That 32 ETH deposit is topic to slashing, which implies if a validator’s habits isn’t aligned with the protocol’s guidelines it could possibly be lowered. The Ethereum community Post-Merge depends on validators to authenticate transactions, thus eliminating the necessity for mining.
The transition to PoS will enhance Ethereum within the following methods:
- Increased Scalability: By altering its consensus algorithm to Proof-of-Stake, Ethereum is anticipated to change into much less congested. One Ethereum enchancment measure, Ethereum Improvement Proposal 1559 (“EIP-1559”), tackles this problem. Similar to a FastPass at Disney World, all park entrants pay a base payment, however they’ve the choice to train a tip on high of the bottom payment to hurry issues up. For extra extremely demanded rides, you possibly can wait in a queue or pay for a FastPass and assure your entry to the experience after a selected time. You pay for the comfort of not ready in line. Similarly, EIP-1559 combines a base token payment with tricks to optimize community congestion and provides individuals the choice to pay to hurry up transactions.
- Improved Energy Efficiency: Mining is an energy-intensive course of that requires costly laptop tools. The beefed-up {hardware} makes the computer systems quick sufficient to mine transactions. However, these computer systems require large vitality to function. The mining tools additionally has a restricted shelf life. Under PoW, Bitcoin makes use of as a lot vitality as Argentina, which has a inhabitants of 45 million individuals, as reported by Columbia University.
- Robust Security: Over 400,000 validators throughout your entire world now safe the Ethereum community Post-Merge. Despite that quantity being decrease than what had been as much as 1M miners mining Ethereum at one level, the Ethereum mining swimming pools have been dominated primarily by 3 entities, as reported by blockchain media outlet Coindesk. Now, the Ethereum community is much less inclined to collusion between miners who might have aspired to execute an assault on the community in the course of the PoW part. Following the Merge, assaults are costlier and self-defeating resulting from slashing.
About BTCS:
BTCS is an early mover within the blockchain and digital foreign money ecosystem, and the primary “Pure Play” U.S. publicly traded firm targeted on blockchain infrastructure and expertise. Through its blockchain infrastructure operations, the Company secures Proof-of-Stake blockchains by actively processing and validating blockchain transactions and is rewarded with native digital tokens. The Company is growing a proprietary Staking-as-a-Service platform to permit customers to stake and delegate supported cryptocurrencies by way of a non-custodial platform, which it plans to combine with its Digital Asset Dashboard, now in beta launch. BTCS’ proprietary Digital Asset Platform at the moment helps six exchanges and over 800 digital belongings, and the Company plans to additional broaden its suite of performance-tracking instruments, add extra centralized and decentralized exchanges, in addition to wallets, and validator monitoring. For extra info go to: www.btcs.com.
Forward-Looking Statements:
Certain statements on this press launch represent “forward-looking statements” throughout the that means of the federal securities legal guidelines together with statements concerning our optimism of the Ethereum transition, the Ethereum transition producing extra curiosity within the Company, alternative to construct worth for our shareholders. Words resembling “may,” “might,” “will,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “predict,” “forecast,” “project,” “plan,” “intend” or related expressions, or statements concerning intent, perception, or present expectations, are forward-looking statements. While the Company believes these forward-looking statements are cheap, undue reliance shouldn’t be positioned on any such forward-looking statements, that are primarily based on info out there to us on the date of this launch. These forward-looking statements are primarily based upon present estimates and assumptions and are topic to varied dangers and uncertainties, together with with out limitation, the rewards and prices related to validating transactions on proof-of-stake blockchains, a big lower within the worth within the crypto that we at the moment personal, loss or theft of the non-public withdrawal keys ensuing within the full lack of digital belongings and reward, regulatory points, sudden points with our Digital Asset Platform, reluctance of customers to simply accept our product, in addition to dangers set forth within the Company’s filings with the Securities and Exchange Commission together with its Form 10-Okay for the 12 months ended December 31, 2021 and the Prospectus Supplement dated September 14, 2021. Thus, precise outcomes could possibly be materially totally different. The Company expressly disclaims any obligation to replace or alter statements whether or not because of new info, future occasions or in any other case, besides as required by regulation.
Investor Relations:
Adele Carey
VP, Investor Relations
[email protected]
Public Relations:
Mercy Chikowore
[email protected]
