The CEO of crypto exchange FTX, Sam Bankman-Fried, feels that Ethereum’s Merge will be difficult in the beginning but will benefit the broader ecosystem in the long run.
Sam Bankman-Fried, CEO of FTX, and Anthony Scaramucci, founder of SkyBridge Capital, spoke earlier on numerous topics, including the forthcoming Ethereum Merge.
The Ethereum Merge will result in the Ethereum blockchain shifting from a proof of work (PoW) process to a proof of stake mechanism (PoS). The move is intended to make the Ethereum network faster, more scalable, eco-friendly, and less expensive to operate.
Bankman-Fried stated in response to the Ethereum Merge:
“I think long term it is going to be exciting for the Ethereum community. It is going to allow substantially faster and cheaper processing of transactions. However, I do think that it is going to be, as big other transitions are at the beginning, rocky. I think there is going to be some messy activity around when it happens. That is inevitable.”
The FTX CEO stated that the Ethereum Merge will benefit the broader cryptocurrency ecosystem in the medium to long run.
When pushed to elaborate on what he meant by “messy” at the outset, Bankman-Fried stated that not everyone in the Ethereum community agrees with the proof of stake method and prefers the proof of work process.
Furthermore, a large number of developers will be required to update their software and sync to the new chain. Developers will also need to learn new skills to ensure that their protocols work as intended. He stated;
“I don’t think it is going to be a huge deal medium term, but it is a big transition, and with an entire decentralized ecosystem carrying out the transition at once, some people will flop it, and it will take some time to clean it up.”
Bankman-Fried predicted that, while everything will be alright in the end, there might be some tough spots around the periphery.
Scaramucci went on to say that, despite the gains made in the cryptocurrency market, we are still in the early stages, and the market has a long way to go.
FTX is one of the world’s fastest-growing cryptocurrency exchanges, with enormous growth over the last several years.