Sam Bankman-Fried, CEO of crypto exchange FTX, believes that the Ethereum merger will be rocky in its early days, but will be beneficial to the broader ecosystem in the long term.
Sam Bankman-Fried, CEO of crypto exchange FTX, and Anthony Scaramucci, founder of Skybridge Capital, have shared a interview to CNBC Earlier today, several topics were discussed, including the upcoming Ethereum merge.
Ethereum Merge will enable the Ethereum blockchain transition from a Proof of Work (PoW) mechanism to a Proof of Stake (PoS). The move is designed to make the Ethereum network faster, more scalable, more eco-friendly and less expensive to use.
Commenting on the Ethereum merge, Bankman-Fried said;
“I think in the long run this will be exciting for the Ethereum community. It is going to allow for significantly faster and cheaper processing of transactions. However, I think it is going to happen, as the other big changes are rocky in the beginning . I think there’s going to be some fishy activity around when this happens. It’s inevitable.”
The FTX boss said that in the medium to long term, the Ethereum merger will be helpful for the broader cryptocurrency ecosystem.
When asked to explain what he meant by the glitch in the beginning, Bankman-Fried said that not everyone in the Ethereum community is okay with proof of stake mechanisms and prefers proof of work.
In addition, many developers will need to update their software and sync to the new series. Developers will also need to learn a few new things to make sure their protocols are as designed early on. he said;
“I don’t think it is going to be a big deal medium term, but it is a big transition, and with an entire decentralized ecosystem completing the transition at once, some people will flop it, and it will take some time. Will clean it up.”
Bankman-Fried said that although this will work fine for everyone, eventually, there will be some rough patches around the edges.
Scaramucci said that despite the progress in the cryptocurrency market, we are still early, and the market has a long way to go from here.
FTX is one of the fastest growing cryptocurrency exchanges in the world, which has registered massive growth over the years.