Two crypto experts say the Ethereum network merge is critical for the future of the currency

The biggest upgrade in the history of ether just took effect, which industry experts say is a game-changing event. All indications are that the so-called merge was a success.

The first proof-of-stake block of transactions has been completed with 100% client participation. The best case scenario was this one.

The changes to the ethereum network fundamentally change how the network is secured and verified. The hallmark of a successful upgrade is if the end user doesn't notice a change in the hours and days ahead.

Some people don't like the process of mining for new coins. Both blockchains had their own networks of computers that crunched math equations in order to verify transactions. One of the biggest targets for critique is proof-of-work.

Proof-of-stake is a system that swaps out miners for validators. Instead of running large banks of computers, validators use their existing cache of ether as a way to verify transactions and mint new token.

The price of ether has fallen more than 1% in the last 24 hours.

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More than 100 developers and nine teams worked on the merger. In the hours ahead, this network of programmers spread out across the planet will be watching the roll out and will be able to fix it if necessary.

Danny Ryan, a core developer based in Denver who has been working on the merger for five years, tells CNBC that they will be watching for any anomalies via both automated and manual monitoring systems. Ryan says they are pretty confident going into the merge given the success of the dry runs in the last few months.

There could be a small fire that gets put out quickly. The network as a whole will be stable because of the redundant software.

The merger is a big deal because of the way it's done.

The White House warned last week that proof-of-work mining operations could make it hard to mitigate the effects of climate change. Slashing energy consumption by roughly 99% will not only make the network more sustainable, but it will also make it easier for institutional investors to enter the market.

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According to a note from Bank of America, the reduction in energy consumption after the merger may allow some institutional investors to purchase the token that were previously banned from purchasing.

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The tokenomics around ether have been changed by the upgrade.

Ryan said that ether became a productive asset. It is something that can earn returns.

Some of the characteristics of a traditional financial asset, such as a certificate of deposit, have been taken on by ether.

Ryan said that the yield in other corners of Defi involve smart contract risks and other types of counter party risk.

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It is possible that ether will become a deflationary currency in the weeks and months ahead as a result of the upgrade. The price of the token could be driven up by this.

The new verification model replaced miners with validations. Less ether will be created as a result of this upgrade because the rewards for validators are smaller than those for proof-of-work miners. Validators are required to keep their token locked up for a long time.

The network is currently burning or permanently destroying a portion of the digital currency that would otherwise be recycled back into circulation.

Enhancement of network security is one of the key features of the upgrade.

Sean Anderson of sigma prime said there are changes to the security guarantees.

A 51% attack is when someone or a group of people take control of more than one coin and weaponize it to make changes to the ledger.

Anderson says that it's easier to recover from a 51% attack on a proof-of-stake network because there are built in mechanisms to financially punish malicious actors.

Ryan told CNBC that if the economic asset is inside of the protocol, it will give you a better recovery mode.

The health of the network will be assessed over the next few days. The participation rate of validators will be monitored by developers behind the scenes. In an ideal world, users wouldn't be aware of the upgrade.

Anderson said that an end user wouldn't notice a difference if everything went perfectly. It was smooth if anyone didn't know about it.

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There are future upgrades that are now possible after the upgrade.

Ryan says that the network needs scalability going forward.

Layer two technologies such as roll-ups are working to address that.

More ability to process user transactions is coming online in parallel through layer two constructions called roll ups, but the scale is not being enhanced at the core protocol itself. Subsequent upgrades bring that into the picture.

A head of research at an asset management firm says that her team is watching the projects that are trying to offer scale.

The biggest issue at the moment is that it's very fragmented. The L2s don't talk to each other very easily, so you end up with these people who are on ethereum, but they are separated from each other. It's not a seamless experience.

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