Billionaire Mark Cuban counts himself among supporters of the upcoming Ethereum “merge,” a highly anticipated upgrade for the blockchain that will dramatically reduce its ecological footprint.
“I’m a fan of the merge,” Cuban, a Shark Tank investor and owner of the Dallas Mavericks, tells Fortune. “I think the energy usage issue is important.”
Indeed, the merge—estimated to happen Sept. 15—will shift Ethereum from a proof-of-work consensus mechanism to proof of stake. Proof of work is an energy-intensive process that relies on miners to add new blocks and verify transactions, whereas proof of stake instead relies on a network of validators. In turn, once the merge happens, mining on Ethereum will be effectively eliminated, and its overall energy consumption is expected to decline by 99.9%.
That’s why Cuban said he sees the move to proof of stake as a positive.
“But it’s long term. I don’t [know] if and when it goes up,” he added.
Even still, “I think the applications to drive usage will be there,” Cuban said, adding that he remains super bullish on Ethereum.
When previously discussing his affinity for Ethereum, Cuban has repeatedly mentioned the network’s applications and use cases being a driver behind his support. Mainly, he’s talked about his interest in smart contracts—collections of code that execute a set of instructions on a blockchain.
“What really changed everything was smart contracts,” he said in March 2021. “Smart contracts came along, and that created DeFi [decentralized finance] and NFTs [or non-fungible tokens]. That’s what changed the game. That’s what got me excited. That’s why it’s a lot like the internet.”
Cuban owns Ether, along with other cryptocurrencies like Bitcoin and the meme-inspired Dogecoin. His portfolio also consists of a few NFTs and investments in blockchain companies, many related to bettering Ethereum.
Sign up for theFortune Features email list so you don’t miss our biggest features, exclusive interviews, and investigations.
As an enthusiast deeply immersed in the world of blockchain and cryptocurrencies, my expertise is grounded in a comprehensive understanding of the technologies and trends shaping the space. My knowledge extends to the intricate workings of Ethereum, smart contracts, decentralized finance (DeFi), non-fungible tokens (NFTs), and the broader landscape of blockchain applications. I have actively followed the developments in the field, staying abreast of key events and innovations up to my last knowledge update in January 2022.
Now, delving into the content of the provided article, it discusses billionaire Mark Cuban's support for the upcoming Ethereum "merge." Mark Cuban, a well-known entrepreneur, Shark Tank investor, and owner of the Dallas Mavericks, is anticipating the highly awaited upgrade for Ethereum scheduled for September 15. The primary focus of this upgrade is to transition Ethereum from a proof-of-work (PoW) consensus mechanism to proof of stake (PoS), with the goal of significantly reducing the blockchain's ecological footprint.
Proof of work, the current consensus mechanism of Ethereum, is highlighted as an energy-intensive process reliant on miners to add new blocks and verify transactions. The transition to proof of stake will eliminate traditional mining, as the network will instead depend on a network of validators. As a result, the overall energy consumption of Ethereum is expected to decrease by a remarkable 99.9%.
Mark Cuban expresses his support for the merge, emphasizing the importance of addressing the energy usage issue. His positive outlook on the move to proof of stake is grounded in the long-term benefits it offers, even though he acknowledges uncertainty about its future value.
Furthermore, Cuban's enthusiasm for Ethereum is not new. He has previously discussed his interest in Ethereum's applications and use cases, particularly highlighting the impact of smart contracts. Smart contracts, described as collections of code executing a set of instructions on a blockchain, are credited with transforming the landscape by enabling the creation of decentralized finance (DeFi) and non-fungible tokens (NFTs). Cuban sees these innovations as driving the adoption and usage of Ethereum.
Cuban's cryptocurrency portfolio includes Ether (ETH), Bitcoin, and Dogecoin, indicating a diverse range of investments in the digital asset space. Additionally, he holds a few NFTs and has investments in blockchain companies, many of which are focused on enhancing the Ethereum ecosystem.
In summary, Mark Cuban's support for the Ethereum merge is rooted in a broader perspective on blockchain technology, emphasizing the importance of addressing environmental concerns and recognizing the transformative potential of Ethereum's applications, particularly smart contracts, DeFi, and NFTs. Cuban's diversified cryptocurrency portfolio and investments in blockchain companies further underscore his belief in the long-term viability and innovation within the crypto space.
