Skip to content Skip to sidebar Skip to footer

Ethereum has completed its final test ahead of The Merge with the successful implementation of the Goerli testnet. The successful test brought the Ethereum network closer to fully transitioning from proof-of-work to proof-of-stake, providing certainty that the merger is now imminent.

As a result, Ethereum’s price jumped 45% as investors’ hopes rose. Ethereum developers have been working on this upgrade for years with The Merge scheduled for several times but without success. This time it looks like Ethereum is finally ready for the full transition.

What is Ethereum Merge?

two hands holding arms

The Ethereum merger, usually referred to as “the merger”, refers to the switch from the current Ethereum proof-of-work algorithm to a new one. proof of stake consensus algorithm, also called Beacon Chain. The transition will end the energy-intensive proof-of-work network and usher in the new proof-of-stake consensus.

Beacon Chain currently operates as a parallel proof-of-stake network until The Merge, which will completely replace the main proof-of-work network with the Beacon Chain proof-of-stake layer.

This will be the biggest update in Ethereum history. In fact, Goerli’s test is considered one of the most critical tests in the history of cryptography.

Why is the Ethereum merger important?

hands holding an open text book with a pink sticky not having the word important on it

The merger is a critical part of Ethereum’s future as it will mark Ethereum’s final transition from proof-of-work consensus to proof-of-stake. This will come with many benefits, one of which is the elimination of energy-intensive mining. Instead, the network will use staking to secure the network.

So far, Ethereum has suffered setbacks such as exorbitant transaction fees and poor scalability, which gave competing networks such as Solana a competitive advantage.

When complete, The Merge will eliminate Ethereum’s High Gas Fees and provide better scalability, security, and durability.

When will Ethereum switch to PoS?

The move to PoS is scheduled for September 19, 2022. This is the day the transition to a proof-of-stake backbone will be completed.

What should you do before Ethereum merges?

Ethereum holders and stakers who play no technical role on the network have nothing to do to prepare for The Merge. Your Ethereum or other blockchain-based asset is safe before, during, and after the blockchain merger, so you don’t have to do anything to secure it.

Transaction history and everything else will remain intact, so no upgrades are needed. However, scammers will likely try to take advantage of The Merge to steal funds by asking users to upgrade or do something else, so be careful.

How can you benefit from it?

computer screen with ethereum trading chart on it

Once the Ethereum merger is complete, the network will transition to a proof-of-stake network. This means that Ethereum holders will be able to stake their assets to secure the network. In return, they will be rewarded with new coins.

You can be one of the milestones if you hold enough Ether when the mainnet finally comes online. Additionally, the network will have much lower fees, so you can easily stake and withdraw rewards without incurring the high fees that Ethereum users are currently paying.

The Ethereum merger is finally here

The Ethereum team has been working on The Merge for years, and finally it is becoming a reality. It will be a historic day as it will be the first time a cryptonet has made the switch from proof-of-work to proof-of-stake.

The change will also be significant because Ethereum is the network on which most smart contracts and DApps are built. Increasing scalability and reducing fees will therefore be a major contributor to the growth of the network and the crypto space in general.

Source link

Leave a comment