Ethereum merge

Crypto/NFT

Introducing Ethereum Merge, what you should know, opportunities, etc.

Ethereum Merge – The Ethereum management has announced and slated the launch date of Ethereum 2.0 for September 2022, according to the announcement, there will be two stages for 

the crypto asset to be public in the crypto market.

The first stage is Bellatrix which was completed on September 6, while the final stage, Paris, will happen between September 10th and 16th.

With just a few days to the final stage, the global crypto market is anticipating a new token – ETHW, to be generated after the hard fork once the ETH 2.0 is upgraded.

This merge is expected to improve the Ethereum network, with increased speed, and reduced gas fees among other benefits not leaving out the massive hike in price.

For a long time, ETH has been operating on proof of work which has seen so many problems in this network such as high gas fees, and slow transaction fees among others.

ETH Merge is poised to solve these problems and also initiate a significant shift in the Ethereum ecosystem in space.

Read also: What is NFT? How it works, benefits, etc..

What is the Ethereum Merge?

The Merge is the joining of the existing execution layer of Ethereum with its new proof-of-stake consensus layer, the Beacon chain.

It eliminates the need for energy-intensive mining and secures the network using staked ETH. This is a truly exciting step in realizing the ETH vision – more scalability, security, and sustainability.

The merge is a network upgrade that will alter ETH’s common consensus mechanism from proof of work to proof of stake, the Ethereum Merge is expected to happen on September 15, 2022.

What are you expected to do as a user or holder?

Everyone will feel the impact of the Merge going forward, some people may need to take action in the meantime to be fully prepared. The Merge is one of the most significant and anticipated updates in the history of Ethereum.

Users and holders in view

  • You must understand that users and holders do not need to do anything to protect their funds entering the Merge
  • There’s nothing you need to do with your money or wallet before the Merge if you are a user or holder of ETH, any other asset on Ethereum, or a stalker who is not running a node.
  • The history of Ethereum since its creation is preserved and unmodified after the switch to a proof of stake, despite proof of work being replaced. Any money you had in your wallet before the Merge will remain usable after the Merge, you don’t need to do anything to upgrade.

What is Proof of work?

Proof of work is the process of adding new blocks of transactions to a cryptocurrency’s blockchain. In this case, it generates a hash which is a long string of characters that match the target hash for the current block.

Read also: How to send and receive money straight to your local bank account using Cryptocurrency (Bitcoin)

The crypto miner who doe this wins the right to add that block to the blockchain and receive rewards, this is time as well as energy consumption, which makes it slow, packed, and a bit centralized as this favors people who have more equipment.

What is Proof of stake?

Proof of stake is a cryptocurrency consensus mechanism for processing transactions and creating new blocks in a blockchain. PoS uses an election process where one node is chosen to make the next block.

Proof of stake uses validators instead of Miners. Validators are people who validate transactions in a blockchain, validators don’t add blocks, they forge or mint new blogs.

To become a validator, you need to deposit several coins to become a node in the blockchain, the size of the deposit gives you more chances of getting chosen.

This is faster and more secure as validators who accept fraudulent transactions would bear the consequences.

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