Here’s What You Need To know About Ethereum Merge In Mid-September
Tim Beiko, the lead developer of Ethereum, suggested September 19 as a “tentative date” for the launch of The Merge on the Ethereum (ETH) core network.
As a result, Ethereum has reached the final stage regarding the expected upgrade that will terminate the mechanism proof-of-work (PoW) used to mine ETH and replace it with Proof of Stake (PoS).
Why is Ethereum switching to proof-of-stake?
Ethereum is getting closer and closer to upgrading The Merge by moving away from the consensus mechanism proof-of-work (PoW) to proof-of-stake (PoS), which provides provision to make the ETH network more resource efficient, comprehensive and environmentally friendly.
So why is The Merge important for the Ethereum blockchain and Web3 as a whole?
The Merge will replace the PoW mechanism with PoS, and as a result, the Ethereum network will be monitored by the people who stake instead of the miners.
This will be the first time in the history of crypto that the mainstream protocol has drastically changed the pattern of consensus.
The Merge of Ethereum has been enabled on the Kovan and Sepolia test networks, the activation on Goerli will be the last time it will go live on the main network.
With this proof-of-stake (PoS) it will bring less power consumption, lower network carbon emissions and thus decentralized even more
when launching proof-of-stake Once completed, the next step will be to move towards sharding.
The first time the Ethereum proof-of-stake requirement was revealed was about two years ago.
What is proof-of-stake?
Proof-of-stake (PoS) is a blockchain consensus algorithm where reviewers vote on the next block before it is added to the PoS chain. This is an algorithmic improvement over PoW, that comes with resource efficiency, environmental friendliness and safety parameters better decentralized.
To join staking, there is no need to purchase expensive mining equipment. There are chain-based and BFT-based proof-of-stake (PoS) systems.
Proof-of-stake systems rely on stakers in their operations: every validator should “stake” (freeze) his/her tokens to guarantee his/her commitment to the integrity of the protocol.
By Q3, 2022, Ethereum’s rival, Cardano (ADA), is the largest proof-of-stake system. As such, to join Ethereum’s proof of stake, a crypto enthusiast should stake at least 32 Ethers (ETH) or almost $50,000 by press time. Two months before the mainnet release of Ethereum’s proof of stake, 13,125,461 Ethers are staked in its “deposit contract,” or over $20.6 billion.
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Technically, Ethereum began its journey to switch to PoS in December 2020 with the introduction of deposit contracts and the activation of the Beacon Chain, the basic PoS mechanism.
In September 2022, the entire audit infrastructure will move to PoS.
The Merge initially
The Merge is at the heart of the integration of the existing ETH transaction execution layer on the Ethereum core network with the Beacon Chain as the new consensus layer. Miner’s ecosystem Proof-of-Work (PoW) is a consensus layer with a beacon chain that solves this problem here.
Thus, the Beacon Chain with all ETH storage contracts allocated for staking will be “packed” into the Ethereum main network.
Beacon Chain is responsible for all network data processing, including account balances, transactions, etc.
Beacon Chain becomes the engine of block production; proof-of-stake validators will be responsible for processing the validity of all transactions and proposing blocks. At the same time, the new system will keep the entire transactional history of the old Ethereum (ETH).
Timeline to The Merge
June 30, 2015: Ethereum (ETH) launched on the main network based on PoW consensus.
Q2 2019: Ethereum (ETH) Developers now offer Casper, an advanced implementation and solution to how the ETH blockchain can migrate to PoS.
Early March 2020: Vitalik Buterin, along with co-authors, publishes GASPER, a more advanced implementation of the Beacon Chain.
20 November 2020: Ethereum 2.0 Deposit Contracts launched with Ethereum Equity Staking with a Minimum of 32 ETH; Ethereans Starts Injecting Liquidity
December 1, 2020: The Beacon Chain was launched as a parallel network to the main Ethereum network.
October 28, 2021: Beacon Chain Upgrades Altair After ETH Price Hits All-Time Highs
Q1 2022: Ethereum conducts The Merge test on the Kintsugi and Kiln test network, quietly enabling “shadow forks”.
June-July 2022: Ethereum (ETH) Merge Launches on Public Test Networks Ropsten and Sepolia.
July 15, 2022: Merge activation on the main network is tentatively scheduled for mid-September by coordinator Tim Beiko.
Will the Merge upgrade affect the price of Ethereum?
As The Merge is Ethereum’s most significant upgrade, many ETH holders and big investors wonder if it will affect the Ether price.
Usually, every major upgrade is like a powerful short-term catalyst for the price of altcoins. Additionally, with the transition of Ethereum (ETH) to the PoS mechanism, ETH holders are incentivized to lock their coins for staking, which will greatly reduce sales pressure.
We’ll probably have to wait and see when the upgrade happen, what surprises it will bring.
