The Ethereum Merge was successfully completed on September 15, 2022. You are here because you want to learn more about this historic event.
Ethereum is a Crypto currency that doesn’t need introduction. It has opened up a whole new world of possibilities for Crypto. Ethereum is currently second in market capitalization to Bitcoin.
The Ethereum Blockchain was operated using a Proof of Work consensus mechanism. The first stage of the Merge process was complete, and the Bellatrix Upgrade was completed on 6 September. After the Paris Upgrade of the Merge, Ethereum now has a Proof of Stake ( POS ) consensus mechanism. This change is expected to improve the efficiency of the Ethereum Blockchain by 99.95%.
All upgrades to the Ethereum network are part a complex development roadmap that aims at making Ethereum the most reliable, sustainable and scalable Blockchain solution.
Ethereum Merge: Proof Of Work Vs Proof Of Stake
POS validates transactions based on ETH staked and verified by multiple validators. This system is more efficient than POW and consumes nearly 99% less energy. Since 2015, when the blockchain was first launched, the Ethereum community has been working to transition to POS.
The Beacon chain, which works on a Proof-of-stake structure, was launched by Ethereum in December 2020 as a first step toward the transition.
Continue reading: Proof of Work (POW vs Proof Of Stake (POS).
Ethereum Merge Dates
As part of the Merge process, two upgrades took place
The Bellatrix Upgrade took place on September 6, 2022 at 16.30 IST (11:00 UTC). This upgrade purchased the Beacon layer of Ethereum that runs on Proof of Stake (POS), to the Ethereum chain that ran on Proof of Work earlier. The Paris Upgrade took place on September 15th 2022 at 12:12 IST (6:42 UTC). This upgrade changed Ethereum from Proof of Work to Proof of Stake (POS).
What happened before the merger?
Before the Merge, the Beacon protocol protocol was used. This upgrade introduced Ethereum staking. The beacon chain is a network of accounts that links Stakers. To run the Ethereum Validator Software, one does not need to solve complicated problems or mine coins. Instead, one can stake Ethereum and validate transactions and receive ETH as reward. In the event that users stake crypto, the POS blockchain can penalize them.
What happens after the merger?
Sharding is the next step after the Merge. Sharding involves the process of dividing the data between the nodes in the network. This will decrease network congestion and increase transaction speed. According to Vitalik Buterin Ethereum will be capable of processing close to 100,000 transactions per minute in the future. This is a lot more than the 25 transactions per second currently being processed. The Sharding of Ethereum Network should occur sometime between 2023 and 2023 depending on how fast Merge development occurs.
Data can be shared using Sharding, which lowers the load on each node. A node can run on less processing power. This will make it more affordable to run a node and help with decentralisation. If Sharding succeeds, there may be a day when people can run nodes from their smartphones and laptops.
Continue reading: Ethereum Upgrade Will Process 100,000 Transactions per Second
How to prepare for Merge
Holders of ETH do not need to worry about their assets. Investors’ holdings are not affected by the Merge upgrade. Investors should be pleased that the upgrade will make the Ethereum Blockchain more efficient. This upgrade will signal the end of the Proof of Work ( POW ) era of Ethereum and the start of a more sustainable Blockchain solution.
The history and genesis of Ethereum blockchain are intact. The Ethereum Blockchain’s future developments will have a positive impact on its users in the long-term.
Myths about Ethereum Merge
The Network Gas Fee will not be reduced by Merge. Merge changes the consensus mechanism. It doesn’t affect network congestion or transaction throughput. The Merge will not affect the Gas fee. However, there may be slight speed differences. The Ethereum Merge Upgrade didn’t cause any downtime for Layer 1 Blockchain. Merge is intended to transform Ethereum to a POS system with zero downtime.Netizens predict that the Staking Annual Percentage Ratios (APR) will triple after Merge. This claim that Staking rates would increase dramatically has been denied by the Ethereum community. According to the Ethereum website, current estimates suggest that APR could rise by 50%. Users are not allowed to participate in this upgrade process. You can participate in the upgrade by running a node or staking ETH. Participants with technical knowledge may also participate in Ethereum’s bug bounty program.
Learn more: What is Blockchain Layer?
Merge is a positive step towards making Ethereum more scalable and decentralised. Ethereum Merge’s development roadmap is expected to dramatically reduce costs, making Blockchain technology more affordable for everyone. Merge will allow more innovators to build their ideas on Ethereum Blockchain.
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