The Merge is expected to materialize within Q3/Q4 2022. The client developers are currently working to a soft deadline of 19th September 2022, but this could change depending upon the success of the final testnet merge (Goerli) in mid-August, continued client refinements and the hashrate of the existing miners continuing in a predictable manner.
Vitaliks Buterin tweeting on the merge noted , ““Reminder: even though the merge is coming around Sep 10-20, the beacon chain hard fork is on Sep 6. Make sure to update your clients before then!”
The Ethereum blockchain is set to transition from its current proof-of-work (PoW) consensus mechanism to proof-of-stake (PoS), aimed at improving the network’s impact on the environment.
There is a chance that The Merge will result in a contentious hard fork, which will cause ETH holders to receive duplicate units of hard-forked Ethereum tokens, similar to what happened when the Ethereum and Ethereum Classic hard fork occurred in 2016.
The Merge represents the joining of the existing execution layer of Ethereum (the Mainnet we use today) with its new proof-of-stake consensus layer, the Beacon Chain. It eliminates the need for energy-intensive mining and instead secures the network using staked ETH. A truly exciting step in realizing the Ethereum vision – more scalability, security, and sustainability.
In bullet point summary, the merger will achieve the following:
- Soon, the current Ethereum Mainnet will merge with the Beacon Chain proof-of-stake system.
- This will mark the end of proof-of-work for Ethereum, and the full transition to proof-of-stake.
- This sets the stage for future scaling upgrades including sharding.
- The Merge will reduce Ethereum’s energy consumption by ~99.95%.
The Merge represents the official switch to using the Beacon Chain as the engine of block production. Mining will no longer be the means of producing valid blocks. Instead, the proof-of-stake validators assume this role and will be responsible for processing the validity of all transactions and proposing blocks.
No history is lost. As Mainnet gets merged with the Beacon Chain, it will also merge the entire transactional history of Ethereum. You don’t need to do anything. Your funds are safe.
What do I need to do to get ready?
The Merge is one of the most significant and anticipated upgrades in the history of Ethereum, and although in the long-term its impact will be felt by everyone, in the near-term some folks will need to take action to be fully prepared.
Users and Holders.
According to statement from Ethereum organization, You do not need to do anything to protect your funds entering The Merge.
This bears repeating: As a user or holder of ETH or any other digital asset on Ethereum, as well as non-node-operating stakers, you do not need to do anything with your funds or wallet before The Merge.
Despite swapping out proof-of-work, the entire history of Ethereum since genesis remains intact and unaltered after the transition to proof-of-stake. Any funds held in your wallet before The Merge will still be accessible after The Merge. No action is required to upgrade on your part.
As we approach The Merge of Ethereum Mainnet, you should be on high alert for scams trying to take advantage of users during this transition. Do not send your ETH anywhere in an attempt to “upgrade to ETH2.” There is no “ETH2” token, and there is nothing more you need to do for your funds to remain safe.
What are the professional trader outlooks for the Ethereum Merge?
With the crypto market continuing to fall, could this be the last chance to purchase crypto at these low prices or are we going to go lower?
Investors within the Ethereum network have showcased their support before the upgrade. Especially, institutional investors. These cohorts accumulated the token, taking advantage of the opportunity to pick up the asset at lower prices.
Consider this- prominent crypto analyst Michaël van de Poppe offered this technical analysis of ETH’s latest price action. As per the analyst, ETH could see its price go above the $2k mark following the transition.
ETH Whales and Demand
If, on the one hand, the movement of whales can cause the price of ETH to fall, the general demand for the asset continues to be a bullish indicator. A CryptoQuant analyst highlighted that the cryptocurrency currently has the highest demand on the market.
In August, Ethereum accounted for 40% of all trading volume in the cryptocurrency market, while BTC snapped up around 30%. In this way, The Merge continues to boost the asset, despite the price corrections that the crypto market suffered in recent days.
Also Read: Ethereum Transitions From PoW to Proof of Stake (Ropsten Testnet)
In a statement, Binance announced that security measures will be taken in relation to The Merge. Users of the world’s largest exchange in terms of trading volume will be unable to deposit or withdraw ERC-20 tokens on September 6.
On this day, the merger will be updated in the Bellatrix consensus layer, which will mark the initial step towards ETH 2.0.
Discover more from DiutoCoinNews
Subscribe to get the latest posts sent to your email.
