The Ethereum Merge Is The Most Significant Upgrade In The Network’s History That Marks The Network’s Transition To Proof-Of-Stake
Everyone in the crypto industry has been talking about Ethereum merge over the past few weeks. Ethereum Merge, or The Merge, is one of the most awaited events in the history of crypto. It refers to the transition of Ethereum from a Proof of Work (PoW) to a Proof of Stake (PoS) consensus mechanism. The transition is likely to take place between September 13 and September 16, 2022, when the Total Terminal Difficulty (TTD) reaches a value of 58750000000000000000000.
Before And After The Merge
As of now, the proof-of-work mechanism secures the Ethereum mainnet, whereas the Beacon Chain runs in parallel using the proof-of-stake mechanism. After the Merge, the two systems will come together instead of functioning parallelly, paving the way for the replacement of proof-of-work by proof-of-stake.
What Will Happen During The Merge?
- The Merge comprises two upgrades: The Bellatrix Upgrade and The Paris Upgrade. The Bellatrix Upgrade is likely to happen on September 6, 11:00 UTC.
- The Bellatrix Upgrade is necessary for the consolidation of the proof-of-stake chain with the current execution layer. ETH and ERC 20 deposits will be on hold during the Bellatrix Upgrade. Deposits and Withdrawals will be resumed only after the upgrade.
- The Bellatrix Upgrade will be followed by the Paris Upgrade, which is expected to take place between the 13th and 16th of September. The upgrade will ensure the transition of Ethereum from proof-of-work to proof-of-stake.
- ETH and ERC 20 deposits and withdrawals will be on hold on September 15 in view of the Paris Upgrade.
- Trading will continue as usual during the Bellatrix Upgrade.
What Happens After The Merge?
The Merge marks the end of the proof-of-work consensus for Ethereum and the transition to proof-of-stake. Proof-of-stake will allow further scalability upgrades, which were impossible with the proof-of-work consensus. However, The Merge will not lead to a reduction in gas fees. It simply means the change of consensus mechanism and not the expansion of the network.
What Is The Need For The Ethereum Merge?
The energy consumption in the crypto industry has always been under the scanner. An Ethereum transaction requires energy equivalent to the energy required to light up the Leaning Tower of Pisa. Crypto mining requires extremely high computational power. The Merge marks the launch of Ethereum 2.0, which aims to be more efficient and sustainable. The upgrade will cause the division of the Ethereum network into smaller data blocks. The division will help in increasing transaction speed. The Merge will also make mining more environment-friendly, which is a major achievement for the Ethereum network.