Ethereum’s “The Merge” Is Almost Here

Ethereum’s shift to proof-of-stake from proof-of-work is one of the most anticipated events in cryptocurrency. The Merge is a long-awaited milestone in Ethereum’s journey expected in Q3/Q4 2022. Once Ethereum shifts from PoW to PoS, validators who have staked the required 32 ETH will take over the role of adding new blocks to the blockchain.

Idea of Ethereum Mainnet

From 2016, enterprises have been experimenting with blockchain technology. Enterprises focused largely on private enterprise blockchains, but since 2019 there has been a shift in thinking about public vs private blockchains for business applications.

With a survey, 75% stated that they’re likely to leverage public blockchains in the future. As it includes

  • Transparency
  • Cost efficiency 
  • Better Security
  • The ability to interoperate with all of the other applications.

Mainnet is the primary public Ethereum production blockchain, where actual-value transactions occur on the distributed ledger. The move towards PoS has been labeled the merge because it involves merging the current Ethereum blockchain with the Beacon chain.

Source: Ethereum.org

“The Merge”

PoS validators need to create new blocks, while omitting the need to mine blocks to maintain the network.  The core elements of the merge will be the Beacon Chain and sharding.

The Beacon Chain

  • Introduction to the beacon chain won’t change anything in the present Ethereum ecosystem.
  • It introduced proof-of-stake to the Ethereum ecosystem.
  • It will coordinate the network, serving as the consensus layer as shown in the above diagram.
  • It is essential to upcoming scaling upgrades, such as sharding.

Sharding 

  • Sharding is a multi-phase upgrade to improve Ethereum’s scalability and capacity.
  • Sharding provides secure distribution of data storage requirements
  • It’ll make nodes easier to operate.
  •  It’ll enable rollups to be cheaper.
  • They enable layer 2 solutions to offer low transaction fees while leveraging the security of Ethereum.

PoS will reduce energy consumption of the network by at least 99.95%, after this merge. Although proof-of-work is reliable and secure, the benefits of proof-of-stake include:

  • Efficient use of energy
  • Less risk of network centralization
  • No requirement for advanced and expensive hardware 
  • After the Merge, rewards will not go to miners, and go to stakers instead.

The complexity of such a change to Ethereum’s code requires multiple tests on various testnets. By far no significant glitches have been reported. The merge is significantly to be proven the right step and the Ethereum network is surely going to be the most valuable blockchain shortly. This merge is definitely going to change Ethereum forever for the better.

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AUTHOR

Ummehani J

Digital Marketing Manager


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