Ethereum completed its final test prior to The Merge with the successful Goerli testnet implementation. The successful test has moved the Ethereum network closer to the full transition from proof of work to proof of stake, bringing certainty that The Merge is now imminent.
As a result, Ethereum’s price jumped 45% as investors’ hopes rose. Ethereum’s developers have been working on this upgrade for years with The Merge scheduled many times but without success. This time, it seems Ethereum is finally ready for the full transition.
What Is the Ethereum Merge?
The Ethereum merger, typically referred to as “The Merge,” refers to the switching of the current Ethereum proof of work algorithm to a new proof of stake consensus algorithm, also referred to as the Beacon Chain. The transition will bring an end to the energy-consuming proof of work network and usher in the new proof of stake consensus.
Beacon Chain currently runs as a parallel proof of stake network until The Merge, which will replace the proof of work mainnet completely with the Beacon Chain proof of stake layer.
This will be the most significant upgrade in Ethereum’s history. In fact, the Goerli test is considered to be one of the most critical tests in crypto history.
Why Is The Ethereum Merge Important?
The Merge is a critical part of Ethereum’s future because it will mark the final transition of Ethereum from a proof of work consensus to a proof of stake one. This will come with many advantages, one of which is the elimination of energy-intensive mining. Instead, the network will use staking to secure the network.
Up to now, Ethereum has suffered setbacks such as outrageous transaction fees and low scalability, which gave rival networks such as Solana a competitive advantage.
When completed, The Merge will eliminate Ethereum’s high gas fees and deliver better scalability, security, and sustainability.
When Will Ethereum Switch to PoS?
The switch to PoS is scheduled to take place on 19 September 2022. This is the day when the transition to a proof of stake mainnet will be completed.
What Should You Do Before the Ethereum Merge?
Ethereum holders and stakers who don’t play any technical role on the network don’t have to do anything to prepare for The Merge. Your Ethereum or any other asset based on the blockchain is safe before, during, and after the blockchain merge, so you don’t have to do anything to secure it.
Transaction history and everything else will remain intact, so no upgrade is required. However, scammers are likely to attempt to take advantage of The Merge to steal funds either by asking users to upgrade or do other things, so watch out.
How Can You Benefit?
When the Ethereum Merge is completed, the network will change to a proof of stake network. This means that Ethereum holders will be able to stake their holdings to secure the network. In return, they will get rewarded with new coins.
You can be one of the stakers if you hold a sufficient number of Ether when the mainnet finally goes live. In addition, the network will have much lower fees, so you can easily stake and withdraw rewards without suffering the high fees that Ethereum users currently pay.
The Ethereum Merge Is Finally Here
The Ethereum team has been working on The Merge for years, and finally, it is becoming a reality. This will be a historic day as it will be the first time a crypto network switches from proof of work to proof of stake.
The switch will also be significant because Ethereum is the network upon which most smart contracts and DApps are built. The increase in scalability and reduction in fees will therefore be a major contributor to the growth of the network and the crypto space in general.
Read the full article here