Ethereum is the mining service provider with the largest computing power in Ethereum. After the blockchain completes a historic technical upgrade, it will shut down servers for miners.
The news comes on the eve of Ethereum’s much-anticipated software transformation, dubbed “the merger”, that will transform the most commonly used blockchain from a proof-of-work consensus mechanism to proof-of-stake. This means that, in less than 24 hours, Ether can no longer be mined on Ethereum, as the powerful graphics cards used to verify transaction data will be replaced by investors who hold Ether. Going forward, these validators will effectively secure the Ethereum blockchain and verify data on the network.
What is the merger or fusion of Ethereum？ The Ethereum network will take a very important step in its evolution from September 15th to 17th. This is an update called a merge that involves changes to the network’s authentication system.
What is the modified content? Currently, Proof of Work (PoW) is used as the consensus mechanism, but it will now be merged with the verification layer of the Proof of Fairness (PoS) system being tested, called the Beacon Chain.
Of course, this event will be accompanied by other initiatives to help Ethereum become a more energy efficient, less centralization risk, less hacking, more secure, and more scalable network. But, of course, this change creates many doubts, questions and uncertainties. So, what every user should know about the Ethereum merger is worth reviewing.
Cryptocurrencies: What Happens to Those Who Own Ethereum？
Those users or investors who have Ethereum (ETH, the Ethereum cryptocurrency) in their wallets should have nothing to worry about. Nor should they take any specific action for integration.
None of the above operations will be deleted, nor will the ETH balance seen by the holder disappear. In fact, everything will remain the same, but there is now a processing system that is expected to be faster and more scalable.
This update paves the way for further improvements and reductions in the cost of creating and transacting on Ethreum in 2023. For its part, nothing will change in terms of interactions within the dapps and web3 ecosystem.
Important information for users. The most important thing for users and holders to know is whether it is necessary to exchange ETH for any other token, or sell it, or take it out of the wallet. In this sense, advice to buy “new Ethereum tokens”, “ETH2.0″ or other similar pitfalls needs to be rejected due to the constant scams surrounding the circulation of cryptocurrencies.
Merge: what changes did the pos mechanism bring?
The first thing that must be stated is that PoS, or Proof of Stake, is a mechanism that specifies all the rules and incentives for validators of Ethereum transactions to agree on the state of the network. In this regard, the merger aims to increase the efficiency of the Ethereum network by eliminating the need for mining, which is an intensive use of energy and computing or processing power. Also, the reward after creating a new block will be removed. Once the merger is complete, the carbon footprint of each operation on Ethereum is expected to be reduced to 0.05% of its current environmental impact.
How will PoS work and how will the validators be?
This update can help further decentralize Ethereum by democratizing access to permissions for network validators to become post-PoS ETH validators, the amount will remain at 32 ETH to activate your own validation, but no longer required as before PoW does have specific hardware.
If, in the work permit, cryptographic verification is guaranteed by energy consumption, then in the certificate of stake, it is guaranteed by the cryptographic funds the candidate already has, which he temporarily deposits in the network to be able to do so.
In principle, the cost of running on Ethereum will not change, as the transition from PoW to PoS will not change any aspect of the network related to gas costs
However, merging is a step towards future improvements (eg, fragmentation). In the future, natural gas costs could be reduced by allowing blocks to be produced in parallel.
In time, the merge will slightly reduce the operation time and ensure that a block is generated every 12 seconds instead of the current 13 or 14 seconds.
Remember that Bitcoin can make up to 7 transactions per second. The two largest credit card and payment processing brands in the world have 24,000 transactions per second and 5,000 transactions per second, respectively.
To better understand these numbers, Sebastin Serrano, co-founder and CEO of Ripio and one of the greatest academics and experts in the blockchain field, explained: “As PoS changes and Surge is completed, the capacity of the network will From 15 transactions per second (tps) to 100,000 transactions per second.
We can see that the merge does not come alone, but is accompanied by a number of other processes with strange names: surge (after this, the capacity of the network will be from 150,000 to 100,000 transactions per second); edge; purge and splurge.
There is no doubt that Ethereum has been evolving and will continue to surprise us. So, for now, the key is to understand this update as the key to enabling future network scalability improvements.
Post time: Sep-15-2022