ZoneBitcoin EditorialAfter years of waiting, Ethereum's Merge update finally has a date: September 19! (The date may vary however).
Ethereum (ETH) is the blockchain which has allowed technology to evolve to a higher level. It is thanks to the Ethereum network that we have been able to develop decentralized finance so much.
Also, due to its seniority, the visibility of the founders, its innovation and scalability, Ethereum is ranked second in terms of market cap after Bitcoin.
It is indeed the most popular and most used smart contract blockchain by blockchain developers.
Faced with many Ethereum Killers, Ethereum has always wanted to stay in the race. The network seeks to constantly improve.
After years of waiting, the long-awaited The merge update is really approaching.
What is The Ethereum Merge?
The biggest change was the transition of its consensus mechanism. Ethereum 2 is the version that works on proof-of-stake.
In reality, now, for this deep "transformation", it is what is called The Merge. (Note: merge in English means fusion).
This is the most anticipated event in the history of cryptocurrencies. There are three main objectives for achieving this transition. It is to make Ethereum more scalable, more secure and more ecological.
(👋 To find out more, you can read our article: What is Ethereum (ETH)
According to the Ethereum Foundation, The merge represents the merger of the execution layer of Ethereum (the network we currently use) with the new layer running on proof-of-stake consensus, called Beacon.
This merger will therefore allow the Ethereum network to no longer operate with proof-of-work. The latter being energy consuming and technically difficult, this seems to be the ultimate improvement of the Ethereum blockchain.
Thus, with The Merge, we will no longer have to mineEthereum but staking the crypto 'ETH.
The complexities of setting up The Merge
Ethereum Merge was the biggest challenge that Ethereum undertook. The network, due to its popularity, quickly experienced congestion problems with significant transaction fees (gas). Faced with such obstacles, other blockchains emerged as interesting and cheaper alternatives.
This is how we have seen the rise of multiple blockchains like Binance Smart Chain, Avalanche, Solana and even layer 2 as Polygon (MATIC).
So, compared to other “competitors”, Ethereum had much lower transaction speeds. Likewise, gas fees were much higher than on other networks.
Ultimately, Ethereum had no choice but to upgrade.
However, this adjustment was not without difficulty. It was a real project which took place in several stages.
Some detractors have criticized the fact that it took a long time with serious delays in execution. This is probably forgetting that the Ethereum merge is not a small, light modification.
Its entire mode of operation has been changed, without creating any disruption on the main network.
Ethereum also wants to reward all the people who accompanied this perilous adventure and who believed in Ethereum 2.0.
The timeline of the 6 major Ethereum updates
There have already been several updates and advancements that are getting ever closer to the final result, namely The Merge.
| LONDON HARD FORK | August 5, 2021 |
| ALTAIR UPGRADE | 21 October 2021 |
| ARROW GLACIER | 9 December 2021 |
| KILN TESTNET MERGE | March 16, 2022 |
| MAINNET SHADOW FORKS | 12 April 2022 |
| SEPOLIA TESTNET MERGE | July 6 2022 |
Here are the different Ethereum updates in detail.
The London Hard Fork – August 5, 2021
After the launch of the Beacon Chain, there was the famous "London Hard Fork" on August 5, 2021. This helped miners interact with improvements such as EIP-1559*. This allowed for a reduction in network fees. It was also the step that ended financial incentives for miners. They were then forced to stop mining ETH. The EIP-3554 update was delayed until December 2021.
*You can learn more about EIPs (Ethereum Improvement Proposals) here.
THEAltair Upgrade - 21 October 2021
This was the update for the Beacon channel. This pushed node operators to upgrade. Nodes that had not updated then took the risk of no longer being able to participate in the network after the Ethereum Merge.
The Arrow Glacier (December 9, 2021)
The Arrow Glacier upgrade pushed back Ethereum's planned date by several months...By that time, many people had begun to doubt the possibility of the transition...
Kiln Testnet Merge (March 16, 2022)
Merge here refers to the merger between the Klin test, the proof of work layer and that of the Beacon chain. The Merge generally worked well even if - obviously - there were some bugs and anomalies at the start. Everything has since been corrected.
The Shadow Forks mainnet (April 12, 2022)
There, this involved the merger of a small number of network nodes, for the transition from PoW to PoS. The forks made it possible to test the network and be able to run simulations. This was necessary to test the final merge under realistic conditions.
The Sepolia Testnet Merge (July 6, 2022)
The public testnet, called “Sepolia” became the second largest testnet to allow for a smooth transition to the merge. The entire change and transition from PoW to PoS happened during this update.
Sepolia would then replace the PoW Ropsten testnet which was previously used in the Ethereum blockchain.
The next key dates are the arrival of Goerli/Prater on July 27 and 28, the Merge update on Goerli testnet on August 11. There will also be the Bellatrix update at the beginning of September which will permanently deactivate Ethereum's proof of work.
Thus, the final implementation of The Merge of Ethereum will take place (is planned) on September 19.
Why is The Ethereum Merge going to happen?
Merging is essentially a process to move the Ethereum blockchain network from a PoW to a PoS. It is well known that the process is extremely complicated and must be monitored even after implementation to quickly detect bugs and resolve them.
What will happen after Ethereum's Merge?
After the merge, there will be a new process called "sharding". Sharing means splitting. This is the process that will prepare the network for Ethereum 2.0 Shard chains that will operate only on PoS.
This will then distribute the workload across 64 blockchains, and these split chains will provide additional layers. This will then make it simple to store data separately.
Sharding is also very important for layers 2, which will then benefit more from the security and speed of the network.
The pros and cons of Ethereum Merge
Advantages :
✅ This will be the long-awaited transition from proof of work to proof of stake. No more need for mining equipment to participate in the network.
✅ The Merge will reduce Ethereum's energy consumption by approximately 99,95% of the current network.
✅ This will make the network more scalable.
The inconvenients
❌ At the moment, it is difficult to predict the future. This is currently the only drawback we see…
How the Ethereum Merge can impact your crypto investment?
Many people believe that the success of The Merge will push growth on Ethereum. Even without the update, Ethereum was number 1 in terms of T. Likewise, it is the network which has the most blockchain developers.
It is also likely that other crypto projects that are backed or linked to the Ethereum blockchain will benefit directly.
Thus, the networks Polygon (MATIC) or Arbitrum will then benefit from this increase. Even if Ethereum updates, it will necessarily need layer 2 if the use of DeFi remains as important.
- 📹 Watch the video for understand the layer 2 on Youtube.
- 🙂 Read our article to find out the future of layers 2 on Ethereum?
When will The Ethereum Merge take place?
According to the official website of The Ethereum Foundation, the Merge will take place on September 19. However, it is worth remembering that it is likely that the Merge will be delayed or even happen at an earlier date. In fact, very often, the timeline of Ethereum updates has not been "followed to the letter".
What is the future of Ethereum?
In fact, we cannot predict anything about the future with precision. However, the merge will mark the definitive end of proof of work.
It will also be the revival of Ethereum in that it will become a more sustainable and environmentally friendly blockchain. Many blockchains have in fact bet on green blockchains, as is the case for example withAlgorand.
Given the current circumstances of the climate situation, this is fantastic news.
Better yet, the Ethereum merge will make the network more scalable and more secure. This will necessarily attract new people who had abandoned ETH.
Thus, regarding the future of Ethereum, we can think that its leading position will then be preserved. We can even think that it will further dethrone the competitors.
What will become of Ethereum miners after the merge?
Ethereum miners have already been preparing for the Ethereum merge for several years. Thus, it will no longer be possible to mine ethereum once the merge is in place.
However, they are not going to throw away their equipment because the algorithm also allows them to mine Ethereum Classic (ETC) or other less known altcoins such as Ravencoin (RVN).
Better yet, miners can then become network validators. However, you must have 32 ETH and some technical knowledge.
However, if they are convinced Ethereum miners, very logically, they will certainly do Ethereum staking. It is indeed the royal road to earn Ether (ETH).
Frequently asked questions from investors
What is the Ethereum Merge?
This is the transition from Ethereum's proof-of-work consensus to a proof-of-stake consensus. This then reduces the energy consumption of the blockchain by more than 99%. We also call the merge, Ethereum 2.0.
What is Ethereum 2.0 or “Eth2”?
The term "Eth2" is getting deprecated as we approach The Merge. When the Eth1 and Eth2 chains merge, there will be only one Ethereum.
To avoid future confusion, here's how to use the terms:
- “Eth1” is the 'execution layer', which operates and executes transactions.
- “Eth2” is now the “consensus layer”, which manages proof-of-stake (PoS) consensus.
Will the price of ETH increase after the merger?
Some experts and traders expect the price of ETH to increase after the merge, around mid-September. In fact, the reasons for this increase could be logical:
- Greater visibility from the media who will talk about TheMerge.
- Transaction speeds will be faster.
- Network improvement and scalability will push more blockchain developers to create projects on the network.
Will the Ethereum merge reduce gas fees?
In fact, the Ethereum Merge is not an expansion of network capacity. Thus, the gas fees can fall (and follow the price of ETH) but not necessarily.
When will the Ethereum Merge take place?
Ethereum Merge is scheduled for September 9, 2022.
Note: We wrote this article following the information provided on the official Ethereum website, here.
Read other articles related to the topic:
- What is Ethereum (ETH)? Here's what you absolutely need to know
- What impacts does Ethereum 2.0 have on layer 2 solutions?
- But why have gas prices on Ethereum climbed so much?
- 🤑 How earn ETH.
Note: No financial advice is given in this or any other article on zonebitcoin. This is information of which you are the sole judge and master. Be responsible with your investments and only invest as much as you are willing to lose.
Our affiliate links:
Buy cryptocurrencies (the easy way):
Generate interest on your cryptocurrencies:
- Public chat Youhodler (Earn up to 12% interest)
Secure your cryptocurrencies:
To have fun and play
- The best for Esport and bitcoin sports betting : CloudBet
- Discover the bitcoin casinos
