What is an Ethereum merger?
italioIn the last year, digital currency has strengthened its position among the general public and more people have become familiar with this type of currency. Bitcoin and Ethereum are among the most well-known digital currencies. Now the Ethereum network has decided to update and we want to explain in this article what Ethereum integration is.
What is an Ethereum merger?
Mergers are one of the hottest topics in the cryptocurrency community lately. In what is probably the most anticipated event in the cryptocurrency community in 2022, the Ethereum mainnet is set to merge with the Beacon chain’s proof-of-stake system. Merging is actually a cryptographic slang term used to describe Ethereum’s transition from a proof-of-work consensus algorithm to one that uses proof-of-stake. This new design is done to take care of the intensive energy mining process as well as secure the network using the stake holder’s ETH. This move is expected to provide more security, stability and scalability to the Ethereum network.
- Learn more about Ethereum
Beacon chain: Ethereum 2.0 processing engine
Beacon Chain is the cornerstone of Ethereum 2 architecture. It exists as a separate blockchain for the Ethereum network and runs in parallel. It has not processed any transactions on the mainnet, but reached consensus on its own. This happens by agreeing on their active validation and account balance. The Beacon chain is protected by a proof-of-stake consensus algorithm, unlike the Ethereum mainnet, which still runs on proof-of-work. Created on December 1, 2020. Simply put, Beacon Chain has been working as a true testnet for Ethereum 2.0 so far, but everything is about to change with the merger.
When is the merger?
It’s worth noting that Ethereum 2.0 has been in the works for years, and the exact date of integration seems to be in the not-too-distant future. It all came to an end on July 14th, 2022, when a member of the Ethereum Foundation shared a timeline with what was later described as a plan for a merger. Finally, the Ethereum platform update may happen this summer. At a meeting at the beginning of June 2022, Vitalik Buterin, one of the founders of Ethereum, said that the “Ethereum Merge” will be completed this summer.
- The most important digital currencies in the market
How to prepare for integration?
This is one of the biggest events in the entire history of the cryptocurrency industry and because of that, there is a chance that some bad guys will try to exploit it and scam innocent people. This is why it is important to know that ETH users and holders do not need to do anything with their funds or wallets before the merge.
Ethereum after the merger
One of the promises of Ethereum 2.0 is scalability, and Vitalik Buterin claimed that the network could process hundreds of thousands of transactions per second. However, The Merge is only the first of five stages of protocol input development.
- 5 Great Alternatives to the MetaMask Cryptocurrency Wallet
Five misconceptions about mergers
As Marj is a big and anticipated event, many misconceptions are prevalent in the cryptocurrency community. Here are five of the most common.
- It takes 32 ETH to run a node : two types of nodes in the Ethereum There are network. One that can suggest blocks and one that can’t. They are not required to commit ETH, they do not propose blocks, but they are integral to the security of the network because all proposers of the block are held accountable.
- Gas Fees are reduced after the merger : the merger changes the overall consensus algorithm and does not increase the network capacity. That’s why it doesn’t lead to lower gas costs. However, there are scaling solutions being developed that are designed to do this, most of which are targeted at the second layer.
- Transaction speed will be greatly increased : The transaction speed on the mainnet will remain relatively constant even after the merger, although there will be minor changes.
- Merge will lead to total network failure : The Merge upgrade is designed in such a way that the failure will not be zero. The network should always work as intended.
- All shares will be withdrawn after the merge : Validations leaving the network will have a limited rate. This is done for security reasons. There are limits that allow withdrawals of approximately 43,200 ETH per day
