Ethereum Merge
The Merge is known as one of the most relevant events in Ethereum history. It took years to be developed and validated until its final version was deployed. It also changed Ethereum's consensus mechanism, but its impact is far greater than it appears. Let's look at some other implications the Merge brought.
What is the Merge
The Ethereum Merge represents the ETH ecosystem switch from the energy-consuming consensus mechanism of Proof-of-Work (PoW) to the more energy-efficient mechanism of Proof-of-Stake (PoS). It stands for the merge of the Ethereum Mainnet with the Beacon Chain that had already been running PoS and replaced the energy-intensive mining with staking. This new development enabled Ethereum to keep sustainability while ensuring security and making a clear way for future scalability upgrades.
Read more:
PoW vs. PoS
Proof of Work (PoW) and Proof of Stake (PoS) are two different consensus algorithms used in blockchain networks to achieve distributed consensus.
PoW is a consensus algorithm that requires miners to solve complex mathematical puzzles to add new blocks to the blockchain. Miners are rewarded with a reward for their work. This requires a large amount of energy and computing power, which makes it expensive to run.
PoS is a consensus algorithm that rewards users for holding coins, rather than mining them. This reduces the cost of running the blockchain, as it does not require expensive computing power. It also reduces the risk of a 51% attack, as users must have a large stake in the network to control it.
Read more:
Beacon Chain, Sharding
A beacon chain is a type of blockchain used in the Ethereum network to coordinate and validate the network’s Proof of Stake (PoS) consensus algorithm. In this system, the network’s validators (known as “miners”) run special software called “beacons” to remain in sync with the Ethereum blockchain and validate new blocks. The beacon chain is responsible for securely keeping track of validator deposits, maintaining the Ethereum consensus rules, and randomly selecting the validators to create and confirm new blocks. The beacon chain is built on the Ethereum 2.0 platform and is designed to be more efficient and secure than the previous PoW consensus algorithm.
Read more:
Consensus Layer
The consensus layer is a layer of software that is used to help facilitate and secure distributed network operations. It is used to help come to an agreement between several computers, or nodes, that are connected to the same distributed network. It helps to ensure that each node follows the same set of rules and protocols, allowing them to process transactions and reach a consensus on the state of the network. It is an important part of any distributed network, as it helps to ensure that the network is secure and resilient.
Read more:
What is the future of Ethereum after the Merge?
The Merge changed the Ethereum network’s validation method from proof-of-work to proof-of-stake, resulting in a shift in how data is validated. Since the proof-of-stake validation does not include mining logic, the network’s power consumption was lowered. This way, there won’t be thousands of miners utilizing high-powered computers. Ethereum expects that network power usage will be reduced by 99.95%.
Furthermore, payments for validators have decreased because they use less energy, simplifying the validation process. Similarly, the returns decreased, and mining became obsolete. Contrary to popular belief, it will not reduce transaction costs because it will not modify the size of the blocks. Because there is rivalry among users for space in these blocks, some are willing to pay extra for a speedier procedure. This logic has a tendency to perpetuate.
The Merge also has almost no immediate impact on network users or developers, but it is a foundation for significant improvements in the medium and long future.
Conclusion
This shift awaited 4 years and finally took place in 2022, being one of the most notable events in the whole crypto history. The second largest cryptocurrency by volume and one of the most known in the sector went through the largest software update among all cryptocurrencies so far, representing the shift from Proof-of-Work (PoW) to Proof-of-Stake (PoS).
Highlights
The Ethereum Merge mainly represents the ETH ecosystem switch from Proof-of-Work (PoW) to Proof-of-Stake (PoS).
This new development enables Ethereum to keep sustainability while ensuring security and making a clear way for future scalability upgrades.
Main Video
Related Articles
Ethereum Merge
The Merge is known as one of the most relevant events in Ethereum history. It took years to be developed and validated until its final version was deployed. It also changed Ethereum's consensus mechanism, but its impact is far greater than it appears. Let's look at some other implications the Merge brought.
What is the Merge
The Ethereum Merge represents the ETH ecosystem switch from the energy-consuming consensus mechanism of Proof-of-Work (PoW) to the more energy-efficient mechanism of Proof-of-Stake (PoS). It stands for the merge of the Ethereum Mainnet with the Beacon Chain that had already been running PoS and replaced the energy-intensive mining with staking. This new development enabled Ethereum to keep sustainability while ensuring security and making a clear way for future scalability upgrades.
Read more:
PoW vs. PoS
Proof of Work (PoW) and Proof of Stake (PoS) are two different consensus algorithms used in blockchain networks to achieve distributed consensus.
PoW is a consensus algorithm that requires miners to solve complex mathematical puzzles to add new blocks to the blockchain. Miners are rewarded with a reward for their work. This requires a large amount of energy and computing power, which makes it expensive to run.
PoS is a consensus algorithm that rewards users for holding coins, rather than mining them. This reduces the cost of running the blockchain, as it does not require expensive computing power. It also reduces the risk of a 51% attack, as users must have a large stake in the network to control it.
Read more:
Beacon Chain, Sharding
A beacon chain is a type of blockchain used in the Ethereum network to coordinate and validate the network’s Proof of Stake (PoS) consensus algorithm. In this system, the network’s validators (known as “miners”) run special software called “beacons” to remain in sync with the Ethereum blockchain and validate new blocks. The beacon chain is responsible for securely keeping track of validator deposits, maintaining the Ethereum consensus rules, and randomly selecting the validators to create and confirm new blocks. The beacon chain is built on the Ethereum 2.0 platform and is designed to be more efficient and secure than the previous PoW consensus algorithm.
Read more:
Consensus Layer
The consensus layer is a layer of software that is used to help facilitate and secure distributed network operations. It is used to help come to an agreement between several computers, or nodes, that are connected to the same distributed network. It helps to ensure that each node follows the same set of rules and protocols, allowing them to process transactions and reach a consensus on the state of the network. It is an important part of any distributed network, as it helps to ensure that the network is secure and resilient.
Read more:
What is the future of Ethereum after the Merge?
The Merge changed the Ethereum network’s validation method from proof-of-work to proof-of-stake, resulting in a shift in how data is validated. Since the proof-of-stake validation does not include mining logic, the network’s power consumption was lowered. This way, there won’t be thousands of miners utilizing high-powered computers. Ethereum expects that network power usage will be reduced by 99.95%.
Furthermore, payments for validators have decreased because they use less energy, simplifying the validation process. Similarly, the returns decreased, and mining became obsolete. Contrary to popular belief, it will not reduce transaction costs because it will not modify the size of the blocks. Because there is rivalry among users for space in these blocks, some are willing to pay extra for a speedier procedure. This logic has a tendency to perpetuate.
The Merge also has almost no immediate impact on network users or developers, but it is a foundation for significant improvements in the medium and long future.
Conclusion
This shift awaited 4 years and finally took place in 2022, being one of the most notable events in the whole crypto history. The second largest cryptocurrency by volume and one of the most known in the sector went through the largest software update among all cryptocurrencies so far, representing the shift from Proof-of-Work (PoW) to Proof-of-Stake (PoS).
Highlights
The Ethereum Merge mainly represents the ETH ecosystem switch from Proof-of-Work (PoW) to Proof-of-Stake (PoS).
This new development enables Ethereum to keep sustainability while ensuring security and making a clear way for future scalability upgrades.
Main Video
Related Articles