Ethereum completes the move to cut CO2 output by more than 99%. The long-awaited Merge which is the transition of Ethereum consensus from proof-of-work (PoW) to proof-of-stake (PoS) model is completed today September 15, at 2.00 PM IST.
And the world celebrates The Merge:
From rallies to sweets, Twitteratis celebrated the merge in creative ways. Major industry influencers were live celebrating it in what is called, a ‘Merge party’ and joined by thousands of viewers online.
Some had some uniquely interesting ways too:
Even some of us crypto influencers and entrepreneurs in India joined a Youtube live with Bitinnings, a crypto education platform by Kashif Raza. We celebrated live in another episode of their famous show Web3KiDuniya.
The Merge Parties were ecstatic too.
In the Metaverse
They had a conference room booked in Singapore.
So, what changes with the Merge?
After the Merge, all applications running on top of Ethereum should run the same way as before. The transactions history and state are both fully maintained. Any LPs or loans on any of the applications will remain unaffected.
A lot of other things will change for Ethereum post-merge but it won’t affect the network or users right now
- The time to mine a block is divided into fixed slots of 12 seconds. Slots may miss a block so on average time per block may be higher. It is around 13 seconds for PoW. After Surge’s sharding implementation, the throughput of the network may increase dramatically.
- Harder to attack the network due to economic security.
- GPUs may become cheaper, due to no longer being needed for mining Ethereum. There is a chance for ETC or other cryptocurrencies using ETHASH mining algorithm to take dominance in the PoW segment.
- Decrease of supply in Ethereum over time.
Certain things do not change for Ethereum after the Merge:
- No Reduction in Gas Fees.
- No major impact on block time or throughput.
These are expected to improve with further upgrades to the network.
Ethereum Merge is the first of five major upgrades on Ethereum that are estimated to be deployed by 2026. These upgrades will include technological upgrades like Sharding and get Ethereum to high throughput and low fees, possibly competing with all side chains and L2 that are faster than Ethereum today.
- The Merge
- The Surge
- The Verge
- The Purge
- The Splurge
But what is in it for me?
If you are holding ETH at Merge, you may receive the exact amount of ETH on the ETHW chain when it goes live. Some miners have decided to continue building Ethereum PoW as it was before the merge.
Whether the price of ETH will pump or dump after this major event is something that we will discover in days to come. However, what we do know is the transition to PoS will make Ethereum energy efficient and sets it up for higher scalability with features like sharding later.