All You Need to Know About The Ethereum Merge and Transition to Ethereum 2.0
07 Sep, 2022
The Merge has become a hot topic among investors, traders, and crypto enthusiasts worldwide.
Perhaps the most anticipated event in the entire cryptocurrency industry in this crypto-challenging 2022 will be the Merge of the Ethereum mainnet with the Beacon Chain proof-of-stake system. BullPerks, the fairest and most community-dedicated decentralized VC and multichain launchpad, wants its community to know more about it, including when Ethereum 2.0 will come to life, why it matters, possible circumstances, and so much more.
"The Merge" will mark the fag end of the Proof-of-Work Ethereum that everyone knows today and will give birth to Ethereum 2.0, the cutting-edge version that will be based on the Proof-of-Stake consensus algorithm.
BullPerks has prepared answers to frequently asked questions about what everyone needs to know about Ethereum 2.0. Ready? So let's get started.What is the Merge?
"The Merge" is a term used to describe Ethereum's transition from a proof-of-work consensus algorithm to one that uses proof-of-stake. In other words, it is merging Ethereum's existing execution layer with its new Proof-of-Stake consensus layer, named the Beacon Chain. The decision was made to take care of the energy-intensive mining process, as well as secure the network using Ether ($ETH). "The Merge" move is expected to provide greater security, resilience, and scalability to the entire Ethereum ($ETH) network.Why Does the Merge Matter?
The Beacon Chain is kind of the cornerstone of the entire Ethereum 2.0 architecture. It exists as a separate blockchain on the Ethereum network and runs in parallel without processing transactions on the main network. However, it has been reaching a consensus on its own. The Merge represents the point when two systems (the current one and the proof of stake (PoS-powered) Beacon Chain) merge. This will replace the PoW consensus algorithm with the proof-of-stake one for good. The Merge has several significant implications, including important points such as:- No history is expected to be lost;
- User funds will be completely safe;
- There will be no more Ethereum ($ETH) mining.
When Will the Merge Come to Life?
The Merge is currently scheduled for September 14, 2022. However, it is worth noting that Ethereum 2.0 was developed over several years of hard and fruitful work. Many Ethereum fans were confident that everything would happen in the future. However, various delays and complications can be expected. Etherscan monitors mining difficulty to determine the exact date and time to get a better estimate of when The Merge will come to life.What Might Happen Immediately After The Merge?
One of the primary and most important promises of The Merge is scaling, and Ethereum's founder with developers claimed that the network would be able to process about 100,000 transactions per second. However, it is only the first stage of five from the protocol's incoming development that means the transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) following the merge of Ethereum's current mainnet with the Beacon Chain. There are also four other steps, including:- The Surge, the phase that will bring sharding to the protocol, is a scaling solution that would break the network into separate partitions designed to spread the computational load.
- The Verge, the phase that involves upgrading Merkle proofs, is intended to optimize data storage for Ethereum ($ETH) nodes.
- The Purge concerns data storage for validators, which might reduce the hard drive space required, streamlining network congestion.
- The Splurge is intended to deliver some updates that are made to ensure the overall smoothness of how the network runs.