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[Delio] Goodbye Miners! Post-Merge industry — New Future of the Blockchain and Web3

It happened! The long-awaited Merge of Ethereum, the most popular altcoin and second-largest cryptocurrency by market cap, was finally accomplished on September 15.

As the world has been moving toward innovations while being concerned about the environmental, social, and corporate governance (ESG) issues, the crypto industry requires adapting ‘new rules to stay on the boat.

In this post, we discuss what is Ethereum Merge, Proof-of-stake, Ethereum after the Merge, the top 3 misconceptions, and how it can save the planet.

What is Ethereum Merge?

Goodbye Miners!

Imagine the intergalactic flight and changing the spaceship engine at the same time. The same faced the developers who worked on the Ethereum Merge.

The Merge is designed to handle the resource-intensive mining operation while simultaneously employing staked ETH to secure the network. The change is anticipated to provide Ethereum’s network with additional security, viability, and scalability by integrating a new method of verifying blockchain transactions — Proof-of-stake.

Ethereum Merge

Crypto scientifically speaking, “The Merge” represents the joining of the existing execution layer of Ethereum (the mainnet we used before the Merge) with its new proof-of-stake consensus layer, so-called the Beacon Chain.”

Hello Stakers!

Proof-of-stake:

Cryptocurrency transactions are verified via a form of consensus process called proof-of-stake or PoS. With this approach, cryptocurrency owners may stake their coins, giving them the authority to review and add new blocks of transactions to the blockchain.

Proof-of-work, the first cryptocurrency consensus mechanism created, is a substitute for this process. Proof-of-stake has grown in popularity as concern over how crypto mining impacts the environment has increased since it is significantly more energy-friendly.

The Ethereum Merge happened. So what?

Vitalik Buterin, a founder of the Ethereum platform, stated that the network would be able to handle 100,000 transactions per second as one of the promises of Ethereum 2, an updated version of Ethereum. The Merge, however, is only the first of the protocol’s upcoming five stages, according to Vitalik Buterin.

The 5 stages of the Ethereum protocol shift:

The Merge:

The change from Proof-of-Work to Proof-of-Stake that is being addressed here happened when Ethereum’s current mainnet and the Beacon Chain merged.

The Surge:

This stage will introduce sharding to the protocol. It is a scaling approach that would divide the network into several sections known as “shards,” to distribute the computational burden on the mainnet.

The Verge:

The introduction of the infamous “verkle trees” is referred to as this era. Improving data storage for Ethereum nodes entails an improvement to Merkle proofs.

The Purge:

Similar to that, this improvement also deals with validator data storage and will lessen the amount of hard drive space needed for the validators, reducing network congestion.

The Splurge:

The goal of this last upgrade in the pipeline is to deploy several minor upgrades to make sure the network functions as smoothly as possible overall.

Top 3 misconceptions about the Ethereum Merge

  1. Gas fees will be reduced after the Merge. — False

The Merge won’t cut gas prices since it won’t increase network capacity and instead alter the consensus algorithm. However, scaling solutions, most of which are aimed at layer 2s, are now being developed that are intended to achieve low gas fees.

  1. Ethereum transaction speed will be significantly faster. — False

You won’t notice the difference, even though transaction speeds — specifically, block inclusion and finalization speeds — will slightly alter. Users’ experiences on Ethereum will essentially be the same when as the information from Etherscan.

  1. There will be a new ETH2 coin. — False

Someone is trying to scam you!

Although Ethereum 2.0 or Eth2 was first used to refer to post-Merge Ethereum, this labeling has subsequently been phased out in favor of just calling it “Ethereum.“

However, the Merge did have an impact on the environmental issue by lowering the world’s energy consumption by 0.2%, according to Vitalik Buterin.

The bottom line

As one of the biggest protocols will undergo a significant transformation, The Merge is unquestionably one of the most important events in the history of cryptocurrencies.

Rollups hint at the likely direction of Ethereum development, where community solutions, as opposed to changes to the chain’s core code, will be key to enhancing the chain’s functionality.

As for Delio, we aim to implement the major services following the customers’ needs.

Delio to Support Ethereum 2.0 Hard Fork: https://medium.com/p/69fa97fa6fa8

Delio Official Links:

Delio Official Website: https://delio.global

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Delio

Delio

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Delio Digital Asset Finance Group, established in 2018, is №1 fintech company based in Seoul and acquired digital asset licenses from Korean and US governments.