The Ethereum Merge: What You Need to Know
The much-anticipated merge took place Sep 15, 2022. The highly-anticipated upgrade raised the excitement of crypto enthusiasts and Ethereum owners alike since it is a major upgrade in the crypto world. Moreover, it changed the network and addressed a few Ethereum network issues. As a result, many crypto platforms actively prepared for the upgrade and its consequential changes to ETH.
This post will discuss the merge, what it means for stakers, and state some of the misconceptions about the merge.
About the Ethereum Merge
The Ethereum merge is a change to the Ethereum network where the mainnet (PoW chain) and the Beacon Chain (PoS chain) integrate. This means that the network moved from a proof-of-work (PoW) consensus algorithm to a proof-of-stake (PoS) one. This was a significant shift for the network. In addition, it will address some issues that have arisen with PoW, such as high energy consumption and centralization. In simple terms, it is ‘Goodbye, miners. Hello, stakers!’
How Is the POS Consensus Algorithm Different From POW?
The PoS consensus algorithm is different from PoW in several ways. For one, it is more energy efficient since it does not require miners to use expensive hardware to solve complex puzzles. Secondly, it is designed to be more secure and less prone to 51% attacks. Finally, it allows for a more decentralized network, as there is no need for large mining pools to control the network.
And After the Merge?
The merge was a success! But we need to know what this means for the Ethereum owners since there are many questions.
The Merge and Staking
According to reports, staked ETH will stay locked on the network till the next — Shanghai — Upgrade, which will happen 6–12 after the merge. This means stakers will not be able to withdraw locked ETH after the merge till 2023. However, the exact date has not been disclosed, so you must wait.
What About the Hard Fork?
It is not the first time a hard fork has occurred on the network. The most famous example is the Ethereum Classic (ETC). With the merge came several forks, the most prominent being the EthereumPoW (ETHW). As its name suggests, it uses the PoW mechanism and is meant to cater to miners who still want to mine. It is a separate blockchain from the main Ethereum network.
The good news is that you can get free tokens you can exchange for other tokens. ETHW is 1:1 to the ETH. Meaning if you have 0.25 ETH, you get 0.25 ETHW. Mind you. The ETHW token does not have the same value as ETH. For example, 0.25 ETH ~ $320, while 0.25 ETHW ~ $1.90.
If you hold ETH before the merge, you are eligible for the airdrop, which you can claim on Guarda.
What Are Some of the Misconceptions Surrounding the Merge?
No More High Fees After the Merge
False! This upgrade doesn’t focus on this issue at all. The fees will remain as they were before the merge.
Ethereum Transaction Speeds Increase After the Merge
There will be barely any change to the network’s speed due to the merge. The TPS of Ethereum is usually around 13 or 14, but blocks will be issued at 12 TPS after the merge. This is not a noticeable change.
The Price of Ethereum Will Increase
This is very hard to say. The upgrade does not guarantee a price increase. Since the merge, the price of ETH has stayed within the range of $1200–1300, so there is no difference.
Conclusion
The long-awaited merge finally happened. The network finally embraced the PoS, a less energy-intensive option than the PoW mechanism. This is a big step towards an eco-friendly environment. Also, the issuance of ETH has decreased by 90%, meaning the number of Ether staked daily will reduce from 13,000 to 1,600.
With regards to the forked token, there is very little information about it. Therefore, exchanging ETHW for other cryptocurrencies is better.
