Ethereum Merge: The Revolution
Dec 22, 22 | Bakhtain Afzal
While crypto proposes a solution to generating a cash flow, assuring safety from frauds and thefts online, the year 2022 proved it all wrong. In recent months, the crypto market underwent drastic pressure, put on by cyber hackers that tried their best to breach the security protocols of blockchain technology. Despite the situation, a long-awaited Ethereum amalgamation was announced publicly and became operational in September.
This Ethereum upgrade or amalgamation is known as "the Merge," commonly known as Ethereum Merge now. Having said that, its initial announcement was made back in 2014. And that raised quite a few questions about whether an energy-efficient, alternative consensus strategy would ever get passed.
Meanwhile, for crypto, sustainability remains of the highest significance, whereas crypto mining stands in complete opposition to that concept. And that remains to be a topic of concern for Web3 climate innovators and climate change advocates.
In conclusion, ETH Merge proposed a solution to that as well. To explain Ethereum Merge in-depth, we curated this article for you to find out more about ETH Merge news, Ethereum Merge, Ethereum Merge mining etc.
Proof of Work and Ethereum
Initially, the Ethereum network began using a consensus mechanism involving Proof-of-Work. This enabled the Ethereum network's node to agree on the state of information stored on the Ethereum blockchain. By all nodes of the Ethereum network agreeing on the data stored, it was easier to stay safe from economic attacks and frauds within the network.
But that's actually less sustainable and scalable, and that's precisely what the new Ethereum Merge software update works on. the Merge has now moved the Ethereum network on a Proof-of-Stake consensus mechanism from PoW.
Proof of Stake and Ethereum
To introduce Proof of Stake, it's a consensus mechanism that's used by blockchain to achieve the status of a distributed consensus. This is in contrast to Proof-of-Work, which refers to mining procedures.
Whereas, Proof-of-Stake relates to staking. After the recent Crypto Ethereum Merge, Ethereum now uses a proof of stake mechanism where the validators can stake capital as ETH into a smart contract on Ethereum. If there's an invalid action performed by the validator, the staked ETH gets destroyed.
Therefore, the validator is responsible for ensuring that newly created blocks are validly propagated throughout the network while propagating new blocks time-to-time. That's just an overview of the Proof-of-Stake consensus mechanism and how Ethereum benefits.
Benefits of Proof-Of-Stake And Ethereum
Let's get into the benefits the Proof-of-Stake system brings with itself:
- It presents lower entry barriers with reduced hardware requirements.
- Economic penalties make 51% of attacks' chances lower as it gets more costly for the attacker when compared to Proof-of-Work.
- It presents a lower risk of centralization, as, Proof-of-Stake leads towards more nodes which secures the network.
- It requires lower energy.
- It's more efficient and requires less energy compared to Proof-of-Work computation.
What is Ethereum Merge?
Moving on to the prospect of Ethereum Merge, also known as ETH Merge, was to join the original execution layer of Ethereum with a newly created Proof-of-Stake consensus layer, the Beacon Chain.
Through the ETH Merge, undoubtedly, sustainability got a higher emphasis.
Not only this, due to the Merge, the need for energy-intensive mining was eliminated, allowing the network to get secured by using the already staked ETH. To sum that up, Merge changes Ethereum from being Proof-of-Work to Proof-of-Stake, making it more sustainable, simpler, and scalable.
Will Ethereum Go Up After Merge?
Ethereum, which is now the second largest digital currency, is through a process of adaptation to diverse approaches that will likely alter the way it functions. Additionally, the Ethereum Merge is the most important development for cryptocurrencies this year.
It was predicted that the price of Ethereum would increase after the combination of the two chains. This was obviously due to the fact that the ETH supply after Merge would rise, causing more individuals to select for it.
Furthermore, a number of additional factors contributed to this possible rise in ETH supply after the Merge that was available following the union. However, that forecast on the increase in the ETH supply after Merge following the merging was incorrect. In contrast, ETH supply after Merge dropped by 7% since the recent Ethereum Merge software upgrade. The primary causes for the failure of Ether, which in fact, occurred for a variety of reasons, are as follows:
- Due to the spike in interest rates
- Increased regulatory pressure in the cryptocurrency market
Has Ethereum Merge Happened?
Yes, the Ethereum Merge has happened. The execution for the Merge was on 15th September 2022. The Ethereum Merge news came in 2014. Still, it's been an ongoing process that kept crypto enthusiasts excited for a great time.
How to Stake ETH After Merge?
You have a number of alternatives available for staking on ETH, and based on your preferences, you may select the option that is the most suitable to your preferences. The following is a list of the alternative options for staking on ETH, as well as a quick description of staking on ETH using each of these options:
Solo Home Staking
This is the gold standard of staking on Ethereum. This comes with total participating rewards, doesn't require you to trust anyone with your funds, and improves your network's decentralization.
For solo staking, you should have a minimum of 32 ETH and a computer with a reliable internet connection. Before, a bit of technical know-how was essential, but, nowadays, various easy-to-use tools help you with the process and simplify it for you.
Staking as a Service
If you're uncomfortable with dealing with hardware but want to bring your 32 ETH into use, Staking as a Service might be your best option. It does all the hard work, taking the stress off your shoulders, and in return, you also get rewards.
This option enables you to create a set of validator credentials, upload your signing keys and deposit your 32 ETH. To put that together, this allows service validation on your behalf. Staking as a Service requires a level of trust in the provider. In addition to that, to limit counterpart risk, the withdrawal keys are kept in your possession.
Another option is pooled staking, also known as liquid staking. This involves the ERC-20 liquidity token, which represents stake ETH. Other than that, it allows the easiest staking process, resembling a token swap. You can also hold custody of your assets using your Ethereum wallet.
On the other hand, pooled staking isn't native to the Ethereum Network, i.e., it comes with a set of risks. While this option is easy, it isn't the safest to opt for, and if you come with a great risk tolerance, then this is the best option for you.
Various centralized exchanges provide staking services if you don't anticipate holding ETH in your wallet. This requires minimum effort for you to earn a yield on ETH holdings.
In centralized exchanges, providers come with large pools of ETH to run a larger number of validators. But, this can be risky for the network as it results in a larger centralized point of failure and target. And this makes the network easier to attack and that's also the reason why ETH Merge was introduced.
What to Mine After ETH Merge?
Ethereum Merge mining is a great concern for miners that used to mine crypto on a proof of work consensus mechanism of Ethereum. But, after the Merge, Ethereum Merge mining isn't possible. The only option left for Ethereum miners is to switch to mining Ravencoin.
Ravencoin is the best alternative as a response to Ethereum Merge mining.
Ravencoin uses a proof-of-work consensus method blockchain with a maximum quantity of 21 billion coins, much like Bitcoin did before. Like Ethereum, Ravencoin's RVN tokens can be used for various things, including decentralized applications and non-fungible tokens (NFTs). NFTs are tokens with a unique cryptographic identity linked to digital and physical content and serve as evidence of membership or ownership.
Although, Raven coin isn't as popular as Ethereum or not even stands equal to the comparison of Ethereum. It still opens up an option for mining using graphics processing units (GPUS).
Is There a Rise in ETH Gas Fees After the Merge?
After reading about Ethereum Merge mining, let’s move towards ETH gas fees after Merge.
Yes, there's a definite rise in ETH gas fees after the Merge. While Ethereum Merge made an approach for lower energy consumption and making the Ethereum network more environmentally friendly, it also led to a rise in ETH gas fees after the Merge.
ETH gas fees after Merge were raised to 31.3%, right a month after the Merge was announced. To quote the initial ETH gas fees, it was 17.1 gwei, and within a month, in October ETH gas fees after Merge was 22.5 gwei.
What Are the Changes in ETH TPS After Merge?
After you’ve read about ETH gas fees after Merge, let’s move forward with ETH TPS.
TPS (Transactions per Second) is a measurement unit that indicates blockchain's scalability and speed. Considering the changes in ETH TPS after Merge, Ethereum handles about 10 TPS (transactions per second). And, to improve ETH TPS after Merge in an attempt to achieve the scalable goals, it needs an improvement of 100,00x.
What Was Ethereum Merge Clock and Ethereum Merge Timer?
It’s time to explore Ethereum Merge clock, while crypto enthusiasts were all braced up for the long-awaited Ethereum Merge update, Google showed its contribution too. The leading search engine Google introduced a clock down feature, known as the Ethereum Merge clock or the Ethereum Merge timer.
This Ethereum Merge clock and Ethereum Merge timer were simply for a clock down. It intensified excitement among the crypto traders who were desperately waiting for it. As soon as the Ethereum Merge was introduced, the Ethereum Merge timer signaled the time for the software update to go public and everyone couldn't wait for that time.
What Is Ethereum PoW Prediction?
Before answering the question of Ethereum PoW prediction, we need to understand and gain an overview of what Ethereum PoW is. Before the Ethereum Merge, Ethereum used smart contracts and relied on a Proof of Work (PoW) consensus mechanism. This meant immense computer power was required since miners had to solve complex equations to add blocks in the blockchain.
Now that you know about Ethereum PoW, let's read about Ethereum PoW prediction.
This question mainly refers to the price of Ethereum PoW. The first Ethereum PoW prediction estimated that ETHW could drop to almost $4 by the first week of December before falling to nearly $1 by the end of December. Similarly, there were different predictions, all of which put forward an Ethereum PoW prediction according to their analysis. And that significantly differed from one other.
Hence, there isn't a specific ETH PoW prediction that you can rely on since cryptocurrencies are highly volatile to be relied upon. Plus, algorithm-based forecasters and analysts can also have their ETH PoW prediction wrong.
Is Ethereum Merge Successful?
Although ETH TPS after Merge is still low, the Ethereum Merge was a success, that is for sure. The Beacon chain shows that Ethereum is capable of maintaining its Proof-of-Stake consensus algorithm. And during the second week of September 2022, the Proof of Work mechanism was switched out for the Beacon chain so that it could be incorporated into the Ethereum chain.
We have been updated to Ethereum 2.0 now after the merging has been completed and that too without any problems. As a result, the Merge was a ground-breaking innovation, and it is currently centered on providing environmentally responsible solutions - that have been needed for a very long time.
What Will Be the Next Upgrade After the Merge?
The Ethereum Merge upgrade gets its deserved hype, but a lot more needs to be upgraded. And for that, a layer two scaling solution is to be proposed, known as The Shanghai Upgrade.
Shanghai upgrade is the latest ETH Merge news and it plans to follow the Merge and allow stakers to withdraw anytime through its better capable solutions.
Initially, the plan was to address the scalability issues, and the Merge successfully addressed that. So, now the focus is on compressing data from rollup contracts and distributing the burden within a network. Which as a matter of fact, the Shanghai upgrade promises to fulfill after the Merge and that’s the most recent update after ETH Merge news.
Has Ethereum Merge Happened?
Yes, the Crypto Ethereum Merge happened on 15th September 2022.
Will Ethereum Go Back Up After the Merge?
According to crypto analysts, after browsing other crypto Ethereum Merge news predicted that the price of ETH could definitely go back up after the Merge.
What Is the Latest Ethereum Merge News?
After Ethereum Merge, the latest ETH Merge news is an introduction of the Sharding Upgrade.
This Ethereum Merge news describes that the surge, the next update phase, will divide the network into smaller pieces.
- The network's website states that you need to do nothing if you have ETH prior to the integration.
- Ethereum cautions against falling for con artists that tell you that you must upgrade or switch to a new cryptocurrency, such as "ETH2." There is no such token.
- Mining awards, which are more significant than staking rewards, are no longer given out. The rate at which new ETH tokens reach the market has decreased by around 90%.
- ETH gas fees after Crypto Ethereum Merge, congestion, and high transaction prices have been Ethereum's biggest problems. Both of these problems were instantly resolved by the Merger.
Reading about the crypto Ethereum Merge, ETH Merge news, ETH TPS after Merge and ETH supply after Merge, you get an idea about the revolutionary concept of merging the Beacon chain into the Ethereum chain in September 2022. But that's not it; despite Ethereum Merge's success, there's still much more to do.
Conclusively, these are attempts for safer, scalable, and more accessible solutions within a blockchain network. The transfer to PoS from PoW represents that. After reading about enticing updates in the crypto world, Crypto Ethereum Merge and the rise in people investing in cryptocurrencies, blockchain development comes with significant scope in the future— and that’s exactly why different top software development companies worldwide are providing blockchain development services.
However, if you're interested in availing bespoke blockchain development solutions, head towards Distinguished, a B2B service provider, and avail of blockchain development services from a list of top software development companies.
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