During the last weeks, this news has been everywhere, with countless articles talking about when the merge will happen, if this is good for the value of Ethereum, and even the contribution to the environment, but there is something that all these articles have in common, and it's complexity.
Because let's face it, nobody understands what the hell it means that the ETH developers set the date of the merge for TTD 58750000000000000000000. But don't worry; you've just come to the right place to answer all your questions about this milestone for the Ethereum community.
What is Fusion?
Everything started on December 1, 2020, when “Beacon Chain” was officially created, which has since been running in a trial state parallel to the main Ethereum network.
With the merge, Beacon Chain is planned to serve as the method of block production, replacing mining, or Proof of Work (PoW), with Proof of Stake (PoS). This major upgrade marks the beginning of a more sustainable, environmentally friendly, and secure Ethereum.
Differences between PoW and PoS
Proof of Work or “Proof of Work” is the validation method currently used by the Ethereum network. The blockchain is secured by participants called miners, who use super powerful hardware to validate new blocks and earn rewards.
On the other hand, the Proof of Participation or “Proof of Stake” will be the new method to validate and generate new blocks in the ETH network. The miners are replaced by validators, which do not need any type of hardware; they only need to have ether. The more coins you have, the more chances you have to receive a reward.
As many know, mining is a fairly complex process, and more powerful hardware is needed to solve operations. If we increase power, we must increase energy consumption, which translates into pollution.
Energy consumption of the Ethereum network
Currently, the Ethereum network accounts for an annual energy consumption equivalent to Finland and leaves a carbon footprint in the atmosphere similar to that of Switzerland.
With the fusion, energy consumption is reduced by 99.95%, and validators only need a device with internet access to participate in the process.
What should I do during the merge?
The network upgrade is designed to be a smooth and seamless switch. Ethereum's users need to do absolutely nothing. If you are worried about your funds, you should be calm; during the process, all the money is still protected, and it is unlikely that anything wrong will happen.
Many people will try to take advantage of the event to create misinformation and user confusion. You must remain alert to possible scams.
The Ethereum blog has warned about several scam attempts offering users to upgrade to “ETH2”. After the merge, Ethereum's history will remain unchanged, so the cryptocurrency will not change its name or anything like that.
Myths about the merge
1. Faster transactions.
Although the Beacon Chain reduces the average transaction time, it is barely 10%, so it is practically insignificant, and users may never notice the difference.
2. The merge will cause some downtime on the blockchain.
The developers of Ethereum have done quite a lot of work to ensure that there is no interruption during the process, so no one needs to worry about that.
3. Reduction in gas rates.
The merge is a change in the validation mechanism of the blocks, and it has nothing to do with an expansion in the network's capacity, so no change in gas rates is expected.
When is the merge?
Since we know everything about The Merge, we only need to know the most important thing, the date. Everything is set for September 15 or 16, 2022.
The exact moment is difficult to calculate now since we must wait for the day to approach. That is why we want to invite you to our community on Telegram, where you can be aware of the news of the crypto ecosystem and chat with other fans of cryptocurrencies. In addition, you will have information about El Dorado before anyone else, such as offers or events.
Don't wait any longer, and start your way to El Dorado!