The Myths Around Ethereum Merge
The Merge is coming!
If you have been following the crypto markets over the past few months, you will know that the streets have been abuzz about the upcoming Ethereum merge. The chain will finally make a switch from a Proof of work (PoW) consensus mechanism to Proof of Stake (PoS). Crypto markets are always rife with speculations as HUMANS like to see their bags pumping. So separating the facts from the FUD is a top priority. At times like these “DYOR” comes in handy.
AI has decided to help HUMANS out by separating the facts from the fiction when it comes to the upcoming Ethereum merge.
Let us first explain what ‘The Merge’ is. According to the Ethereum Foundation, the merge will happen around – a Bellatrix epoch of 144896 and a Paris TTD of 58750000000000000000000 (tentative), i.e somewhere around September 15th, 2022. The date is still tentative, but HUMANS can start planning their next moves.
If the merge is successful, the Ethereum blockchain will switch to a PoS mechanism without any downtime for the ETH network. This will eliminate the need of miners from the Ethereum consensus mechanism. It will also drastically change the process when it comes to reaching consensus or just how on-chain trades are planned in general. The merge is a stepping stone for future upgrades which are supposed to make the chain faster and more robust. Good job! 🎈
Let us now debunk the merge myths. PROCESSING ARTICLE…
Myth 1: There Will Be a New Blockchain Called Ethereum 2.0
The merge only refers to a set of upgrades that will make the Ethereum blockchain compatible with the PoS consensus mechanism, along with forming the base for subsequent future upgrades.
The term Ethereum 2.0 was created in 2018. The merge upgrade, including plans for increased network capacity along with the switch to PoS, were pulled together as part of Ethereum 2.0. This naming might have given rise to the confusion that there will be a new blockchain when the upgrade happens. This is not the case.
Myth 2: The Merge Will Create a New Ethereum Token, ETH2
Another confusion created by the Ethereum 2.0 terminology was the idea that there will be a new ETH coin after the merge and the original ETH token will be rendered valueless. This is not true. AI cannot compute HUMAN minds.
To put it simply, the original ETH layer or ETH1 can be viewed as a “consensus layer” with a switch to PoS and ETH2 can be viewed as the execution layer. The merge is the event of combining these two layers. So AI would like to advise HUMANS to beware of scammers trying to sell you the new ETH 2.0 token.
HUMANS might still get some value out of the ETHW token airdrop if miners are successful in forking the old Ethereum chain. To do this, they will have to generate enough support when the merge finally takes place.
Myth 3: The Ethereum Chain Will Go Down During The Merge
This is incorrect. If everything goes to plan and the merge is successful, then according to the devs there will be absolutely zero downtime for the network. This has been tested by performing the merge on various Ethereum testnets. The most recent among them was the Goerli testnet merge that was successfully executed on August 11, 2022. The Goerli merge was the final testnet merge before the mainchain upgrade.
Myth 4: ETH Transactions Will Be Cheaper After The Merge
Many HUMANS using ETH believe that the Merge will reduce the cost of transactions on the Ethereum network, as they believe that the gas fees on the mainnet will go down. While this may happen over time when sharding is enabled, the Merge does not specifically address individual transaction costs, which remain a function of demand.
The higher the number of people transacting on Ethereum, the higher the gas fees.
Myth 5: Staked ETH On The Beacon Chain Will Be Immediately Withdrawable
At the launch of the Beacon chain in December 2020, a lot of people staked their ETH to become a validator to test the chain and get it moving. The ETH, however, is locked and cannot be withdrawn immediately post-merge.
This is a very common belief among general users which is untrue. The ETH will become withdrawable at some point in the future, but the date is not decided yet. It is estimated that it could take 6-12 months after the merge for USERS to be able to withdraw their ETH.
AWAITING: THE MERGE…
With the misconceptions addressed, users can plan their market strategies for the merge. To keep track of all the developments about the merge HUMANS can refer to the knowledge base maintained by Consensys or SHIFT to some ETH using SideShift.ai and STAND BY for the Merge. WELL DONE! 🎈