What is Ethereum Merge and What Happens After The Merge?
A lot of anticipations have been built around the Ethereum Merge since it was first announced a few years ago and as it stands is likely the most anticipated event in the cryptocurrency world in 2022.
Ethereum’s mainnet is set to merge with the Beacon Chain’s proof-of-stake system in what is popularly referred to as “The Merge.”
The Merge will ultimately mark the end of the existing proof-of-work protocol Ethereum currently operates and usher in Ethereum 2.0, a version that will be based on a proof-of-stake consensus algorithm.
Although it won’t lead to reduced transaction fees for ETH users, Ethereum will be delivering big on security, scalability, and more sustainability by reducing their energy usage by 99.95%.
So in this article, I will be providing detailed and fact-based answers to some of the questions that numerous ETH holders have been asking over and over again about the Merge. Keep Reading!
Key Takeaways
• The ETH 2.0 upgrade is not technically a replacement for ETH, but more of an upgrade to make it more faster and secure. So it’s best described as a Merger.
• In migrating to the more sustainable, scalable, and eco-friendly Ethereum, as an ETH holder, you are not required to perform any operation (asides from stakers) to avoid scammers getting hold of your assets.
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What is the Ethereum Merge?
When we talk about the Merge, it has to do with Ethereum’s long-awaited migration from the “Proof-of-Work” consensus mechanism (which it currently operates) to a “Proof-of-Stake” system.
The Merge is a two-way process that is referred to as the Bellatrix & Paris upgrades. The Merge was flagged off with Bellatrix on the 6th of September, 2022 at 11:34:47am UTC.
Bellatrix will be followed up by Paris, which will be the execution layer that will transition the proof-of-work to the proof-of-stake of Ethereum.
Paris will be triggered by a specific Total Difficulty threshold, known as the Terminal Total Difficulty (TTD), which makes the exact date of Paris TBD since it depends heavily on the proof-of-work hash rate.
TTD has to do with the total difficulty threshold required for the final block mined in Ethereum. In other words, TTD represents the fixed number of hashes that are left to mine until Proof-of-Stake officially takes over.
The Main Goals of the Merge Includes
- Increased security: The Merge will usher in a more sustainable cryptoeconomic model using an upgraded version of the existing Ethereum blockchain, making it more secure and more difficult to attack the network.
- Enhanced scalability: It will enable Ethereum to scale up its transaction processes thereby making the network faster with the capability to handle numerous transactions within a short timeframe.
- Increase sustainability: With the Merge, Ethereum’s energy usage would be reduced by 99.95%.
What happens to ETH when ETH2 comes out?
You must be always informed to be high on alert for scams, especially those that have to do with the Ethereum Merge.
It is highly recommended that you don’t attempt to send your ETH to anyone under the guise of assisting you in “upgrading to ETH2” because there is no ETH 2 token.
So ensure to keep your assets safe and secure wherever they are. You are not required to take any action.
After the merge phrases are out, you will find your staked ETH (now ETH 2.0) balance under your Ethereum wallet on whatever platforms you have them. Your staked ETH will then be listed separately from any unstaked ETH or dapp wallet ETH balance you might be holding.
Staked ETH (ETH2) balances won’t be unlocked at the time of the Merge and won’t be available either for trading or transfer to other Eth users until the Ethereum protocol upgrade is completed. The upgrade is anticipated to be completed by early 2023.
Will ETH 2 replace ETH?
Well, to answer this question you must know that the Ethereum 2.0 upgrade is not like a replacement for the existing ETH. That’s why it’s best described as a merger because the focus is not to build a new network but rather to build more on the existing network to make it faster, scalable, and sustainable.
When you go and check the FAQ section of Ethereum’s official website, it is clearly stated that “not accurate to think of Eth2 as a separate blockchain.” So refrain from doing so as it will cause you to start believing in various misconceptions that people had about the merger.
Is Ethereum and Ethereum 2.0 the same?
Let’s do a little bit of analysis to simplify the whole concept. Have you ever experienced something like opening your favorite mobile app and the next thing that pops up is a notification to update the app before you can use it?
All you have to do is to click on update or confirm and wait patiently for it to complete. After the update is completed, you discover that this new version has a different and upgraded interface or several new features to aid functionality and more productivity.
Regardless of the update, it’s still the same old app just with upgraded functions.
Just think of ETH and ETH 2.0 in the same way. Contrary to popular misconceptions after hearing how the whole merging will unfold, ETH 2.0 is not a new blockchain or cryptocurrency.
So both ETH and ETH 2.0 are the same with the difference of ETH 2.0 being the upgraded version of ETH in the area of scalability, security, and also sustainability.
What happens to your ETH after the Merge?
There have been a lot of fears among ETH users across different platforms due to various misconceptions such as the fear of their ETH going missing or getting lost during the merging process. But fortunately, the move is just meant to mark the replacement of Ethereum’s Mainnet with the Beacon Chain and several sharded chains by tomorrow.
To put it in simpler terms, it’s like having a racing car and now the racing car company says they developed a more fuel-efficient engine to replace the old engine mid-race. Every other thing about the car remains just the same with only the engines swapped. So the only change would just be in how fast and efficient the racing car now runs.
Silo, if you have your ETH on various crypto exchanges that support Ethereum’s transition to PoS, then you don’t have to fear or worry unnecessarily about what happens to your ETH after the whole merging process because all the ETH you initially have will still appear in your wallet just as it was. In addition, all your ETH will become accessible immediately after the merge is completed.
What Date is Ethereum merge?
The date for the long-awaited merge of the world’s second most valuable cryptocurrency is scheduled to be completed between today and September 15th.
You can check the Ethereum official website to keep informed about the latest updates regarding the merge.
Final Thoughts
Even as the Merge is nearer than we could ever imagined a few weeks ago, you don’t have to fear or panic and as a result give out your ETH under the guise of “upgrading to ETH 2.0”.
A lot of these scammers are out there with the intent of scamming a lot of ETH holders of their ETH this period. So don’t do anything, just leave your ETH wherever it is, because there is no ETH 2.0 token or rather a newly launched token using another blockchain network.
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