One of the popular blockchains, Ethereum, is going to get its revolutionary Merge in September this year. Ethereum’s merge will be caused by several changes and consequences in the blockchain. This merge is going to be the largest upgrade in that crypto platform. It already took the headlines for its upcoming integration. This is one of the anticipated upgrades in Ethereum over the past years.
The Mechanism Of The Merge :
The merge will bring the blockchain from proof-of-work (PoW) to a proof-of-stake (PoS) mechanism. It is a less complicated mechanism in the blockchain. Proof-of-stake includes lower energy intensity and a potential roadmap to a more measurable future by sharding. It will make the Ethereum deflationary through its PoS consensus mechanism. This upgrade is one of the five other upcoming updates on that platform. It is expected to increase transaction speed by reducing block times.
‘Surge’ is another upcoming program of Ethereum. The upcoming Merge is the path of following ‘Surge’. It will allow 100,000 transactions per second after its implementation. The Merge will reduce the block time by 1 second. Which will be 12 seconds from 13 seconds. It will reduce the block timings along with transferring fees. That is expected to increase the transaction speed more than before. The PoS will deplete the overall issue of Ethereum by 4.2% every year. It will turn Ethereum into a ‘yield-bearing asset’ along with cash flow. This is considered a new form of generating revenue.
This Merge is going to be vast and notable as a large number of protocols and decentralized applications are based on Ethereum. The merge will make the blockchain more efficient, scalable, and sustainable. It was expected to complete the Merge in July this year. But the team is set to launch it on September 19.
Bitcoin is still using the PoW mechanism. It is a complex process. Also, it is quite risky for transactions and it raises security issues. Though this traditional mechanism is effective, it is not as efficient as PoS. Whereas, the PoS mechanism is less energy consuming and needs less equipment. This PoS is easier for staking ETH. The staking members need to have 32 ETH. They will be rewarded for contributing to the platform. Their holding or staked ETH can be contributed to the platform. It helps the overall platform to beat the issues. It is going to bring a participatory approach to the entire platform.
The upcoming ecosystem will change the number of stake-Ethereum. The stake-Ethereum will increase by an upward percentage. It is expected to reach 13.4 million through the implementation of the mechanism. On the other hand, miners will shift to ETC (Ethereum Classic-native token) from ETH. It will increase the ETC price by 4 times and strengthen the network.
Also, the annual deflation rate before the merger would be or is anticipated 2.39%. Additionally, the total rewards will be constantly at 583,100 ETH.
After the merger, users are going to get two separate networks. Then it will bring exchanges, oracle suppliers, and also, stablecoin suppliers. After that, they have to decide which one they would go for or pay attention to. Both networks will have 100 billion USDT each. It was suggested to stop respecting one of them (Tether).