What are the risks of the Ethereum Merge?
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Loading... - Petra Novak
- 04 Nov 2022
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What is the Ethereum Merge?
The Merge integrated Ethereum’s original execution layer with its new proof-of-stake consensus layer, officially transitioning the network’s consensus mechanism to proof-of-stake.
Formerly referred to as Ethereum 2.0, Ethereum’s consensus layer has now fully merged with the original blockchain (execution layer). The Merge was completed on September 15, 2022, marking the Ethereum network’s transition from proof-of-work (PoW) to proof-of-stake (PoS). According to the network, the Merge has brought down Ethereum’s energy consumption by around 99.95%.
From a technical perspective, the Merge saw Ethereum’s original execution layer, or the mainnet, merged with its new PoS consensus layer called the Beacon Chain. The Merge is just the first step in Ethereum’s development roadmap, which includes succeeding stages such as The Surge, The Verge, The Purge and The Splurge.
According to Ethereum co-creator Vitalik Buterin, the Merge marks about 55% of the development work set to be done on the network. Ultimately, the goal is to make the network more scalable, sustainable and secure while remaining decentralized.
The Merge eliminated the need for PoW, enabling the network to be secured by Ethereum staking. Staking gives Ethereum holders a chance to collect rewards by providing the necessary computing power to validate transactions and secure the network. Read More...
