Ethereum is scheduled to undergo its biggest network update ever in 2022. As a result, Ethereum (ETH) is completing the last steps of the much awaited update that will eliminate the practice of mining ether via proof-of-work (PoW). Here’s a roundup on all new developments preceding the Ethereum merge.
Recap: What’s Ethereum Merge?
Ethereum’s current Proof of Work (PoW) consensus method, popularly known as mining, will be replaced by the considerably more environmentally friendly Proof of Stake (PoS) consensus mechanism. Since the currently operational beacon chain will combine with the current Ethereum mainnet chain, the switch from PoW to PoS is known as “the Merge.” The network’s history and functioning are preserved. However, the consensus method is altered.
ETH Developer Confirms Goerli Merger Date
The Goerli testnet transition’s specifics were disclosed this week by principal Ethereum developer Tim Beiko. Before switching to proof of stake (PoS), which is expected to happen in the middle of September, Goerli will be the network’s last testnet.
Tim Beiko, the principal Ethereum developer, revealed the schedule and specifics of this week’s upgrade to the Ethereum Merge in a Tweet. On August 4 and in two phases, the Goreli testnet and the Prater Beacon Chain will join.
Second Upgrade Phase to Follow
One of the most significant technical advancements in the history of cryptocurrency, this update is the culmination of three years of research and development work on the part of Ethereum (ETH) developers. Instead than using blocks to track progress, the Ethereum PoS network uses epochs, each of which can include up to 32 blocks.
Proof-of-work (PoW) to proof-of-stake (PoS) conversion will take place during the second stage of the upgrade, dubbed Paris. This phase is anticipated to be completed between August 6 and August 12.
The completion of this second phase is anticipated between August 6 and 12. A specific Terminal Total Difficulty (TTD) of 10790000 is set to kickstart the Paris upgrade. The next block will only be created by a PoS validator after the execution layer passes the TTD threshold.
What Buterin had to Say about a Week Ago
On Thursday, Ethereum co-founder Vitalik Buterin presented the roadmap for the “smart contract” blockchain at the Ethereum Community Conference (EThCC) in Paris.
Buterin talked about the planned “Merge,” in which Ethereum will completely switch from a proof-of-work (PoW) technique for confirming on-chain transactions to a proof-of-stake (PoS) process that uses less energy.
Buterin also asserts that the network’s monetary policy is also shifting.
According to him, the transition from PoW to PoS will result in a decrease in the quantity of ether issued annually from 5 million to be determined by an equation based on the amount of ether staked.
What are the Expected Outcomes?
Ethereum staking will take the place of mining as the method for adding blocks to the mainnet of Ethereum (ETH).
Every significant update typically serves as a potent short-term boost for the price of an altcoin. Additionally, ETH owners will be encouraged to lock their wealth for staking as a result of Ethereum’s (ETH) move to proof of stake. This will thus greatly lessen the selling pressure.