The merge is slang used in the crypto world to describe the transition of Ethereum from a proof-of-work consensus algorithm to one that uses proof-of-stake.
The merge is to help take care of the energy-intensive PoW that has been a concern for bitcoin miners. The process is designed to secure the network using staked ETH.
The Merge is the first stage of five from the Ethereum protocol’s incoming development. The others include ”The Surge”, ”The Verge”, ”The Purge”, and ”The Splurge”.
Vitalik Buterin and several other ETH enthusiasts have mentioned ”The Merge” as a phase to help boast the Ethereum network to its phase tagged ”Ethereum 2.0”.
Ethereum’s (ETH) Goerli testnet completed its merge with the PoS consensus mechanism in the early hours of August 11. The next phase has been announced which is anticipated by crypto enthusiasts.
7 Things to Know About The Merge
1. The Merge which is the next level Goerli Testnet Merge will move the ETH network from the proof-of-work [PoW] consensus mechanism to the proof-of-stake [PoS] consensus mechanism.
2. The Merge is the moment where the mainnet [uses PoW] and the beacon chain [PoS] will come together.
3. The Merge will see the PoW consensus algorithm replaced by proof-of-stake permanently. It will eventually cut electricity usage by 99.95% and make validations much faster.
4. Holders of digital assets on this network will have their funds and assets safe as the mainnet and beacon chain come together effortlessly.
5. With the merge, there will no longer mining of ETH as the proof-of-stake consensus mechanism will be used. Validators will assume this role and will be responsible for processing the validity of all transactions and proposing blocks.
6. The Merge will change the overall consensus algorithm and will not expand the network capacity. For this reason, it won’t result in lower gas fees.
7. The Ethereum foundation has made it known that no record of the transaction on the network is lost during the merge process.
Conclusion
The Merge is one of the phases of the Ethereum’s network development. The protocol is set to move from the PoW system to the PoS system. It is an historic event that the whole crypto communities are looking out for.
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