The Merge joined Ethereum’s initial execution and PoS consensus layers. It altered transaction validation and reduced energy utilization by 99.95%. Learn more in this guide!
What is Ethereum Merge?
As the name indicates, the merge is the process of merging two blockchains. It combines Ethereum’s execution layer, Mainnet, and a consensus known as Beacon Chain. Both of which now exist as one.
The new Ethereum blockchain relies on the Proof-of-Stake consensus algorithm to verify transactions. The main intention is to make Ethereum more energy efficient.
The upgrade to the blockchain eliminates the need for high-energy mining, in which cryptocurrency miners use high-powered computers to solve complex math problems. The Proof-of-Stake validators are now responsible for confirming the authenticity of each transaction.
Importance of The Ethereum Merge
The upgrade to the blockchain comes with positive impacts. Some of these include:
Sharding
The significant importance of the Ethereum merge is that it lays the foundation for Ethereum to grow its capacity to become faster and less costly. A process known as sharding would be introduced to achieve this.
Sharding will break down the main Ethereum blockchain into smaller blockchains. This means that each validator would focus on managing their blockchain, known as a shard, instead of having to confirm all transactions on the main blockchain.
Shards will increase Ethereum’s capacity to store and access data, allowing for significant improvements above the current 15–45 transactions per second limit. Sharding is set to roll out in 2023.
Less Pollution to The Environment
The merger will result in a 99.95% reduction in energy consumption.
The Ethereum network will no longer need high-powered computers to operate. This eliminates the need for specialized hardware and reduces electrical waste.
More Security
The merge makes Ethereum more secure and less vulnerable to hackers.
Following the merger, the required initial investment to confirm transactions on the blockchain would be around $55,000, or 33 ETH. This is a cost hacker would need to bear to get into the network.
Interesting read right? join us next week for the part 2
>>>
Stay connected on our social media pages
And ask questions on our discord 👇
