The Merge, also known as Ethereum 2.0, will be delayed once more. Tim Beiko, an Ethereum developer, says that the Merge will not take place in June but rather a few months later. He stated in a tweet that we are now in the final chapter of Proof of Work for Ethereum.
This announcement drew mixed reactions from the community. On the one hand, miners would prefer more time to mine ETH. @TripleSack, a Twitter user and an ETH miner, wants to know if miners will be left dry as The Merge nears. Tim strongly advised the miner to stop investing in more equipment at this time. However, many stakeholders remain optimistic and look forward to Ethereum 2.0’s launch.
So.. What Is The Merge?
Ethereum is currently one of the largest blockchain networks, and is also home to tons of blockchain projects. These include DeFi protocols, games and metaverse projects as well as NFTs. The PoW consensus mechanism has been subject to many criticisms, including the negative impact on the environment that mining ETH has had on the environment. Digiconomist claims that Ethereum’s current footprint equals the entire Dutch energy consumption. This is not sustainable.
The merger was previously called ‘The Docking. The Merge is basically merging the existing Ethereum Mainnet with a beacon chain proof-of stake system. It will result in a complete transition from the PoW system to a PoS one when it finally merges.
Consequently, it eliminates the need for energy-intensive mining, and instead secures the network using staked ETH. It will also significantly decrease ETH issuance. This is where ETH becomes net inflationary. As of now, it is set to be around Q3/Q4 2022.
While many blockchain projects begin with PoS, Ethereum must incorporate all of its history into the new system. The team is working hard on a safe merger, rather than a quick one. Kiln is the latest merge testnet. Uniswap and Blockdaemon have already begun testing. The delay was due to several implementation problems during the PoS transition.
Moving Forward
Nevertheless, The Merge is only the beginning of this transition. With Ethereum 2.0 live, withdrawals of staked ETH will be temporarily halted. Plans for the next Ethereum update, ‘Shanghai, are intensifying. NFT enthusiasts will still be concerned about Ethereum gas fees even with Ethereum 2.0. Although ‘Shanghai” may reduce Layer 2 gas costs , due to the amortized gas cost of L1 data storage,
On a side note, if you’re looking for a face to face meetup, the team will be in Amsterdam for Devconnect next week.
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