The Merge is the event during which Ethereum’s new Proof-of-Stake (PoS) consensus layer, the Beacon Chain, merges with and takes the place of its Proof-of-Work (PoW) consensus engine that is currently responsible for the security and block production of the network.

After the Ethereum network becomes Proof-of-Stake, it will become much more scalable. This allows for, according to the network’s page on the matter, something called sharding. Sharding refers to the splitting of a database across multiple datasets, and means that nodes aren’t responsible for keeping a record of every single change in state. What this does is make the network more decentralized- a tantamount pillar of Ethereum’s ethos- and accessible.

As a result of the Merge, there may potentially be tokens that arise because of a fork. A fork could occur when current users of the network opt to stick with a version that still employs the use of its Proof-of-Work consensus mechanism.