Finally, after years Ethereum will upgrade its consensus from Proof of Work to Proof of Stake. Yes, you heard right! After a long delay, Ethereum will be energy efficient this month and its coin - ETH - will be deflationary.
Let's throwback to the end of 2017. One of the OG NFTs, CryptoKitties released on the Ethereum blockchain. That year, the concept of NFT and ERC-721 (token contract format for NFT) was new, and in the experimental stage. The mint price is free - who doesn't love free stuff? - Many people want to have CryptoKitties. This caused Ethereum to experience its first congestion.
After, the gas fee that goes to the moon, they realize Ethereum needs to be scalable. To make Ethereum faster and cheaper cough - getting broke by gas fees, upgrades such as converting consensus to Proof of Stake and Sharding are needed. The upgrade will be rolled out in 4 different phases, Ethereum Proof of Stake is the first phase:
This upgrade will change the Ethereum consensus from Proof of Work to Proof of Stake.
Why? Because Proof of Work is wasting too much energy.
One of the normie's biggest criticisms of crypto is the wasteful use of electrical energy. By replacing consensus, Ethereum will use inconsiderable low energy. A logical step to make a blockchain that can be utilized by the public.
Let’s say Ethereum is a car. The machine is an old-school engine and uses gasoline. If we replace the engine with the latest engine with power from electricity, it’ll efficient, right?
The Merge is divided into 2 upgrades; Bellatrix Upgrade and Paris Upgrade.
Bellatrix Upgrade will be done during epoch 144896 or on September 6, 2022, at 11:34 UTC.
The Paris Upgrade is estimated to occur when the Terminal Total Difficulty value is at 58750000000000000000000 or around September 15, 2022, at 00:30 UTC if the Ethereum Hash Rate is stable.
People tend to be hard to accept changes, especially the big ones.
Miners don't agree with the Ethereum consensus change because the money field is gone. From my observation, there is a possibility miners will hard-fork Ethereum again - after Etherum Classic - to keep Ethereum PoW alive. So, after The Merge is merged, there will be 2 scenarios:
The Merge is done, and Ethereum PoW turns into PoS. There is no PoW version of Ethereum. We’ll live in peace.
The Merge is rolled out, and Ethereum PoW turns into PoS. However, miners hard-forked Ethereum which resulted in 3 versions of Ethereum:
Ethereum PoS
Ethereum PoW
Ethereum Classic
Let's say Scenario 2 happens, the PoW version of Ethereum will be alive along with the unit of value in it. It means that your balance will double in an instant in ETH PoW and in ETH PoS.
The drawback is that your assets that are in 99% ETH PoW will not last long because many projects will only support ETH PoS. However, you can still make profits. Just sell all your assets in ETH PoW.
There is an advanced method, but you need to be fast and work hard. It's possible that you will fight MEV bots. Check Olimpio’s thread to find out more:
https://twitter.com/OlimpioCrypto/status/1557445405289365505
Lastly, let's discuss the facts and myths of The Merge.
❌The Merge will make gas fees cheaper.
This upgrade simply changes the way Ethereum protects its network. Wait until the upgrade The Surge.
❌Stakers can withdraw staked ETH.
Wrong. Withdrawals can only be made during the Shanghai Upgrade.
❌ ETH staking requires 32 ETH. Not completely right. You can use @rocketpool or Lido Finance for staking ETH with a small nominal.
❌**APY Staking Will Pump Hard. **Not completely wrong. Staking APR will increase but will not be 50% depending on the use of the Ethereum blockchain. Ethereum will be eco-friendly Yes, Ethereum will use 99.95% less energy.
✅Ethereum will be eco-friendly. Yes, Ethereum will use 99.95% less energy.
✅ ETH will be deflationary Applied If the use of Ethereum is still the same as it is now or more. ETH will become ultrasound money.
I hope you enjoy today’s writing.
Subscribe below for another content
subscribe://
Support me by collecting this writing, your support will become a gas fee for me to create more content.
collect://
Finally, after years Ethereum will upgrade its consensus from Proof of Work to Proof of Stake. Yes, you heard right! After a long delay, Ethereum will be energy efficient this month and its coin - ETH - will be deflationary.
Let's throwback to the end of 2017. One of the OG NFTs, CryptoKitties released on the Ethereum blockchain. That year, the concept of NFT and ERC-721 (token contract format for NFT) was new, and in the experimental stage. The mint price is free - who doesn't love free stuff? - Many people want to have CryptoKitties. This caused Ethereum to experience its first congestion.
After, the gas fee that goes to the moon, they realize Ethereum needs to be scalable. To make Ethereum faster and cheaper cough - getting broke by gas fees, upgrades such as converting consensus to Proof of Stake and Sharding are needed. The upgrade will be rolled out in 4 different phases, Ethereum Proof of Stake is the first phase:
This upgrade will change the Ethereum consensus from Proof of Work to Proof of Stake.
Why? Because Proof of Work is wasting too much energy.
One of the normie's biggest criticisms of crypto is the wasteful use of electrical energy. By replacing consensus, Ethereum will use inconsiderable low energy. A logical step to make a blockchain that can be utilized by the public.
Let’s say Ethereum is a car. The machine is an old-school engine and uses gasoline. If we replace the engine with the latest engine with power from electricity, it’ll efficient, right?
The Merge is divided into 2 upgrades; Bellatrix Upgrade and Paris Upgrade.
Bellatrix Upgrade will be done during epoch 144896 or on September 6, 2022, at 11:34 UTC.
The Paris Upgrade is estimated to occur when the Terminal Total Difficulty value is at 58750000000000000000000 or around September 15, 2022, at 00:30 UTC if the Ethereum Hash Rate is stable.
People tend to be hard to accept changes, especially the big ones.
Miners don't agree with the Ethereum consensus change because the money field is gone. From my observation, there is a possibility miners will hard-fork Ethereum again - after Etherum Classic - to keep Ethereum PoW alive. So, after The Merge is merged, there will be 2 scenarios:
The Merge is done, and Ethereum PoW turns into PoS. There is no PoW version of Ethereum. We’ll live in peace.
The Merge is rolled out, and Ethereum PoW turns into PoS. However, miners hard-forked Ethereum which resulted in 3 versions of Ethereum:
Ethereum PoS
Ethereum PoW
Ethereum Classic
Let's say Scenario 2 happens, the PoW version of Ethereum will be alive along with the unit of value in it. It means that your balance will double in an instant in ETH PoW and in ETH PoS.
The drawback is that your assets that are in 99% ETH PoW will not last long because many projects will only support ETH PoS. However, you can still make profits. Just sell all your assets in ETH PoW.
There is an advanced method, but you need to be fast and work hard. It's possible that you will fight MEV bots. Check Olimpio’s thread to find out more:
https://twitter.com/OlimpioCrypto/status/1557445405289365505
Lastly, let's discuss the facts and myths of The Merge.
❌The Merge will make gas fees cheaper.
This upgrade simply changes the way Ethereum protects its network. Wait until the upgrade The Surge.
❌Stakers can withdraw staked ETH.
Wrong. Withdrawals can only be made during the Shanghai Upgrade.
❌ ETH staking requires 32 ETH. Not completely right. You can use @rocketpool or Lido Finance for staking ETH with a small nominal.
❌**APY Staking Will Pump Hard. **Not completely wrong. Staking APR will increase but will not be 50% depending on the use of the Ethereum blockchain. Ethereum will be eco-friendly Yes, Ethereum will use 99.95% less energy.
✅Ethereum will be eco-friendly. Yes, Ethereum will use 99.95% less energy.
✅ ETH will be deflationary Applied If the use of Ethereum is still the same as it is now or more. ETH will become ultrasound money.
I hope you enjoy today’s writing.
Subscribe below for another content
subscribe://
Support me by collecting this writing, your support will become a gas fee for me to create more content.
collect://
Share Dialog
Share Dialog
Subscribe to Another One
Subscribe to Another One
<100 subscribers
<100 subscribers
No activity yet