Today, the developers of Ethereum implemented “Merge,” an upgrade that eliminates mining and significantly reduces the power consumption of the world’s second largest cryptocurrency. Today’s Action “Complete Ethereum’s transition to Proof of Stake consensus, formally shutting down Proof of Work and reducing power consumption by ~99.95%,” Ethereum.org merge page said.
The Ethereum blockchain has been around since July 2015, and planning to change the day has been in the works for several years now. Since a failed transition could cause chaos, “Ethereum developers over the past year have repeatedly postponed the date of their ‘merger’ to give themselves more time to prepare,” As previously written by Ars writer Timothy B. Lee, Its a detailed feature on the transition. Lee wrote that the merger “will put the world’s Ethereum miners out of work,” as the new system does not require the powerful graphics cards previously needed to maintain the blockchain and create new Ether.
The switch was very predictable. When the merge officially started at 6:43 AM UTC, more than 41,000 people were followed on YouTube to watch.Offer to integrate Ethereum MainnetCoinDesk Wrote. They were watching eagerly key metrics In noting that the Ethereum platforms remained intact. After about 15 long minutes, the merge was officially completed It’s finishedwhich means that its success can be declared.”
Prior to the merger, Ethereum’s annual energy consumption was similar to that of Chile, and its carbon footprint was similar to that of Hong Kong, according to Digiconomist’s Ethereum Energy Consumption Indicator.
The price of ether was By about 9% Today as of this writing, Bitcoin is down about 2.4 percent.
No more mining
The official Ethereum website states that the merger was a “joining on the original implementation layer of Ethereum (the main network that has been around since).” origin) with the new Proof of Stake consensus layer, Beacon Chain. It eliminated the need for energy-intensive mining and instead enabled the network to be secured with stacked ETH.”
The Beacon Chain was created in December 2020 “as a blockchain separate from the Mainnet, running in parallel.” After a lot of testing, she was ready to take over.
The Ethereum.org merge page says: “Beacon Chain was not originally processing Mainnet transactions. Instead, it was building consensus on its own status by approving active validators and their account balances.” “After extensive testing, it is time for the Beacon Chain to reach consensus on real-world data. After consolidation, the Beacon Chain has become the agreed engine for all network data, including execution layer transactions and account balances.”
Now that the change is complete, “Mining is no longer a way to produce valid blocks. Instead, Proof of Stake validators have taken on this role and are now responsible for handling the validity of all transactions and proposing blocks.” Mainnet’s joining the Beacon Chain also led to the consolidation of the entire Ethereum transaction history, so no record was lost in the process.
The change should be smooth for the people with the ether. Access to the funds will still be available without any user action. “There is no such thing as ‘old ETH’/’new ETH’ or ‘ETH1’/’ETH2’ and wallets work just as well after a merger as they did before – people who tell you otherwise are probably scammers,” The Ethereum Project said.
Less ether will be released
else Ethereum.org page It explains how the release of ether will change after the merger and why less ether should be released:
The ETH beacon chain validators are rewarded for proving the state of the chain and suggesting blocks. Bonuses (or penalties) are calculated and distributed in each period (every 6.4 minutes) based on the auditor’s performance. Auditor bonuses are Significantly Less than miner rewards issued on Proof of Work (2 ETH approximately every 13.5 seconds), as running a validation node is not an economically intensive activity and therefore does not require or guarantee a high reward.
By contrast, “mining is an intense economic activity, and requires high levels of ETH issuance to keep it going,” says the page. Prior to the merger, the total rewards for mining were around 13,000 ETH per day, and the staking rewards were 1,600 ETH per day.
“After the merger, there will be only 1,600 ETH left per day, resulting in a 90 percent drop in total new ETH issuance,” the page says. To participate, “auditors explicitly share capital in the form of ETH in a smart contract on Ethereum,” according to Proof of Stake Interpretation. “This pegged ETH acts as a security that can be destroyed if the checker acts dishonestly or lazy.”
The validator must deposit 32 ETH into the deposit contract and operate the software including the executing client, the agreed client, and the validator.
The Proof of Stake page says: “Whereas under Proof of Work the timing of blocks is determined by mining difficulty, in Proof of Stake the tempo is fixed.” “Time in Ethereum Proof of Stake is divided into slots (12 seconds) and vows (32 slots). One validator is randomly selected to be a block provider in each slot. This validator is responsible for creating a new block and sending it to other nodes on the network. Also in each slot. The panel of auditors is chosen at random, and their votes are used to determine the validity of the proposed block.”