Ethereum, a popular cryptocurrency network, has implemented a long-awaited software upgrade, called the Merge, moving to a more environmentally friendly structure after years of delays, arguments, and restless experimentation.
Even while Ethereum, like bitcoin, is struggling in the face of continued issues brought on by more significant economic uncertainties, experts say the combination has the potential to increase the value of Ethereum. As a result, despite the fact that another Fed rate increase is widely anticipated next week, Ethereum prices could still rise in the coming days. In other words, the only thing you can count on for sure is more uncertainty.
Let’s Define The Merge
Ethereum’s long-awaited transition from its current “Proof-of-Work” consensus mechanism to a “Proof-of-Stake” system is being implemented with the Merge upgrade. The Merge itself is a multi-stage procedure, with the first two stages being the Bellatrix and Paris improvements. Bellatrix initiated The Merge on September 6, 2022, at 11:34:47 am UTC. Bellatrix is an improvement to the consensus layer of existing networks. Paris, the successor of Bellatrix, will serve as Ethereum’s execution layer when it makes the switch from proof-of-work to proof-of-stake. Since the exact date of Paris is highly dependent on the proof-of-work hash rate, it remains unknown. Paris will be triggered by a certain Total Difficulty threshold, dubbed the Terminal Total Difficulty (TTD). The TTD is the last Ethereum block’s needed total difficulty. Simply said, TTD is the number of hashes that must be mined before Proof-of-Stake takes over completely.
What comes right after “The Merge”?
When this transition is finalized, the Beacon Chain that is now live will assume responsibility for validating new transactions using Proof-of-Stake, and Ethereum’s aging Proof-of-Work paradigm will be retired for good. In total, validators on the Beacon Chain have staked almost 13 million ETH. All Ethereum transactions, smart contracts, and balances since July 2015 will be merged with the Beacon Chain as the mainnet (the main network of the Ethereum blockchain) is combined with the Beacon Chain.
Importance of The Merge
The Merge has been in the works for six years, and its potential material and philosophical ramifications have led many to call it a watershed moment in the development of Bitcoin. After months of market instability due to, among other things, inflation and rising interest rates, this milestone might help restore confidence and infuse some much-needed optimism. Some have said that Ethereum’s Merge “will establish that a decentralized and permissionless network can operate in an energy-efficient manner.” As an added bonus, a merger of this magnitude is extremely unusual in the cryptographic world and may never happen again.
What will happen to me and my ETH after The Merge?
Not much, to put it bluntly. Users should experience no disruption as a result of the Merge. As a precautionary step, Coinbase will temporarily halt deposits and withdrawals for some tokens, including new Ethereum (ETH), ERC-20, Polygon (MATIC), Optimism (OP), PWETH, PUSDC, and PMATIC tokens; however, no other systems or currencies are expected to be impacted. Those who have staked ETH, however, will not have access to their funds or be able to sell or transfer them immediately following The Merge. Once the Ethereum protocol has been updated, the staked ETH will be unlocked and made available. Until now, the anticipated renovation completion date has been set for early 2023. In the meantime, stay tuned!
Robofi is a Defi platform that envisions a marketplace for revolutionary Dao crypto trading bots. Through its IBO (Initial Bot Offering) system, community members can maximize their earnings in an easy, simple, and secure way. We create a safe and transparent environment based on blockchain technologies that help developers bring crypto trading bot platforms to the market. In addition, individuals will have easy access to these bot applications, thereby generating more earning opportunities. RoboFi ecosystem is fueled by the VICS token.
VICS token has a distinctive and enticing concept. VICS is the BEP-20 token, built on the Binance smart chain. It is a core utility token in the RoboFi ecosystem, the reliable crypto trading bot marketplace. One important utility is to own the governance token of DABots and participate in an IBO (Initial Bot Offering) to receive additional incentives. VICS is available on major exchanges for trading.