Recently, searches for the keyword ‘Ethereum Merge‘ have increased notoriously among investors in the blockchain world, this due to the fact that its structure will be updated in search of greater efficiency at the energy level.
This change means that Ethereum will move from a proof-of-work (PoW) model to a proof-of-stake (PoS) mechanism, this with the aim of decreasing its consumption of fossil fuels.
The PoW consensus mechanism is a process by which different nodes in a network change the state of a blockchain network by achieving mutual consensus, but it is also one of the biggest triggers of global warming.
This is because as the number of transactions on blockchains increases, so does the computational power required to solve those puzzles, which equals higher energy consumption.
Consequences of the Ethereum Merge
One of the goals of this change is to make Ethereum cryptographic mining obsolete so as to reduce its environmental impact, along with improved blockchain security against potential attacks.
However, another result of this merge would be that fewer coins would be issued because the supply of Ether would also decrease.
2 misconceptions about the Ethereum Merge
Ethereum Merge will not create a new token
Ethereum’s cryptocurrency, Ether (ETH), will remain the same and this was confirmed by Ethereum developer Tim Beiko, which has a specific reason.
“Unfortunately, malicious actors have attempted to use the inappropriate Eth2 name to scam users by telling them to exchange their ETH for ‘ETH2’ tokens or that they must somehow migrate their ETH before the Eth2 upgrade,” the Ethereum Foundation said via a blog post.
Ethereum fees will not be reduced with the merge
Ethereum transaction fees will not be reduced with the merge, as it will simply move from a proof-of-work model to a proof-of-stake, which was confirmed by Beiko himself.