Ethereum is moving towards a Proof of Work consensus (PoW), and a Proof of Stake consensus algorithm. In an event dubbed as “The Merge”, the current network and its decentralized application will begin operating on the latter.
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Tim Beiko is a Core ETH Developer announced the successful roll-out of a Beacon Chain, or a mainnet PoS network, for its longest-lived PoW testnet “Ropsten”. This will aid developers in launching “The Merge” on this test network. It is scheduled for June 8,Th.
Ethereum’s developers may be moving steadily towards a Merge event in the next months if successful. Beiko explained that the Ropsten Beacon chain must fulfill certain conditions before it can operate on PoS consensus.
We need to have two things in Ropsten for The Merge. The first is that its beacon chain needs to activate the Bellatrix upgrade scheduled for June 2. Next, an appropriate PoW total difficulty level, Terminal Total Difficulty, (TTD), will be selected to activate the transition.
Beiko asked validators of nodes to get ready for the PoS transition. This could be one of the largest “The Merge” milestones in recent months and could provide validators with experience about “what a post-merge node is like”.
Beacon Chain Node Validators must meet the requirements for being active on The Post Merge Network, including running execution clients. PoW client will be required by validators.
Beiko added the following on what could be a glimpse of an Ethereum mainnet post “The Merge”:
Post-merge, validators receive the priority fees from transactions 💸 This happens on the execution layer, so those fees aren’t locked on the beacon chain. To get them, you need to set a “fee recipient” address upon starting your validator.
What could change on Ethereum with the Merge?
It will not have any direct impact on Ethereum holders and users. The new consensus layer will not affect ETH Ropsten miner operations.
ETH miners won’t be able to operate with the cryptocurrency after the Merge event on mainnet. It could cause a temporary shock in the crypto world.
ETH is one the most well-known cryptocurrencies and the easiest to mine. The Merge is probably the most hyped event in this cryptocurrency’s history.
This combination of ingredients, a sudden shift in the system, and a highly anticipated event could contribute to the creation of volatility around “The Merge”. Long-term, PoS migration may be a bullish catalyst to increase ETH’s price.
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At the time of writing, ETH’s price trades at $1,900 with a 3% profit in the last 24-hours. An increase in uncertainty and volatility in the macro-environment has caused a slowdown in cryptocurrency trading.
