Ethereum (ETH) will move from Proof-of-Work (PoW) consensus to Proof-of-Stake (PoS) consensus very soon. It is true that the Merge will bring enormous benefits to Ethereum, but there are risks to consider. In this context, analysts advise against using the network on the day of the transition. Learn about the different risks associated with the Ethereum (ETH) merger.
What are the risks associated with Ethereum Merging?
Coin Metrics indicated the risks associated with Merge in a recent report titled Mapping Out The Merge. According to this report,many things can go wrong during a network migration of this magnitude.The report highlights in particular that there could be price differences at the level of DeFi protocols during the merger. The same problem can arise at the level of decentralized exchanges (DEX) and on-chain loan markets.
Additionally, there is a risk of changing the order of blocks on Ethereum (ETH) on Merge Day. Such a situation can disrupt the network and lead to the blocking of a large number of transactions. In this context, Coin Metrics recommends Ethereum users to refrain from making any transactions on Merge Day. They also explain that the fictitious merger on the Goerli testnet did not happen quickly.
Indeed, it was necessary to make the transition twice on the nodes to succeed. If this was an actual merger, network uptime would have been significantly disrupted. Remember that this fictitious merger was the last test before the real Merge scheduled between September 10 and 20.
According to Coin Metrics, there are many “factors that may affect the availability of Ethereumon Merge Day. It is therefore preferable that blockchain users do not carry out any transactions on the day of the event. Once the merger is complete, they can easily enjoy a “host of exciting new scalability solutions“.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service ofdaily and weekly so you don’t miss any of the essential Tremplin.io!