For The Merge, Vitalik Buterin confirms on Twitter a launch between September 13 and 15. This September 6 was the implementation of Bellatrix, the last update before the final transition to Ethereum 2.0. The countdown begins. The Merge is coming in a few days.
What does Bellatrix involve?
With The Merge, Ethereum moves from Proof-of-Work (PoW) consensus to a Proof-of-Stake (PoS) consensus mechanism. A first for a large-scale network. Like any great self-respecting event, it takes place in several stages including the Bellatrix update. The latter took effect on September 6. And this, when the Ethereum Epoch value reached 144,896 on the proof-of-stake chain.
Thanks to Bellatrix, validators can start producing updated Beacon blocks. These blocks will then contain the code base for merging the two layers. This is an imperative step for all potential ETH validators who have staked on the ETH 2.0 deposit contract. And this, to upgrade their customers. Vitalik Buterin also tweeted about it. “Make sure to update your customers!” “, he writes.
The Merge: after Bellatrix, Paris
Bellatrix is a hard fork of Ethereum’s Beacon chain which prepares the blockchain for the final transition to Proof-of-Stake. 73.1% of nodes on the Ethereum network reported that they were ready for the merger. The Beacon chain introduced proof-of-stake to Ethereum in December 2020. It currently acts as an account registry that coordinates the network of stakers. The Ethereum runtime layer is expected to be merged into the Beacon Chain via an upgrade to the hard fork called Paris.
Ethereum still today consists of two chains: the Mainnet and the Beacon Chain. The merger brings these two chains together through a hot-swap consensus mechanism. Two hard forks are needed to bring these two chains together: Bellatrix (Consensus Layer) and Paris (Execution Layer). Paris will put an end to the Proof-of-Work consensus on Ethereum, and marks the beginning of the Proof-of-Stake era.
And then ?
So far, transactions on the Ethereum blockchain are time-consuming and expensive, not to mention energy-intensive. Yet Web 3.0 applications need a scalable, fast, and inexpensive transaction approval mechanism. For Ethereum, the PoW quickly became a handicap. The merger will have a significant impact on the price of ETH. The Merge should result in greater liquidity and better monitoring of the ecosystem.
It also assumes more consistent prices and better stability for ETH compared to other cryptocurrencies. Moreover, the addition of new DApps and smart contracts on the Ethereum network should benefit its long-term value. So far, it is impossible to say which crypto will become the dominant force in the future. Nevertheless, Ethereum seems to be moving in this direction. Especially since the merger boosts its growth potential.
The merger has the potential to speed up the network and reduce costs. Ethereum 2.0 could give the coin a strong possibility to increase its current market value. The market itself and other factors can also influence prices.
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