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Ethereum 2.0 is on its way. Here’s what you can expect if you own Ethereum (ETH).
In September 2022, the imminent Merge (Ethereum 2.0) is expected to replace Ethereum’s Mainnet with the Beacon Chain and a variety of sharded chains. This step effectively ends Ethereum’s proof-of-work (PoW) method, completing the ultimate shift to a proof-of-stake (PoS) model.
To put it another way, envision Ethereum as a racing vehicle, and Beacon Chain as a new, more fuel-efficient engine that will replace the old engine in the middle of the race. Everything else about the car will remain the same, with the exception of one big change: how it runs.
I own ETH; How Should I GET READY for the Merge?
The short answer is that users/owners will not need to do anything because the Merge will not affect Ethereum holders’ funds. After The Merge, all Ethereum funds will be transferred over, and Ethereum will continue to show in users’ wallets as ETH. However, until The Merge is completed, most Exchange plateforms might temporarily halt Ethereum deposits and withdrawals.
Users should be careful of scammers that ask them to buy “ETH2” tokens or send funds to a random wallet address in order to “finish the upgrade.” Exchange platforms would never request that users donate crypto in this manner.
What Effect Will the Merger Have on Crypto Products?
Except for the removal of ETH from the mining services and a short halt on ETH borrowing, deposits, and withdrawals, The Merge will have no impact on the majority of the crypto related services. Furthermore, individuals who have locked their ETH on Ethereum 2.0 staking service can exchange their tokens for ETH after The Merge.
In the Case of a Fork
Please keep in mind that if Ethereum forks into two separate networks, the “ETH” ticker will correspond to the new Ethereum PoS chain. The split cryptocurrency, on the other hand, will still go through the rigorous listing procedure that any token listed on the exchange platforms must go through.
Bear in mind that a fork may or may not occur. Any hard fork during The Merge, according to Ethereum’s team, will be unauthorized. If the “unofficial” fork occurs, exchange platforms will provide more information about token distribution in a subsequent announcement.
Staking, Gas Fees, and Speed
Here’s a basic rundown of how The Merge will influence Ethereum transaction speeds, gas fees, and staking.
- Transaction time
After the change, Ethereum holders may expect similar transaction speeds. The average user will not notice the little modifications.
- Gas fees
For the time being, Ethereum gas fees will remain unchanged. In principle, the Ethereum upgrade lays the groundwork for sharding, which might lead to lower gas fees in the future.
People who stake Ethereum will help safeguard the network rather than miners. It should be noted that stakers will be unable to withdraw their staked ETH for six to twelve months following The Merge.
However, once Ethereum implements the Shanghai Upgrade, the network will allow daily withdrawals of up to 40,000 staked ETH.
As a reminder, The significant upgrade “The Merge” will make Ethereum 99% more energy-efficient because the PoW element of Ethereum will be removed, effectively eliminating Ethereum miners for good. You may have observed the PoS Beacon Chain back in 2020, however that chain was neutered and parallel operating with the Ethereum mainnet, and following the update, that chain will be integrated to the Ethereum mainnet.
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