THE ETHEREUM MERGE, WHAT YOU NEED TO KNOW

Ethereum was developed by a programmer, Vitalik Buterin, in 2013, Gavin Wood and Charles Hoskinson, the additional founders. Ethereum is a decentralized, open-source blockchain that has smart contract functions embedded in it. Ether is the native currency of the project, also known as ETH. Ethereum is second to bitcoin, according to the global market capitalization.

In 2014, the development of Ethereum started, and it was crowdfunded, and the project did not go live until 30 July 2015. Due to the structure of the Ethereum project, it allows anyone to deploy permanent and immutable decentralized applications onto it, with which its users can currently the project only about 1 million transactions per day. Still, with this merge, it is hoped that the number of transactions processed will spike to about 1 billion daily transactions.

MAJOR UPGRADES OF THE ETHEREUM BLOCKCHAIN

In March 2016, the Ethereum blockchain community was split into 2 different chains known as the Ethereum classic. This split was due to a hacker who attached the DAO smart contract chain and stole about 100 million dollars. After this attack, the Byzantium upgrade was done to reduce the block reward from 5 to 3 ETH and improve the smart contracts.

Later the multi-glacier upgrade was upgrade done to update and delay the difficulty bomb, then the beacon chain genesis. The arrow glacier upgrades to delay the difficulty bomb was done in December 2021.

SO WHAT’S THE ETHEREUM MERGE

The merge is the second biggest event in the history of cryptocurrency projects after the Bitcoin, and the Ethereum blockchain emerged. It is the entire transaction of the Ethereum blockchain from the proof of work consensus algorithm to the proof of stake merging, basically the proof of stake network with an execution layer. In the process, the Ethereum mainnet will merge with the beacon chain to transition to the proof of stake algorithm.

Previously, proof of work has been used to secure the main Ethereum blockchain. This is the blockchain we are all familiar with and has contained every transaction, smart contract, and balance since it began in July 2015. Throughout Ethereum history, developers have worked hard to prepare for an eventual transition from proof of work to proof of stake. On December 1st, 2020, the beacon chain was created and has since existed as a separate blockchain to the mainnet, running parallel to it.

The Beacon Chain has not handled transactions on the Mainnet. Instead, it has relied on active validators and their account balances in order to gain consensus on its state. The time for the Beacon Chain to reach consensus more is now approaching after lengthy testing. Including execution layer transactions and account balances, the Beacon Chain will serve as the consensus engine for all network data following The Merge.

The Beacon Chain will now be the official mechanism for producing blocks as of the Merge. Valid blocks can no longer be created by mining. In its place, the proof-of-stake validators take on this responsibility and are in charge of processing all transactions' legitimacy and submitting blocks.

ABOUT ETHEREUM 2.0

As The Merge draws near, the word "Eth2" has become obsolete. There won't be two separate Ethereum networks anymore; there will only be Ethereum after 'Eth1' and 'Eth2' have been combined into a single chain.

It is important to note that; the "execution layer," currently called "Eth1," is in charge of transactions and execution.

The "consensus layer," which manages proof-of-stake consensus, is now called "Eth2."

WHEN IS THE MERGE COMING UP

The Merge will take place on September 14 and 15. The network hash rate can be observed at bordel.wtf and will determine the exact timing. When the network reaches the TTD, an accumulated difficulty threshold, the Merge will be initiated (total terminal difficulty).

What do you think about the merge, do you think it will push the crypto market to good bullish level or bearish?

Let's know your thought

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