The current Ethereum Mainnet will soon be combined with the Beacon Chain proof-of-stake system. This will be the final step in Ethereum’s transition from proof-of-work to proof-of-stake.
What exactly is The Merge?
With the Merge, Ethereum’s existing execution layer (the Mainnet we use today) will be joined to its upcoming proof-of-stake consensus layer, the Beacon Chain. With this method, energy-intensive mining is not required, instead staked ETH is used to secure the network. Scalability, security, and sustainability are now a reality, which is an exciting step in realising the Ethereum vision.
Beacon Chain was originally shipped separately from Mainnet. As long as the Beacon Chain runs in parallel using proof-of-stake, Ethereum Mainnet’s accounts, balances, smart contracts, and blockchain state will remain protected by proof-of-work. In the coming Merge, proof-of-stake will replace proof-of-work permanently.
Is there anything I need to do to prepare?
In a nutshell, nothing.
Before The Merge, you do not need to do anything with your funds or wallet if you are an ETH user or holder, or if you are a staker who does not operate a node.
Even after switching from proof-of-work to proof-of-stake, Ethereum’s history since genesis remains intact and unaltered. If you had funds in your wallet before The Merge, they will still be accessible after The Merge. You do not need to take any action to upgrade.
During the Merge of Ethereum Mainnet, you should be on high alert for scams attempting to take advantage of users. You do not need to send your ETH anywhere in order to “upgrade to ETH2.0” There is no “ETH2” token, and your funds will remain secure.
After The Merge
As a result, Ethereum’s proof-of-work era will come to an end, and an era of more eco-friendly, sustainable protocol will begin.
The benefits of a proof-of-stake merge will enable the network to scale more rapidly and will also reduce energy consumption which currently relies heavily on miners in a proof-of-work system. Estimates say that Ethereum’s energy consumption will be reduced by 99.95% as a result of the Merge.
Much has been said about the merger during the last two years, and it seems that we have indeed reached the milestone where the merger is supposed to take place. According to recent reports from the Ethereum network, the merger will take place during the month of September – let’s cross our fingers that the merger will indeed be successful.