Users may be disappointed as Ethereum developers clear up misconceptions surrounding The Merge.
In a blog post on Wednesday on Ethereum.org, developers debunk several misconceptions as they work to carry out the Ethereum Merge on the mainnet.
Some Ethereum users may be disappointed to find that following the Merge, there will be no reduction in the gas fee or increased transaction processing speed. Notably, significant scalability improvements through sharding are expected in future upgrades, which several pundits say are not coming anytime soon.
Additionally, developers clarify that users will not need to stake Ethereum to run a node. Some other vital clarifications include that users will not be able to withdraw staked ETH immediately after the Merge. Notably, staked ETH will be unlocked in the Shanghai upgrade.
Another thing to note is that The Merge upgrade will not result in network downtime. Developers explain that the Ethereum transition to proof-of-stake (PoS) is designed to happen with zero downtime.
Misconceptions Summary:
- “Running a node requires staking 32 ETH.
- The Merge will reduce gas fees.
- Transactions will be noticeably faster after The Merge.
- You can withdraw staked ETH once The Merge occurs.
- Validators will not receive any liquid ETH rewards til the Shanghai upgrade when withdrawals are enabled.
- When withdrawals are enabled, stakers will all exit at once.
- Staking APR is expected to triple after The Merge.
- The Merge will result in downtime of the chain.”
It is worth noting that the migration of the Ethereum network from the proof-of-work (PoW) consensus model to the PoS mechanism has been years in the making. Some of the actual changes expected from The Merge include a massive reduction in Ethereum’s energy footprint and a similarly significant reduction in its supply. As explained by Lark Davis, this reduction in supply combined with its burning mechanism will make the asset deflationary.
The Merge is currently expected to launch on the mainnet on September 15. Notably, last Thursday, developers successfully launched The Merge on Goerli, the final Ethereum testnet.
Meanwhile, not everyone is excited about the network’s consensus mechanism shift. Notably, Ethereum miners are working to create a PoW fork of the Ethereum network.
As The Merge approaches, Ethereum has become the center of market speculation. Options traders now speculate that the asset price could plummet following the Merge. Ethereum is currently trading at the $1868 price point, 1.14% down in the last 24 hours but up 2.83% in the last seven days.
– Advertisement –
Disclaimer
The content is for informational purposes only and may include the author’s personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.
Source: https://thecryptobasic.com/2022/08/17/ethereum-developers-clear-eight-big-misconceptions-surrounding-the-merge-as-the-upgrade-approaches/?utm_source=rss&utm_medium=rss&utm_campaign=ethereum-developers-clear-eight-big-misconceptions-surrounding-the-merge-as-the-upgrade-approaches