Ethereum has Officially Merged: Here’s What You Need to Know

September 15, 2022
by Leon Marshall,

Some exciting news has emerged from the digital world of crypto, Ethereum, the second largest crypto network, has officially completed the “the Merge”. What’s that we hear you ask? Allow us to explain…

Ethereum (ETH), the second largest blockchain network, has undergone a major change as of September 6th 2022. With the rise of popularity in DeFi and NFTs, the Ethereum network started enduring traffic bottlenecks and spikes in transaction fees. So, they devised a solution, meaning the network could continue delivering on its scalability roadmap.

Thus, the Merge was created.

What is the merge?

The current Ethereum Mainnet has now merged with the Beacon Chain proof-of-stake system. This will mark the end of proof-of-work for Ethereum and the complete transition to proof-of-stake.

Why Ethereum made the switch?

The Merge will not only alleviate the traffic bottlenecks and spikes in transaction fees, but it will also reduce Ethereum’s energy consumption by ~99.95%. This sets the stage for future scaling upgrades including sharding.

Of course, the transition has raised some questions for crypto investors and traders.

Is proof-of-stake a better system than proof-of-work?

For now, It’s hard to say. While it will cut energy usage, the switch has the potential to pose centralization and security risks.

How did the Merge go?

The Merger was a complete success, as officially announced by none other than Vitalik Buterin, Ethereum’s co-founder. In a recent tweet, Vitalik, the mastermind behind the Merge announced that this successful merge will “reduce worldwide electricity consumption by 0.2%”. This initially may seem like a small percentage, but when you consider that Bitcoin’s energy consumption alone is the same as the entire of Switzerland, you can visualise the impact that this merger will have. 

Will the Merge lead to a decrease in transaction fees?

Change in transaction fees is not expected because of the Merge. Other upcoming network updates, however, may help address this issue.

Will the price of ETH change after the Merge?

Addressing the network’s environmental impact and the decrease of ETH issued, as a result of this event, can lead to changes in its price. However, with so many variables, it is impossible to predict what will happen to Ethereum’s price.

What’s next for Vitalik and Ethereum?

See for yourselves, by checking Ethereum’s latest roadmap.

All times are AEST.