Updates Regarding the Upcoming Ethereum Merge
What is The Merge?
The long-awaited “Merge upgrade” is Ethereum’s transition to a “Proof-of-Stake” consensus mechanism from its existing “Proof-of-Work” system. The Bellatrix & Paris upgrades are the two steps by which The Merge really occurs.
The Ethereum Merge is currently scheduled to occur on September 15, 2022, at 1:30 PM (UTC). Beginning approximately from 2022–09–15 at 12:30 PM (UTC), deposits and withdrawals on the Ethereum network (ERC-20) on various exchanges, will be suspended one hour prior to the Merge (UTC).
Depending on when the Terminal Total Difficulty Value of 58750000000000000000000 is reached, this projected time may fluctuate.
The Ethereum Proof-of-Work (PoW) Mainnet and its forked coin would adopt the “ETHW” ticker in the case of a chain split (Scenario B).
What happens immediately after The Merge?
Once finished, Ethereum’s traditional Proof-of-Work paradigm will be permanently retired and the Beacon Chain will take over the function of validating new transactions through Proof-of-Stake.
Over 13 million ETH have already been staked on the Beacon Chain by validators. The entire transaction history of Ethereum, including each transaction, smart contract, and balance since July 2015, will be combined as the mainnet (the main network of the Ethereum blockchain) merges with the Beacon Chain.
Why is it so important?
Due to the possible material and philosophical ramifications, The Merge, which has been six years in the making, is regarded by many as a turning point in the history of cryptocurrencies. After months of market instability brought on, among other things, by inflation and rising interest rates, this milestone might help boost market confidence and infuse some much-needed optimism.
Ethereum’s Merge “will establish that a decentralized and permissionless network can run in an energy-efficient manner,” as one commentator put it. A fusion like this is also extremely unusual in the world of cryptocurrencies and might never occur again.
How does it affect me?
The quick response is hardly much. From the user’s perspective, The Merge is anticipated to be and ought to be seamless. As a precaution, Exchanges will temporarily halt some deposits and withdrawals for new Ethereum (ETH), ERC-20, Polygon (MATIC), Optimism (OP), PWETH, PUSDC, and PMATIC tokens.
However, it’s a possibility that balances for those who staked their ETH won’t be unlocked or immediately available for trading or transfer after The Merge. Once the Ethereum protocol has been upgraded, it is anticipated that stashed ETH will become available and unlockable. These being said, we advise you to not make any ETH-based transactions in the following hours, in order to avoid long-time finalization or even blocked transactions.