We have been discussing the merger plan for six months. There was a discussion about how it was delayed, what it would lead to, and more. Most importantly, we have the most discussion about the significance of this event. Finally, on September 15, the long-awaited merger finally happened.
This is the transition of the Ethereum blockchain to proof-of-stake (PoS) and was planned by Ethereum creator Vitalik Buterin shortly after the release of Ethereum. The merger is one of the main points of Ethereum’s long roadmap (aka “Eth2”). The goal of Eth2 is to make Ethereum more scalable, secure, and sustainable.
There is one more important stage on the road to merger – the beacon chain. This is a fork of the classic Ethereum Proof of Work (PoW) network that brings PoS to Ethereum. The Beacon Chain is developing in parallel with the main Ethereum network to facilitate mergers. On September 15th, the merger happened, and now, neither PoW nor the beacon chain exists on Ethereum. The crypto giant has fully switched to PoS.
Consolidated explanations. Source: Ethereum website
This article will discuss expectations and how the merger was passed. We’ll also be looking at events in the first few days after the merger.
The sprint toward the merger started this spring. At the time, there was a strong feeling in the crypto community that a merger would happen soon. This feeling is further reinforced by the growing news from developers about the impending merger. Then there’s the delay and annoying difficulty bomb. We will no longer focus on this.
In the week leading up to the merger, there was a lot of interest in the event, with the number of search queries on Google breaking all previous records, as you can see from the Google Trends graph.
Search for a query about merging. Source: Google Trends
There are so many search queries around the world that Google has added a countdown clock.
Google’s merged countdown clock. Source: Cryptocurrency
In early September, in the final stages before the merger, one of the tests in the Goerli network we wrote about before passed successfully. In addition, the Bellatrix hard fork was also successfully carried out.
The Bellatrix hard fork was the last beacon chain upgrade before the merger. Its purpose is to update and synchronize nodes. With this update, validators are able to create so-called beacon blocks. This update allows the merge to pass.
The Bellatrix hard fork led to a noticeable increase in the price of ETH, but after the merger, the price of ETH began to decline and has continued to decline until now.
Of course, the crypto community has different views on the merger. Some people are happy, some don’t think it’s a bad thing, but everyone is holding their breath in anticipation of this great event.
Those unhappy with the merger (mostly miners) focused on ETHPoW (aka ETHW), which, according to the developers, should be an alternative to Ethereum mining. The price of ETHW has risen rapidly, and cryptocurrency exchanges such as FTX and Bybit have even launched a new token spot trading. However, following the merger, the asset’s price collapsed.
ETHW price chart. Source: Coinmarketcap
Miners are also pinning their hopes on another, older alternative to Ethereum, which runs on PoW. The ancient Ethereum Classic has become a miner’s paradise. It did not suffer the tragic fate of ETHW, but the price also rose before the merger and fell after the merger. ETC’s chart is not as depressing as ETHW’s, and even ETC has a chance to grow. The most likely reason for this result is that ETC has a much larger capitalization and its history is much deeper than that of the new ETHW.
ETC price chart. Source: Coinmarketcap
But on the other hand, Ethereum Classic’s hash rate has grown significantly, which shows that some miners are already devoting their hash power to mining etc.
Ethereum Classic hash rate chart. Source: 2miners
There is nothing wrong with merging. Everything went smoothly without glitches, and the developers congratulate everyone for that.
Those who care about the environment are also happy to join the merger. After all, Ethereum has become more energy efficient than ever. As Polygon stated in a blog post, thanks to the merger, Ethereum’s carbon footprint will be significantly reduced.
It is estimated that the merger will offset up to 99.91% of the carbon emissions in the Polygon network, reducing the total annual emissions to just 56.22 tons of CO2 equiv…and making the chain one of the greenest in Web3. “
Furthermore, according to Ethereum researcher Justin Drake, global electricity consumption will drop by 0.2% due to the merger.
Before the merger, someone even managed to create an NFT on the last Ethereum PoW block. This can be seen from Etherscan’s data.
Now “The Last POW Block” is placed on the OpenSea platform and is worth 20 ETH.
As for the following events that occurred in the first few days after the merger, the price of ETH dropped significantly. It’s not entirely clear what caused this. Maybe the hype has died down and people are starting to dump ETH for fear of losing money. No one knows for sure if its price will move further.
The merger has finally happened, and we congratulate the developers of Ethereum. It’s been a long and thorny road. But so far, it’s unclear where this path will lead Ethereum. We will continue to observe.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/ethereum-merge-before-period-after/
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