A security expert says PoS is ‘theoretically’ not as secure as PoW. Meanwhile, Sam Bankman-Fried shares his thoughts on what might happen once Ethereum Merge is complete. Naeem Aslam, chief market analyst at AvaTrade, notes that Merge will be the main focus. Kristin Smith, executive director of the Blockchain Association, sees minor issues as likely.
“Ethereum Merge will cause some power loss in security”
cryptocoin.comAs you follow, Ethereum Merge is being touted as a major upgrade in the Blockchain world. Despite this, its transition to PoS theoretically makes it more vulnerable to exploitation. A security researcher notes that unlike Proof-of-Work (PoW) systems, a Proof-of-Stake (PoS) system notifies node validators in advance which blocks to verify. Therefore, he argues, it enables them to plan attacks.
The anonymous security expert is a Blockchain developer and security researcher working on the PoS layer-2 Blockchain. The researcher notes that if the validators manage to queue up two consecutive blocks to verify, an exploit could theoretically occur on the Merge Ethereum Blockchain. In this context, the expert makes the following statement:
If you control two consecutive blocks, you can start an exploit at block N and finish at block N+1 without any arbitrage bots coming in and fixing the price you manipulated in between. In terms of economic security, this vulnerability makes it relatively easy to carry out attacks.
The expert says it is also possible for miners to verify consecutive blocks in PoW networks. He notes that this means “all luck” and does not give the miner time to plan an attack. As a result, the security researcher argues that Ethereum will lose some strength in security once Ethereum Merge goes into effect.
FTX CEO warns of Ethereum Merge
Sam Bankman-Fried shares his thoughts on what might happen when the highly anticipated Merge is completed. In an interview with CNBC, the crypto billionaire says that in the long run, Merge will be beneficial for Ethereum. But he says it’s not unreasonable to expect some turbulence when it first occurs. Accordingly, the CEO of FTX comments:
In the long run, it will probably be exciting for the Ethereum community. I think it will allow for significantly faster and cheaper transactions. As with all major transitions, I think there will be some difficulty in the beginning. I think when this happens it’s going to be a messy activity around. This is inevitable both in the long term and possibly in the medium term.
Bankman-Fried also says that he expects some confusion and lack of preparation among those in the Ethereum community, which may initially cause some technical difficulties. The CEO also notes that some protocols will ‘change’ the transition. In addition, he anticipates that a cleanup will be required later on. Sam Bankman-Fried explains his views as follows:
First of all, I think this will have some forks. When you look at some people wanting a PoW variant on it, everyone expects the bulk of the activity in the transition to be a PoS Ethereum via this Merge. Obviously, there will be a large number of people in the ecosystem who will have to update the software to start processing new Blockchain. Most of them will be ready to do so right away. Some probably not. I expect APIs to break in ways that people don’t fully anticipate. Bug fixes will need to be made, at least in centralized assets.
“All eyes will be on Ethereum price”
Naeem Aslam, chief market analyst at AvaTrade, says that the crypto market is currently positive as Bitcoin crosses $22,000 and Ethereum continues to move towards the long-awaited Merge. “This transition to Ethereum 2.0 and PoS will be the main focus,” Aslam shared. Now, traders keep their eyes on the ETH price and watch carefully.
Popular on-chain data provider Santiment tweeted that the Ethereum Merge will take place later this week, on September 15. In this environment, investors also believe that ETH volatility is inevitable.
Meanwhile, the number of medium and large investors in Ethereum is growing. According to Glassnode data, the amount of addresses holding more than 100 ETH and more than 10,000 ETH reached an 18-month high and a 4-month high, respectively.
Could there be issues with Ethereum Merge?
As excitement mounts for the highly anticipated Ethereum network upgrade, the community hopes for a smooth transition. Ethereum Merge could be one of the most important events of 2022. However, for Merge to be successful, the ecosystem has some issues to deal with. On the other hand, Ethereum investors have no role to play in technical change. However, it really helps a lot.
The crypto community has been speculating lately that Ethereum Merge will most likely be a successful event. Some influencers say the pass has a 10% chance of encountering obstacles. Similarly, Kristin Smith, executive director of the Blockchain Association, sees minor issues as likely. Speaking to CNBC, Smith notes that Merge will likely be successful:
For the most part, I think it will be successful. But I’m sure there will be minor issues that need to be resolved. More ETH will need to be locked to run the network’s operations.
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