What Are The Right Known Mistakes About Ethereum Merge? Here are Urban Legends and Facts!

Ethereum The transformation of its blockchain from Proof of Work to Proof of Stake is expected to take place on September 15. The result of years of hard work will soon bear fruit and is the second largest by market value. cryptocurrency will change forever.

Such a complex blockchain upgrade comes with some risks. However, the majority of the crypto world is currently optimistic about the success of the upgrade.

Currently, there are still some misunderstandings about the ETH Merge event in the cryptocurrency world. Here are 5 common misconceptions.

Before you start reading the article, the following “What is Ethereum Merge? We strongly recommend that you read the article.

Myth 1: “Ethereum Transaction Fees Will Decrease”

One of the biggest misconceptions about Merge is that ETH’s scaling problem will be solved overnight with merger. However, this is not true.

Ethereum Merge will not immediately solve the problem of high transaction costs. Initially, ETH Merge will only replace the consensus mechanism of the ETH Blockchain.

But Mergegg is paving the way for a host of other upgrades (Surge, Verge, Purge, Splurge) aimed at solving the scaling issue in the coming years.

But what is likely to change soon after Merge is that Ethereum Layer 2 scaling solutions will become cheaper.

Myth 2: “Stakers Will Sell ETH Assets Immediately After Merge”

Although the ETH Merge update will be made in September, ETH staking, that is, locking, started long before that.

Currently, more than 13.38 million ETH has been staked, worth just under $22 billion. Currently, these are not transferable, meaning that the total ETH supply is inevitably reduced.

Many investors have a fear that as soon as there is a Merge update, these locks will be unlocked and these ETHs, which were locked in the system months or even years ago, will be released.

Ethereum stakers will not be able to sell their ETH holdings immediately after the Merge. Stakers will only be able to access their ETH 6 to 12 weeks after the upgrade. The Ethereum development team deliberately took this precaution to avoid a sudden sell-off.

Known Fact 3: “Merge Will Never Happen”

Another ongoing argument from many ETH critics in recent years is that the Ethereum Merge will never happen. However, this argument is also dated with the introduction of the latest Ethereum Bellatrix update the other day.

The Bellatrix upgrade corresponds to the first stage of Merge and initiates the upgrade on the Beacon Chain (Ethereum Proof of Stake Chain). As of yesterday, Bellatrix is ​​now complete and will go into effect on September 6.

After that, the second phase of the Merge upgrade, Paris will convert the existing Ethereum Poof of Work (PoW) Blockchain into Proof of Stake from September 10-20.

ETH developers have already set the exact date on the Ethereum Blockchain. Ultimately, however, this date depends on how fast miners are extracting blocks from the current Proof of Work chain. So there is no obstacle in front of Merge.

Myth 4: “Ethereum Miners Will Revolutionize ETH”

The upgrade will change the consensus mechanism of the Ethereum Blockchain from Proof of Work (PoW) to Proof of Stake (PoS). Simply put, the ETH network will be powered by investors and their capital in Ethereum in the future, rather than miners.

Thus, validators instead of miners will confirm transactions, process them in blocks and add them to the ETH Blockchain.

To the detriment of many ETH miners, this will spell the end of a multi-billion dollar industry. For this reason, some investors are worried that miners will try to manipulate the ETH blockchain to avoid Merge.

However, this concern is unfounded. Merge date is fixed and miners have almost no chance to change it. Technically, Ethereum developers decided to use what is called Terminal Total Difficulty (TTD) instead of a specific block number to initiate Merge.

As a result, miners cannot manipulate the Merge timing to gain an advantage. The only option they have to effect the merge is to shut down their machine, but that would mean giving up any remaining mining rewards.

Moreover, the largest Ethereum mining pool has already announced that it will switch to Proof of Stake. Therefore, it is unlikely that miners will affect the merger on a large scale.

Myth 5: “DeFi Apps Will No Longer Work”

Another issue of major concern to the DeFi community is the concern of a collapse in the DeFi industry. As hundreds of DeFi records are copied to the new Proof of Stake chain during the merge, some investors are concerned that issues may arise during this process.

But technically, Merge simply means that block validators have decided to create a new block based on a different consensus mechanism (Proof of Stake).

This code change only affects the Ethereum protocol and does not apply to individual applications. Both Layer 2 blockchains and DeFi protocols are in no way affected by Merge in terms of their functionality.

*Not investment advice.