Robert Steinadler, 9 months ago
The Merge is the event in 2022 and the Ethereum community is more than excited for it to commence. Many hopes and dreams as well as fears are attached to the Merge. While some believe that proof of stake will put Ethereum into a pole position others fear that anything could go wrong from a technical perspective and threaten the Ethereum blockchain.
Just a few hours ago the Bellatrix upgrade was shipped to the beacon chain. What is Bellatrix and when are we going to witness the full transition?
The Merge is effectively changing two blockchains but not at the same time. The beacon is already running the proof of stake consensus layer and the actual Ethereum blockchain will become the execution layer.
Bellatrix is named after the Harry Potter character Bellatrix Lestrange and was carried out on the beacon chain in order to get it prepared for the Merge.
Somewhere between September 13 – 15 the second upgrade called Paris will unfold on the execution layer. If everything is going according to plan, the Merge will activate just a few minutes after the second upgrade has been done.
Most likely, yes. There is only a very little chance that the Merge will cause problems on the Ethereum blockchain. Another concern that is discussed mostly between Ethereum developers and Bitcoiners is the impact of leaving proof of work.
Some believe that only by using energy the network, its transactions and the whole ledger can be protected. Their fear is that proof of stake could open a door for rich and individuals to take over the network and in a worst-case scenario overthrow network consensus.
On the other hand, that would require burning a large chunk of money. Only if such an individual would put up their own ETH on the line it is possible to try an attack. Why would anybody willingly devalue his own investment? It seems that both arguing parties have a point and can also underline their view by providing solid examples that entertain thoughts that involve game theory. With many other cryptocurrencies already available on the market running proof of stake as their network consensus, it might be safer to switch to proof of stake than many people believe. Still, the Merge is an event that effects the second largest blockchain in terms of market cap and the largest blockchain in terms of smart contract usage. Next week we are going to witness how this transition will play out.
May 16, 2023
Ethereum developers have come up with a simply solution against the arms races that unfold because of mempool related trading. They will simply burn the ETH that these participants collect! The effect is that Ethereum will become even more scarce/deflationary and - hopefully - valuable.
Apr 21, 2023
A saying that you hear often in any financial market is: history doesn't repeat but it often rhymes. The patterns of subsequent market cycles are never quite the same but similar. How does the current price action compare to previous bear markets? And what lies behind the price numbers?
Apr 17, 2023
Our online identity is currently managed by centralized institutions. It's either a government (log in with your social security number) but more often an e-mail provider or social media provider. Ethereum provides an alternative. Crypto wallet provider MetaMask has recently integrated this 'Sign in with Ethereum' functionality.
Apr 14, 2023
The prediction of bearish investors out there hasn't come to fruition. After yesterday's Shapella fork of Ethereum, the price didn't drop. On the contrary: the price pumped. Instead of unstaking and dumping their ETH on the market, there was quite a nice inflow of staked Ether.
Sign up to stay informed via our email updates