Ethereum 2.0, a double or quits bet?  Focus on the update that could change everything

Ethereum: finally a date for The Merge – September 19, 2022 will be the right one?

The Merge increasingly concrete – The network Ethereum (ETH) is at the heart of a year full of innovations. Indeed, it is preparing to transition from proof of work to proof of stake In the coming months. In addition, the ecosystem of solutions for second layer continues to evolve and offer alternatives to the fabulous costs that can be encountered on the L1. The wait could be coming to an end with the announcement of a date for The Merge.

The Merge: the long-awaited update

For several months now, we have been discussing the hot topic of mergers, also known as “The Merge”. In fact, this update will allow the Ethereum network to change consensus modemoving from proof of work (PoW) to proof of stake (PoS).

Therefore, the minors of the network will be replaced by validator nodes. The latter must have a stake of 32 ETH to participate in securing the network.

In practice, this transition is already underway since end of 2021with the deployment of beacon chain. For information, the beacon chain is a proof of stake blockchain whose sole mission is to ensure consensus. This was launched in parallel with the Ethereum network as proof of work.

For its part, the merger will make it possible to get rid of PoW by linking the application layer of Ethereum, namely the ecosystem of decentralized applications, to the consensus layer in proof of stake.

The Merge will get rid of PoW by linking the application layer of Ethereum, namely the ecosystem of decentralized applications, to the consensus layer in proof of stake
Representation of The Merge

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An actively tested update on Ethereum

Of course, such a transition should not be taken lightly. Therefore, developers should intensively test it before deploying it on the Ethereum mainnet. Indeed, they cannot leave anything to chance.

In practice, the transition has been actively tested on various devnets, shadow forks and, finally, on the testnets history of Ethereum.

On June 8, The Merge has been successfully deployed on the Ropsten testnet, paving the way for deployment on other testnets. Ropsten was subsequently sepolia testnet trackingon which The Merge was deployed on July 6th.

Finally, The Merge will be tested one last time with its deployment on the Goerli testnet.

Finally a date for The Merge: September 19, 2022

On July 14, all the developers working on The Merge met during the 91st PoS Implementer’s Call. On this occasion, the latter agreed on a theoretical roadmap for the deployment of fusion.

Therefore, deploying the update to the Goerli testnet is planned for the August 11 next. Before that, Ethereum client developers will have to deliver a final version of their client by July 28.

If everything went smoothly, the developers would start preparing for the rollout on the mainnet. This will be done through 3 key dates:

  • August 18 : meeting of developers to plan the deployment on the mainnet;
  • Early September : publication of the Bellatrix update on the mainnet, an essential element for the deployment of The Merge;
  • September 19 : date of deployment of The Merge on the Ethereum mainnet.

Therefore, we are approximately 2 months away from the long-awaited transition to proof of stake for Ethereum. Note, however, that these dates are indicative and may change depending on the progress of the tests carried out on Goerli.

What consequences will this update have for Ethereum?

First of all, let’s get rid of a received idea that keeps coming back when we approach the subject of The Merge: the proof of stake will not allow Ethereum to scale.

You read correctly. The transition to proof of stake will have almost no impact on fees transactions observed on Ethereum. Furthermore, this transition will also not increase the number of transactions that Ethereum can process.

Now that we have touched on this subject, we can see the evolutions that this will bring.

First, the proof of stake will allow a reduction in the production of ETH with each block. This, coupled with theEIP 1559 which destroys part of the transaction fee will allow theETH to become deflationary.

Secondly, the proof of stake will allow a optimization solutions from second layer.

Third, the proof of stake will allow Ethereum to ensure the purpose of the transactions as soon as they are published. So far, in proof of stake, the finality of a transaction is ensured when several other blocks have been built on top of it. The proof of stake allows a almost immediate purpose.

Finally, the proof of stake will allow the sharding deploymentwhich is none other than the real solution of scalability which will improve the performance of layer 1 of Ethereum.

Meanwhile, the token ETH continues its reassembled. Indeed, the price of the latter has increased by 50% over the last 7 days and could well cross the bar of 1,700 dollars.

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