The transition of Ethereum to PoS: What you need to know The second largest cryptocurrency
Ethereum (ETH) is about to undergo massive changes. The date of The Merge, that is, has been repeatedly postponed, nevertheless the transition date is already known -
September 15-16, 2022 . One of the biggest events of the crypto market is only a few weeks away, so we decided to take a closer look at this issue.
Overview This will be the first-ever transition of a serviceable blockchain under the Proof of Work algorithm to Proof of Stake. The merger is a merger of the existing Ethereum blockchain with its new Beacon Chain consensus layer. This move should upgrade the project - more scalability, security and stability .
The merger also eliminates the need for energy-intensive mining. But as expected, not everyone in the ETH community is happy with the transition, as it creates a lot of complexity for miners.
Is the Ethereum update ETH2? No, there will not be two separate Ethereum networks after the merger - there will only be one single Ethereum.
To avoid confusion in terminology, the community has updated the terms "Eth1" and "Eth2" for common understanding :
”Eth1" is now the "execution layer" that processes transactions.
”Eth2" is now the "consensus layer", which will work through the Proof of Stake mechanism.
What happens to ETH now? According to the OKLink service, miners have begun to accumulate ETH in anticipation of the transition. Their total balance has reached a three-year high of 255,000 ETH . As for the ETH rate, a change in the consensus mechanism could have a positive effect on the dynamics of the coin.
