The next steps of the Ethereum 2.0 upgrade roadmap are just around the corner, with the highly-anticipated “The Merge” upgrade set to happen this September, which will complete Ethereum’s transition to a Proof of Stake consensus mechanism. To make sure Bitazzans are up to date with Ethereum’s multi-phased upgrade plans, here are three reasons why Ethereum 2.0 “The Merge” should matter to you!
The most significant upgrade in Ethereum’s history!
- The Beacon Chain went live on December 1, 2020.
- The Merge is when the Ethereum Mainnet hot-swaps its consensus from Proof of Work to the Beacon Chain’s Proof of Stake, which is anticipated to happen next month.
- Sharding will follow “The Merge” in multiple phases, tentatively beginning sometime in 2023-2024.
The biggest challenge for ETH 2.0 is to overcome the Blockchain trilemma;
- Decentralization: Proof of Stake (PoS) lowers the barrier to participating in the network by staking ETH. The minimum staking requirement for Ethereum validators is 32 ETH
- Security: Proof of Stake (PoS) is a consensus mechanism for processing and validating transactions and creating new blocks in a blockchain. It helps blockchains achieve distributed consensus and remain secure.
- Scalability: Sharding will make Ethereum more scalable by increasing transactions per second up to 100k TPS while decreasing the power needed to run a node and validate the chain.
Transition to Ethereum 2.0
“The Merge” is intended to shift the Ethereum blockchain from its current Proof of work (PoW) consensus mechanism that allows miners to compete for rewards based on the amount of computational power they can accrue to a Proof of stake (PoS) mechanism that is designed to be faster and more energy efficient by randomly selecting validators and rewarding them relative to the total amount and time their Ether (ETH) has been staked.
“The Merge” will be finished in mid-September 2022* when the current Proof of work (PoW) Ethereum Mainnet protocol merges with the Beacon Chain Proof of stake (PoS) consensus layer with the Ethereum Mainnet continuing on as a PoS blockchain.
*The Merge will be activated at a Terminal Total Difficulty (TTD) of 58,750,000,000,000,000,000,000, which is predicted to happen around 15 September 2022, though the exact time and date will depend on hashrate of the network.