D-Day, the biggest crypto upgrade in history. What if the Merge fails?
We are fast approaching The Merge, the most spectacular upgrade in Ethereum's history and a crucial turning point for the wider crypto industry. As the Ethereum blockchain transitions from proof-of-work (PoW) to proof-of-stake (PoS), The Merge is expected to be the foundation upon which Ethereum's scalability improvements are built. But will ETH become truly deflationary after the merger?
The Merge - the biggest upgrade in Ethereum's history.
The long-awaited launch of The Merge is finally happening and the Ethereum $ETHUSD+2.0% community is full of anticipation. This upgrade signals the transition for the Ethereum mainnet from a PoW to a PoS consensus mechanism and is sure to have a domino effect throughout the crypto space. With so many different opinions flying around, it's hard to predict exactly what will happen when Merge is implemented, but one thing is for sure - this is a major event in the history of Ethereum and cryptocurrencies and everyone will be watching closely to see how it unfolds.
The Merge has been six years in the making and is considered by many to be a milestone in cryptocurrency history due to the potential material and philosophical implications. This milestone could also boost market confidence and provide much needed optimism after months of market volatility, inflation and rising interest rates, among other factors. As one commentator put it, Ethereum's Merge "will prove that a decentralized, permissionless network can operate in an energy-efficient manner." Moreover, such a merger is an incredibly rare event in cryptocurrencies and may never happen again.
Support from Google
Tech giant Google has added a new countdown timer to mark the time remaining until the upcoming Ethereum merger as a show of support. When you type any variation of "Ethereum Merge" or "The Merge" into the search engine, a countdown ticker will appear with the expected time remaining until the merge based on the current difficulty, merge difficulty, and hash rate.
On the side, a cartoon of two happy pandas running towards each other with their arms outstretched is shown, presumably getting closer as the merge date approaches.
ETH has been one of the best performers on the crypto market in recent weeks as sentiment around the token has boosted its price. Although the broader market has seen a slight move down recently, ETH has held its ground and continues to impress investors.
As the Ethereum network prepares to merge with Ethereum 2.0, investors expect the price of ETH to increase even further. As preparations and upgrades are nearly complete, the Ethereum network is poised for even more growth and success. Investors should keep an eye on ETH as the price is expected to continue to rise, but BUY RUMMOR, SELL THE NEWS should be taken into consideration .
What does The Merge mean for ETH?
The move from PoW to PoS will affect the rate of ETH issuance.
Currently, Ethereum PoW and Ethereum PoS operate in parallel, which means there are two sources of ETH: miner rewards in the Ethereum PoW chain and validator rewards in the Ethereum PoS chain. After the merger, only Ethereum PoS will work , eliminating the rewards for miners. Validator rewards will remain the only source of Ethereum issuance.
What will happen immediately after The Merge?
Upon completion, the already running Beacon Chain will take over the process of validating new transactions via Proof-of-Stake and the old Ethereum Proof-of-Work model will be permanently shelved. As the mainnet (the main network of the Ethereum blockchain) merges with the Beacon Chain, the full transaction history of Ethereum will also merge, including every transaction, smart contract and balance since July 2015.
What if the Merge fails?
The likelihood of the Ethereum Merge failing is almost zero but the recent failure of Luna has shaken the confidence of all crypto believers. The big Ethereum update therefore leaves the question, what if the anticipated Ethereum merge fails?
If the Ethereum merger fails or is delayed, who will benefit? The bigger debate is about the cause and effect model. For Ethereum, however, there is one such scenario that may cause a problem. Ethereum's consensus model will now depend on validators via proof of stake instead of miners. If 2/3 of all validators somehow bug out, honest validators could be in trouble. This will leave Ethereum vulnerable to hostile transactions until the kernel developers figure it out and assess the damage.
Ethereum has limited scalability. It can only process 12 to 15 transactions per second, which is very low given Ethereum's traffic. Hence the huge gas charges. To solve this problem, Layer 2 projects such as Polygon work, which process transactions separately as a protocol and add those back to the main Ethereum network. Since the current Ethereum merger will increase the scalability of the mainnet, this has halted the development of layer 2. If the Ethereum merger fails, the backup phase of layer 2 development will also resume
.The price of Ethereum may exhibit incredible volatility on both sides in the coming hours, most likely a bearish move. Still, let's hope all goes well.
Gareth Soloway also commented on the developments after this event in connection with the price, and he is quite pessimistic.
So what is the Solway price forecast for 31 December 2022? "I would say it will be $1,000."
In the long term, however, Soloway has a different prediction.
"I think five years from now you could easily be looking at $20,000 for Ethereum. Again, I think the next few years are going to be a difficult period for all cryptocurrencies, especially Ethereum.
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