On Monday (August 22), blockchain technology company ConsenSys said that there are still five common misconceptions about Ethereum’s upcoming “Merge” upgrade, which marks the transition from proof-of-work (PoW) to proof-of-stake (PoS).
Here is how ConsenSys describes what it does:
“ConsenSys is the leading Ethereum software company. We enable developers, enterprises, and people worldwide to build next-generation applications, launch modern financial infrastructure, and access the decentralized web. Our product suite, composed of Infura, Quorum, Truffle, Codefi, MetaMask, and Diligence, serves millions of users, supports billions of blockchain-based queries for our clients, and has handled billions of dollars in digital assets. Ethereum is the largest programmable blockchain in the world, leading in business adoption, developer community, and DeFi activity. On this trusted, open source foundation, we are building the digital economy of tomorrow.“
Here is how Ethereum Foundation explains the Merge, which is expected to take place on September 15:
“The Merge represents the joining of the existing execution layer of Ethereum (the Mainnet we use today) with its new proof-of-stake consensus layer, the Beacon Chain. It eliminates the need for energy-intensive mining and instead secures the network using staked ETH. A truly exciting step in realizing the Ethereum vision – more scalability, security, and sustainability.
“It’s important to remember that initially, the Beacon Chain shipped separately from Mainnet. Ethereum Mainnet – with all it’s accounts, balances, smart contracts, and blockchain state – continues to be secured by proof-of-work, even while the Beacon Chain runs in parallel using proof-of-stake. The approaching Merge is when these two systems finally come together, and proof-of-work is replaced permanently by proof-of-stake.
“Let’s consider an analogy. Imagine Ethereum is a spaceship that isn’t quite ready for an interstellar voyage. With the Beacon Chain, the community has built a new engine and a hardened hull. After significant testing, it’s almost time to hot-swap the new engine for the old mid-flight. This will merge the new, more efficient engine into the existing ship, ready to put in some serious lightyears and take on the universe.“
Yesterday, ConsenSys took to Twitter to highlight the five most common misconceptions about the Merge upgrade:
- “The Merge will create another Blockchain, called ETH2. The Merge will not create a new blockchain, but will make the current ETH network more energy efficient, secure, and in the future, more scalable.“
- “The Merge will create a new ETH token, ETH2. There is no ETH2 token. Avoid sending ETH to anyone in attempts to upgrade to ETH2.“
- “ETH Transactions Will Cost Less Post Merge. The Merge does not target gas fees, it is aimed at making the network more secure and easier to scale.“
- “Validators Will Be Able to Immediately Withdraw their staked ETH. It is estimated,that validatiors will be able to take out their staked ETH in 6-12 months post Merge.“
- “The Merge Will Hamper the Security of the ETH Network. The Merge will enhance the security of ETH by democratizing network participation.“
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