Ethereum Merge is now triggered and long awaited ETH 2.0 is now live. From today, Etheruem will be following PROOF OF STAKE consensus mechanism.
In other words, Ethereum is now running on proof-of-stake consensus mechanism from Proof of work. The Merge, otherwise known as the transition from POW to POS would first be activated on the Beacon chain with Bellatrix upgrade, post which the all operations would migrate from POW chain to POS chain.
And we finalized!
Happy merge all. This is a big moment for the Ethereum ecosystem. Everyone who helped make the merge happen should feel very proud today.
— vitalik.eth (@VitalikButerin) September 15, 2022
Merge was be a 2 step process that started with Bellatrix upgrade on 6th of September, and will completed with Paris upgrade.
As an Ethereum holder, you are not needed to do anything. If you are holding your Ethereum on any exchange, or on chain, or in your private wallet, there is no need to make any changes, unless there are any specific instruction from the service provider. Scammers may try to take advantage of this opportunity, so take every precautions and do not click on anything suspicious.
If you are mining Ethereum, after the Merge event, you will not be able to mine Ethereum anymore.
For validators who wants to withdraw their staked Ethereum, will still have to wait till the first upgrade post Merge event. For now, you can’t withdraw your staked ETH.
With this Merge event, Ethereum is going green. A lot of energy that was used in the mining of Ethereum can now be saved.
A post by Vitalik today suggested 0.2% of the world’s electricity will be saved, as ETH moved to POS.
"The merge will reduce worldwide electricity consumption by 0.2%" – @drakefjustin
— vitalik.eth (@VitalikButerin) September 15, 2022
If you are wondering what will be the effect of the Merge event on Ethereum price, we think, ETH could see a RISE in the price.
On 5th of October, ETH is trading at 1356USD.
However, this is just a speculation. Please DYOR before taking any call, and do not consider any of this as a financial advice. Personally I will wait for ETH to cross 2100USD before taking any new position.
Do share with us in comments what you think will happen to Ethereum price post the Merge event?
Some investors speculated that a part of the community will not accept Ethereum moving from POW to POS consensus, and create a FORK. While any concrete info about the FORK is not out yet, but if that happens, those holding ETH in their wallet will get a new token. We are now in a wait and watch mode.
Last updated: 5th October, 2022
