The hot topic for the last few weeks in crypto has been the ETH merge. Now we know that there are a lot of people that own crypto without staying up to date with the latest news or knowing all the more complex technical details. So this article is for all you people. A simplified article explaining what to expect and how to prepare for the merge.
The merge is expected to start on the 15th of September. So what is the merger and why is ETH merging?
The merge is a migration of the ETH network from a Proof of Work to a Proof of Stake system. In simple terms, no more ETH mining, instead, ETH staking. The migration should lead to more centralization, less electricity consumption and more security as well. For more information on Proof of Work VS Proof of Stake, I recommend the following article: https://www.bitdegree.org/crypto/tutorials/proof-of-work-vs-proof-of-stake#proof-of-work-vs-proof-of-stake-the-conclusion
So for all of you eth holders, is there anything you need to prepare?
The first preparation and recommendation is to transfer all your ETH from exchange platforms to a personal wallet. The exchange platforms will halt ETH withdrawals and trading for a while to implement the new ETH systems. This is a recommendation for all of you that want to maintain full control of your assets at all times (like myself). Most exchange platforms will deal with the merge professionally, but just to be 100% sure, I would personally remove the ETH from exchange platforms, especially smaller platforms. Binance and Coinbase are 2 examples of reliable exchanges that will not mess around with your funds.
This event is highly anticipated and there will be people that try to take advantage of the merge to try and scam you. So be aware! Do not send your tokens to someone saying they will “upgrade your ETH to ETH 2.0”. Be very cautious and maintain control of your funds.
There are no further preparations necessary for ETH holders, your ETH will be transformed into ETH 2.0 and you can go to the ETH website to choose your type of staking and start raking in your rewards :D.
For ETH miners, it makes sense to start mining a different crypto. As once the merge is done, there will be no more ETH mining. Ethereum classic will still be around though, with the same proof of work blockchain, so that can be mined if you would like. There are also some miners talking about forking a version of the ethereum blockchain to continue mining, but it’s hard to say if that will be popular.
So what can we expect from the ETH merge?
Reduction in fees? Probably not. Increased transaction speed? Slightly, but not enough to really notice. Ethereum pump? Hard to say, depends on how the merge goes and how it is received by the community, but probably not.
So wait, why are we merging again? The Merge will reduce ETH's energy consumption by ~99.95%. That is right, ethereum is trying to become a more environmentally friendly network by reducing their energy consumption by more than 99%.
For all of you with ETH, good luck, stay safe and enjoy your future rewards with ethereum staking 😄
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