One of the most relevant changes to date in the universe of cryptoeconomics is imminent. In the next few hours, the long-awaited merger of Ethereum will be completed. and the mechanism for supporting the functioning of the second most popular and relevant digital currency on the market is changing a lot.

Through this merger, known as The Merge, blockchain Ethereum will no longer operate on a proof-of-work model in order to operate on a proof-of-stake model.. The latter has been tested over the past few years on a separate blockchain (Beacon) from the one that supported the currency (mainnet). Both are now going to merge. There are many doubts about the results of the operation.

O success is not 100% guaranteedthere is also no certainty that the value of the token will strengthen or that an “alternative” Ethereum will not be born from here, which will twist the value of the original, but there were not enough tests until the last step and there are also many possible advantages.

How does Ethereum work today?

In the current model (proof of work), which is also used with bitcoin, the processing power of each “miner” or miner is critical to solving the puzzle, verifying the transaction, and earning the reward. Everyone can work on the same complex equations, and whoever solves them first wins.. The reward is given out in the currency generated by validating new blocks. In Ethereum, two coins were earned for each confirmed block (about 3,200 euros at the current price) plus fees associated with transactions made by users. In bitcoin, the reward is above 6.25 bitcoin for validation.

How will the new model work?

O proof of stake changes the transaction verification model and adds new blocks to the ether blockchain. There is now a random selection process that decides who will validate the next block in the blockchain.. To be eligible, you must have at least 32 Ether. This new rule is a form of guarantee that the system is starting to accept. This is called staking to lock up the required funds, which will serve as a safety margin in case the task is not executed correctly.

Will the new way to “produce” Ethereum consume more or less electricity?

The most immediate and most important change of this algorithm change lies precisely in the consumption of energy required to check the ethers. The electricity required to run the ecosystem is expected to drop by around 99% as mining no longer generates rewards and keeping thousands of machines around the world competing for the fastest block validation at the same time no longer makes sense.

Today, the carbon footprint associated with Ethereum mining is estimated at the level of cities like Singapore. and that the energy consumption of this activity is equivalent to that of Switzerland with nine million inhabitants. With Bitcoin, the numbers are even scarier. The 150 terawatt-hours spent annually mining bitcoin is more than enough to power a country like Argentina with a population of 45 million.

Are there other changes planned?

Other Eterhum limits are expected to change after the merger. An update planned for next year will pave the way for acceleration of the maximum number of supported transactions, which will also affect the costs associated with operations in this ecosystem. Transaction delays and costs are two problems with the current platform.

Does this change create security risks for the ecosystem?

The decision to change the essence of how the blockchain works is neither peaceful nor 100% predictable, and it may affect the success of the operation, but it is also not unconscious. In fact, it was in the plans of the creators of Ether from the very beginning (2014), but given the complexity of the process, it really only began to be prepared in 2020 and since then many tests have been carried out to minimize the likelihood that what – something goes wrong. Despite this, mistakes are a real possibility in the transition. Another widely discussed possibility is whether the new system facilitates or hinders potential attacks.

As John Charbonneau, an analyst at Delphi Digital, explained to News.com, in the current model for attacking Ethereum, someone needs to be able to control 51% of the network., that is, how to say, its computing power, distributed by thousands of machines around the world. This has never happened and is unlikely to happen due to the scale and cost of such control. On the other hand, the same source recalls that the capture system associated with the new Ethereum model would also allow direct financial consequences to be attributed to anyone who tries to attack the network..

Is the succession of Ethereum guaranteed?

The possibility of those dissatisfied with the concentration of the new Ethereum operating system in the validator pool, to create a kind of alternative to Ethereum exist. There is even information pointing to this type of movement already underway, but this attempt is not expected to succeed much, let alone that the alternative succeeds in relation to the original. For a currency to have value, there must be an entire ecosystem moving it, and it is unlikely that Ethereum-based investors and platforms would choose to follow the unofficial version.

What will happen to the merger?

The merger is completed with two major updates. The first one has already been released and affected Beacon. The second is not far off. This will affect the Ethereum execution layer (proof of work) and will be caused by the activation of the algorithm variable during its normal workflow.
It is expected that after the update, all applications and services based on the blockchain will work normally.already compatible with the new definitions. In order for this to be the case, many tests were carried out before D-Day. One of the most important elements of the change is, for example, the correct updating of the various programs used by the validators so that there is a sufficient pool of these participants to continue validating blocks.

Will Ethereum cost more?

The answer is not closed. It all depends from the very beginning on how the process of updating the blockchain will go. Further forward. There are those who think that this the new “green” version of ether will attract many investors, which were far away from this market due to the environmental impact of the mining industry. There are also those who argue that changing the block validation logic will reduce the pressure to buy and sell the currency, which, associated with the expected improvements in the ability to process transactions, will have a positive impact on the exchange rate.

Watch the video posted by the Ethereum Foundation where these and other questions about the merger are explained in detail.