Top 5 misconceptions about the anticipated Ethereum upgrade

The thrill round Ethereum’s (ETH) upcoming improve, The Merge, which includes the merger of two blockchains — Mainnet Ethereum and Beacon Chain — has unknowingly spurred rumors throughout the neighborhood.

Termed probably the most vital improve within the historical past of Ethereum, The Merge does certainly mark the top of proof-of-work (PoW) for the Ethereum blockchain. Nevertheless, listed below are 5 misconceptions that stand out among the many relaxation.

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False impression 1: Ethereum fuel charges will scale back after The Merge

Ethereum’s impending improve will scale back Ethereum’s notorious fuel charges (transaction charges) is among the largest misconceptions circulating amongst traders. Whereas diminished fuel charges tops each investor’s wishlist, The Merge is a change of consensus mechanism that may transition the Ethereum blockchain from PoW to proof-of-stake (PoS).

As a substitute, decreasing fuel charges in Ethereum would require engaged on increasing the community capability and throughput. The developer neighborhood is presently engaged on a rollup-centric roadmap to make transactions cheaper.

False impression 2: Ethereum transactions might be sooner after The Merge

It’s protected to imagine that Ethereum transactions won’t be noticeably sooner. Nevertheless, there may be some reality to this rumor, as Beacon Chain permits validators to publish a block each 12 seconds, which on the Mainnet is roughly 13.3 seconds.

Whereas Ethereum builders imagine that transitioning to PoS will allow a ten% enhance in block manufacturing, the slight enchancment will go unnoticed by customers.

False impression 3: The Merge will end in downtime of the Ethereum blockchain

Contrasting the misconceptions that envision constructive outcomes for Ethereum from The Merge, a preferred rumor means that the deliberate improve will momentarily take down the Ethereum blockchain.

The builders anticipate no downtime as blocks transition from being constructed utilizing PoW to being constructed utilizing PoS.

False impression 4: Buyers will be capable of withdraw staked ETH after The Merge

Staked ETH (stETH), a cryptocurrency backed 1:1 by ETH, presently lies locked on the Beacon Chain. Whereas customers would love to have the ability to withdraw their stETH holdings, the developer neighborhood has confirmed that the improve doesn’t facilitate this modification.

Withdrawal of stETH holdings might be made obtainable throughout the subsequent main improve after The Merge, referred to as the Shanghai improve. Consequently, the property will stay locked and illiquid for at the very least 6-12 months after the merger.

False impression 5: Validators will be unable to withdraw ETH rewards til the Shanghai improve

Whereas stETH stays blocked for traders till withdrawals are resumed following the Shangai improve, validators could have fast entry to the payment rewards and maximal extractable worth (MEV) earned throughout block proposals from the execution layer or Ethereum Mainnet.

Because the payment compensation won’t be newly issued tokens, it is going to be obtainable to the validator instantly.

Associated: Ethereum will outpace Visa with zkEVM Rollups, says Polygon co-founder

Sharing his tackle Ethereum’s untapped potential, Polygon co-founder Mihailo Bjelic advised Cointelegraph that zkEVM Rollups, a brand new scaling answer for Ethereum, will enable the sensible contract protocol to outpace Visa when it comes to transaction throughput.

Sandeep Nailwal, Polygon’s different co-founder, echoed Bjelic’s ideas as he envisioned the answer slicing down Ethereum charges by 90% and growing transaction throughput to 40–50 transactions per second.