When Can We Expect the Ethereum POS Merge?
Bitcoin (BTC) revolutionized the market by proving that it is possible to transfer values securely without an intermediary. Yet, Ethereum (ETH) went a step further and showed that the entire internet can be decentralized. And this move created even more interest in Ethereum POS Merge options, which options platforms such as Binance and Bitlevex are going to launch.
After the resounding success of DeFi (Decentralized Finance) and NFTs (Non-Fungible Tokens), the Ethereum network must undergo a definitive upgrade that will transition between the PoW (Proof of Work) system and the PoS (Proof of Stake) system.
In this article, you will discover the expected timeline for the Ethereum POS Merge.
When Can We Expect the Ethereum POS Merge? – A General Overview
Ethereum 2.0, also known as ETH2 or “Serenity,” is an upgrade of the Ethereum blockchain. This much-welcome update aims to improve the speed, efficiency, and scalability of the network so that it can process more transactions in less time.
Ethereum 2.0 will also mark the change from the proof-of-work (PoW) protocol to proof-of-stake (PoS). The first phase, called “Beacon Chain,” went live in December 2020.
This phase brought staking to the Ethereum blockchain, which will later be responsible for the switch to the PoS protocol. Although it is a phase of the Ethereum upgrade, Beacon Chain is a blockchain apart from the main network.
The second phase, titled “The Merge,” is expected to take place in the first or second quarter of 2022, and will merge the Beacon Chain with the Ethereum mainnet.
Shard Chains are expected to take place in 2022, but it is not yet known when. In this sense, one of the main reasons behind the upgrade is the scalability of Ethereum.
Ethereum 1.0, the network supports a maximum of 30 transactions per second, which causes congestion and delays. However, Ethereum 2.0 promises the network to process 100,000 transactions per second, which will be achieved after the implementation of shard chains.
Understanding the Context Around Ethereum’s 2.0 Merge
For many experts, the launch of Ethereum 2.0 is exactly what the Ethereum blockchain needs most right now. According to Decrypt, with greater scalability, the network will have greater demand, which, at least in theory, should drive the price of ether (ETH) to new levels.
Furthermore, with expectations of lower gas rates expected “a long-term bullish impact on the price of ETH – despite the short-term volatility, which is part of crypto-asset valuations,” said Matt Cutler, Blocknative CEO.
On December 20, 2021, Ethereum developers announced the launch of the “Kintsugi” testnet; as a preparation mode before the implementation of “The Merge”. The test network was developed to simulate how the network will work after switching to PoS.
Kintsugi, a Japanese word that means to repair broken objects with gold; is open not only to developers already familiar with the network but also to the general public.
Tim Beiko, who coordinates the main developers of the network; stated that the Ethereum Foundation encourages the community to use Kintsugi; so that they can become familiar with the context of the network after the implementation of “The Merge” phase.
When Will Ethereum’s 2.0 Take Place? – Final Thoughts
Currently, the expected timeline for Ethereum’s 2.0 Merge will take place in the first quarter of 2022. While the Merge is limited in terms of solving the issue with high network fees; it will upgrade Ethereum’s consensus mechanism.
Virtually, the process will affect the current user experience of Ethereum. However, the process will introduce the foundation to future updates; that will directly help to solve the network fee problem (i.e., sharding).
Ultimately, considering PoS nodes are estimated to be 99% more efficient PoW nodes; the transition will be a milestone towards the optimized energy efficiency of the blockchain landscape.