Ethereum is making progress towards its transition from Proof of Work (PoW) consensus to Proof of Stake consensus algorithm. In an event called “merging,” the existing network and its decentralized application will start running on the latter.
Recently, ETH Core Developer Tim Beiko announce The successful launch of the beacon chain, or major point of sale network, of the longest-lived PoW test network “Ropsten”. This will help the developers launch “merge” on this testnet. The event is scheduled for June 8thThe tenth.
If successful, Ethereum and its developers could move steadily to the mainnet Merge event at some point in the coming months. The Ropsten Beacon signal chain must meet certain requirements before PoS compatibility can work, as Beiko explained:
For the merge to happen, we now need two things on Ropsten. First, its Beacon series must activate the Bellatrix upgrade, scheduled for June 2. Then, the PoW total difficulty value, which is the final total difficulty (TTD) to start the transition, will be chosen.
In this sense, Beiko has asked node validators to prepare for the upcoming move to PoS. This may be one of the biggest “merge” milestones in recent months and could provide validators with experience about what a “post-merge node” looks like.
Beacon Chain node validators will need to meet requirements to remain active on the Post Merge network, such as running fulfillment clients. PoW node validators will need to run a consensus layer client.
Beiko added the following about what could be a glimpse into the Ethereum mainnet post “merge”:
After integrating, validators receive priority fees from transactions 💸 This happens at the execution layer, so these fees are not locked onto the beacons chain. To get it, you need to set the Fee Recipient address when you start your validator.
What could change on Ethereum with the merge
This test network will not have any direct effects on Ethereum holders or users. However, ETH Ropsten miners will stop operating under the new consensus layer.
Once the mainnet completes its consolidation event, ETH miners will no longer be able to continue working with this cryptocurrency. This could lead to a short-term shockwave in the crypto space.
ETH is one of the most popular cryptocurrencies, and one of the best cryptocurrencies. The merger is probably the most exciting event in the history of this cryptocurrency.
This combination of components, a sudden shift in the system, and an upcoming event can all contribute to creating fluctuations around “merging”. In the long-term, the exodus of selling points could be a bullish catalyst for the price of ETH.
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At the time of writing, ETH is trading at $1,900 with a gain of 3% in the last 24 hours. The cryptocurrency was lagging as Bitcoin dominated the market due to increased uncertainty in the macro environment.