Ethereum News

Ethereum Merge Coming in August ‘If Everything Goes to Plan’: Core Dev

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If developers can complete the merge to proof of stake in August, they won’t have to worry about defusing the “difficulty bomb” that is about to go off.

Ethereum core developer Preston Van Loon told a panel at the Permissionless conference that there’s momentum behind finalizing the move in the next three months.

“As far as we know, if everything goes to plan, August—it just makes sense,” said Van Loon. “If we don’t have to move [the difficulty bomb], let’s do it as soon as we can.”

Ethereum Foundation Justin Drake, also on the panel, noted there’s a “strong desire to make this happen before [the] difficulty bomb in August,” according to a tweet from event co-sponsor Bankless.

PRESS RELEASE

Van Loon and Drake were referring to an event called The Merge. It’s when the current Ethereum blockchain merges with the proof-of-stake beacon chain. That move will shift the network from mining—where people run powerful computers for the chance to earn ETH—to staking, in which Ethereum holders can deposit their ETH in exchange for rewards.

August isn’t a random date. In early May, Ethereum core developers decided not to upgrade the network to delay the so-called “difficulty bomb,” which will soon start to degrade the network. It’s an element encoded within the blockchain that intentionally slows down the network. The intention behind it was to both encourage developers to push forward with proof of stake and make it difficult for miners to stay behind on the proof-of-work chain after the switch. Core developers this month decided not to divert their attention away from The Merge, which is currently in the testing phase. Its completion would negate the need to defuse the difficulty bomb.

While both proof of work and proof of stake help keep the network secure and decentralized, proof of stake has several added benefits. Aside from using much less energy, proof-of-stake consensus should also make it easier to participate in running the network—enabling further decentralization and increasing security.

But the real reason many are waiting for The Merge is because it’s expected to cut the issuance of ETH by about 90%. Less ETH in circulation means, of course, less supply and higher demand, which should push the price of the coin up. As of today, 1 ETH is going for $2,000, according to data from CoinMarketCap. The most optimistic of Ethereum bulls think The Merge could take the asset’s price back over its all-time high of $4,891, set in November 2021. Read More at DECRYPTCryptoDispatch® - DECENTRALIZED FREEDOM!


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