'Merge' is not a topic you get to see regularly, nor is it something people who buy Ethereum are too familiar with. Ethereum is computer software that provides a digital ledger using blockchain technology. It has become the best way to grow many crypto applications and assets used for commercial purposes, including NFTs, native tokens, and lending products. Unlike the popular belief that an individual owns Ethereum, Ethereum is not owned by anyone but managed by a group of developers.
It is also designed to run through data network centers around the world. These data centers work with miners on the Ethereum network; hence, they are responsible for ordering different transactions posted to the ledger. The reward for the task is Ether, as in, they get paid in Ether. This system is so efficient that it has been termed a "proof of work." Experts predict that Ethereum will be making one of its biggest moves anytime this year, a success largely attributed to those who buy Ethereum.
Buy Ethereum; Buy the Future
Cryptocurrency experts say that the change coming to the Ethereum network will be the biggest change Ethereum has ever made in its almost ten years of existence. This move is said to change the whole cryptocurrency ecosystem. Developers who refine the Ethereum software launch periodic updates, but none will perform more than the anticipated event this year. A system known as "the merge" is expected to replace the previous one, known as the "stakers." Miners book transactions by solving huge calculations that use millions of strong servers. These servers have been criticized for consuming a heavy amount of electric energy over the years.
After you are done with the merge, they will automatically start selecting randomly to form what they call vibrators, thus, ordering transactions on the Ethereum ledger, transforming them into blocks, and getting paid with the new Ether as a reward. This process is called a "proof of stake," It is completely strange to those who buy Ethereum for keeps.
The Merge and the Role it Plays in Ethereum Market
The Ethereum market currently has a $415.3 billion capitalization (of which those who buy Ethereum contributed to most of this progress). Still, the stability of this number depends on how smooth the merge is. The same applies to thousands of businesses and users that operate on the blockchain. When we say users, we refer to people who either buy Ethereum for some transaction or trade on it on a normal day. Some industry experts believe that there are $121.5 billion in capital funds locked out somewhere in Ethereum's decentralized finance (Defi) platform.
Again, the total values are also calculated in billions of Ethereum. You also have to understand that this is the first time in the blockchain network that a slight change will affect the Ethereum scale, a situation that compels it to transition from proof of work to proof of stake. There is a greater possibility that the merge will be a point of attention, just if things go wrong. When we say "go wrong," we mean in the case of hacks or software bugs – there are even situations where miners can develop a second Ethereum network.
A typical example of this situation is the 2020 network update. At this time, a bug was reported to have split the Ethereum into two, a situation that caused so much havoc on some Defi trading space. As a precaution, all crypto exchanges with a centralized database are expected to hold on to their Ether deposits and withdrawals on the Merge. Even those affected Defi platforms may also halt should anything go wrong. Because of this past event, experts in the field have warned that users should be careful on these large chains, especially with all the technical updates going on.
What Miners Need to Know about the Merge
Miners are responsible for the unnecessary worries that are often associated with Merge. In most cases, many of them give up on the network even before the merge. This often happens when they realize they can earn more money selling gear than just waiting to get rewarded. Too many steps in the network mining power can make the Ethereum security weak, thereby wrecking different apps that use the network and its tokens.
If you are among those that buy Ethereum mostly for keeps, note that In the case of stakers, it orders transactions by initiating individual Ether in the new network. Stakers, on the other hand, orders transactions through its Ether in an entirely new system, although it has been in constant testing since 2020. Also, people who buy Ethereum either for keeps or for normal trading can use any crypto wallet of their choice to stake the Ether on a test system called "the Beacon Chain."