Quick Summary:
- Ethereum D Day is approaching and in approximately 16 hours Ethereum Merge will happen.
- Scalability and upgrade are waiting for ETH 2.0 on the other end, but what if the Ethereum merge fails?
Related: Ethereum Bug Bounty is Here Ahead of the Merge
What is Ethereum Merge?
Ethereum is attempting to change its consensus model from Proof-of-Work (PoW) to Proof-of-Stake (PoS), while analysts are predicting another fork on Ethereum. This change is going to happen due to the following key reasons:
- Limit Ethereum supply
- Decrease climate effects due to carbon emission
- Increase scalability
- Minimize the gas fees
Ethereum is undergoing this change in a multi-level approach. It has already implemented the Ethereum burn to burn a part of its gas fees to limit the supply for good. The lesser supply will help to stabilize the price against the growing Ethereum marketcap. The most critical part of the Ethereum merge is set to execute on September 14, 2022 – just a day later.
What if the Ethereum Merge Fails?
The odds of Ethereum Merge failing are almost zero but the Luna stable coin adventure has shaken the trust of all crypto believers. Therefore, the major update of Ethereum leaves a question what if the anticipated Ethereum merge fails?
If the Ethereum merge fails or is delayed, who will benefit from it? The bigger debate is on the cause-and-effect model. There’s one such scenario for Ethereum that can cause a problem though. Ethereum consensus model will now depend on the validators through proof of stake instead of miners. If 2/3 of all validators bug out in some way, the honest validators could be slashed. This will leave Ethereum security to allow the hostile transactions to take place until the core developers find out and assess the damage.
Ethereum has limited scalability. It can only process 12 to 15 transactions per second which are very low given the Ethereum traffic. This gives rise to huge gas fees. To solves this problem, layer 2 projects like Polygon work as the protocol to process the transactions separately and add those back to the Ethereum mainnet. Since the current Ethereum merge will increase the scalability of the mainnet, this has put a stop to layer 2 development. If the Ethereum merge fails, the layer 2 standby development phase will also resume.
Conclusion:
Ethereum price might show incredible volatility on either side in the coming hours, most probably a bearish move. Nonetheless, let’s hope all goes well as Ethereum has given the most incredible projects BAYC, the SandBox, and UniSwap and it continues to do so – fingers crossed.
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author: mnmansha
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
