Ethereum’s network is getting closer to its much-anticipated software upgrade known as the Merge, having just entered a key testing step.
On Monday, Ethereum developers launched a mainnet shadow fork, stress-testing the new upcoming software. The test uncovered at least one issue, but the deployment has mostly been smooth and is considered “a huge success,” Ethereum developer Marius Van Der Wijden mentions in a Tweet.
What is The Merge?
It’s important to remember that initially, the Beacon Chain shipped separately from Mainnet – the chain. Ethereum Mainnet continues to remain secure by proof-of-work, even while the Beacon Chain runs in parallel using the proof-of-stake method. The Merge is when these two systems finally integrate together.
Think of Ethereum as a spaceship that isn’t quite ready for an interstellar voyage and space missions. With the Beacon Chain, the community has built a new engine so, when it’s time, the current ship will dock with this new system, merging into one ship, ready to put in some serious lightyears and take on the universe.
The test marks the latest step toward the Merge, the software upgrade that will change the way transactions on the Ethereum network. Currently, the so-called miners order transactions using giant server farms. Once The Merge happens, stakers will be assigned to validate the Ethereum Mainnet. Mining will no longer be required so miners will likely invest their earnings into staking in the new proof-of-stake system. The change is projected to cut Ethereum’s energy use by some 99%.
The shift is being monitored closely, with Ethereum the most important commercial network. ETH trails only Bitcoin in market value at around $360 billion. Decentralized finance apps with more than $108 billion in value locked with them are also dependent on the update. The testing that the Ethereum developers have been doing for months is designed to detect bugs and issues before the system is expected to go live later this year.
Will the Price Fall?
Ether price fell about 9% on Monday to below $3,000 amid a broad decline in digital-asset prices. The price as of today is up 0.70% but the merger announcement is to impact the prices in near future again.
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