The Merge is here. What’s next?

So the long-awaited The Merge is here. The second cryptocurrency has finally switched to the Proof of Stake algorithm. How will this event affect the industry and what results can be seen already now? We asked the speakers of Blockchain Life.

Valentin Medny, representative of Distributed Validators Synctems

The fact that Ethereum has successfully switched to Proof Of Stake is good. Not everyone believed that this would actually happen in 2022. The transition clearly showed the viability and extremely high level of knowledge of the developers. But the work is not finished yet! We expect sharding in 2023-2024, which will allow us to reduce fees, increase throughput, etc.

There is work to be done in terms of decentralization. Developers are looking for solutions to distribute Ethereum to more network participants.

The Merge and Proof-Of-Stake in Ethereum is just the beginning of a powerful milestone in the history of blockchain, which is being written by the best enthusiastic developers around the World!

Roman Kaufman, Co-founder of BerezkaDAO, Weezi.io

Results of the main event of the year:

• Switching from Proof-of-Work to Proof-of-Stake
• 99.95% reduction in power consumption required to maintain the protocol

• A number of technological changes have been launched to scale the Ethereum network and switch to full-fledged Danksharding.
• ETH supply is near 0.18% and is preparing to become deflationary

• Projected combustion will be 2,273,000 ETH per year, emission itself is planned to decrease to -1.36%

• Merge took place professionally and without fatal errors

What will happen next?

The next set of improvements will run in parallel: The Surge, The Verge, The Purge, and Splurge.

But first, it is worth paying attention to the major Shanghai update, which will have EIP-4895, which will allow you to withdraw assets from ETH 2.0.

It is very important to note that EIP-4895 will allow validators to withdraw assets without gas. The beacon chain will send information to the EVM (Ethereum Virtual Machine) – this means that validators can initiate the withdrawal of funds from the beacon chain and include them directly in blocks other than regular transactions.

In general, the Ethereum network is becoming more scalable for high-load tasks. Everything goes gradually and with each update, ETH moves further from its competitors.

Vitaly Fedorov, Founder of Oracle Labs, blockchain evangelist, Chainlink Advocate Rus

The Merge (“Merge”) – the transition of the Ethereum network from the PoW consensus mechanism to PoS, especially today, in a period of high cost and volatility of energy resources, was essential for the further development of smart contracts and blockchain technology.

Ethereum on Proof of Stake reduced electricity consumption in the network by 99%, and also, according to Vitalik Buterin, reduced global electricity costs by 0.2%.

Leading protocols, decentralized oracle networks and developers have already stated that they will only support the PoS network, which at least indicates the futility of a PoW fork for areas such as DeFi, GameFi, NFT in the medium and long term.

Yes, there are questions about the decentralization of the network, but the fact that this long-awaited (since 2008/2009) transition nevertheless took place and was technically successful is already very good for the industry.

In terms of Eth2 competing with other L1/L2 blockchain networks and fighting for new markets, it will certainly continue. But the reputation after the “Merger” was not affected and projects with large TVL will continue to rely on Ethereum PoS as the most reliable network.

It is also clear that we are entering the era of “multichain” systems. The future lies with Dapps decentralized applications that will use smart contracts on different blockchains for different tasks at the same time, coupled with decentralized off-chain logic, external data and oracle calculations to create products that will quickly come into our daily user lives and change many established spheres.

A new milestone in the history of the industry begins! Join her on the Blockchain Life Forum in Dubai!

https://blockchain-life.com/asia/en/#tickets-row