1. What is “The merge”:
In simple words it means: Moving Ethereum network from proof of work (PoW) concept to proof of stake (PoS) concept through a merging of two blockchains.
The two blockchains which are going to be merged are:
- Mainnet blockchain
- Beacon blockchain
2. Two types of system:
The ethereum blockchain that individuals use is known as “mainnet,” as recognized differently from the “testnet” blockchains that are utilized simply by designers. In December 2020, ethereum engineers made another chain called the beacon chain. The beacon chain is basically the new ethereum.
The beacon chain is a proof-of-stake chain that has been moving ahead in disconnection since its creation year and a half ago. Validators have been adding blocks to the chain, however these blocks have contained no information or exchanges. Fundamentally, it’s been put under different stress tests in front of the much anticipated day.
The Merge will see the data and information held on ethereum’s mainnet moved to the beacon chain, which will then, at that point, become the prime blockchain on ethereum’s organization. In the anticipation of the Merge, ethereum designers have been stress testing the new blockchain by running information and exchanges through it on different ethereum testnets.
3. Proof of stake vs Proof of work difference
Mainnet works on proof of work concept. In this the new blocks on blockchain are created after miners have solved a complex puzzle. This is an extremely energy intensive process and hence PoW model has been criticized for being environmental unfriendly. In today’s world when there is too much focus on fighting climate change, PoW system is unsustainable in long run.
Proof of stake is a sort of agreement method used to approve digital currency exchanges. With this framework, holders of cryptocurrency can stake their coins, which gives them the option to really take a look at new blocks of exchanges and add them to the blockchain.
This strategy is an alternative to proof of work, the primary agreement instrument used for cryptocurrencies. Since proof of stake is substantially more energy-productive, it has gotten more well known as consideration has gone to how crypto mining badly influences the environment and climate.
