A Web3 Development DAO Reflects
Ethereum is entering a new era in which the Rinkeby and Goerli testnets will be retired and the carbon footprint of running the blockchain will be reduced by 99%+. Sell pressure on Ether from miners will decrease substantially as well. The Merge will combine the existing execution layer of Ethereum, which is the proof-of-work mainnet we know today, with its new proof-of-stake consensus layer. The proof-of-work Ethereum protocol was a consensus layer which ensured the security of the Ethereum network requiring “miners” to solve hard math problems to propose blocks. By contrast, the proof-of-stake upgrade is going to usher in a whole new era of carbon-efficient security consensus. Put simply: electricity consumption will be greatly reduced, and Ethereum will also benefit from faster transactions and markedly improved network scalability.
MERGING WITH THE MAIN NET(PoS):
The current main net can’t be stopped momentarily to allow the switch from Pow to PoS without causing the Ethereum blockchain to collapse. So, in order to avoid this, a separate consensual layer has been developed. It is called the Beacon Chain, and has been tested on each Ethereum testnet. The Beacon Chain runs parallel with the current proof-of-work Ethereum chain even as blockchain states continue to be secured by the proof-of-work until the merge, which will take the proof-of-work consensus protocol offline and replace it with the Beacon Chain entirely.
According to developers, and as seen on most recently the Goerli testnet, the Beacon Chain will be turned on without stopping block production and the whole operation should be quite seamless if it works as it did on the testnets. The Merge is intended to build a sharding mechanism that will allow the network to be divided into separate, independent units (shards) in order to reduce latency and increase network bandwidth.
WHAT TO DO AS AN ETH HOLDER TO JOIN THE MERGE:
If you are an ETH holder, nothing is required of you to join the Ethereum merge. Every block transaction and history remains intact on the blockchain after the merge. No information is lost and you are not required to do anything.
More information is available at the official Ethereum site: https://ethereum.org/en/upgrades/merge/
MISCONCEPTIONS AND POSSIBLE DRAWBACKS OF THE MERGE:
One of the benefits of the Merge looked out for is the proposed drop in gas fee rates. Gas fees are a market-set feature of the Ethereum network and the Merge does not guarantee a change in the price of operational and transactional costs, which are related to but not driven exclusively by L1 Ethereum network capacity. Proof of Stake networks on Cosmos’ DBFT (decentralized byzantine fault tolerant) consensus algorithm deliver these operating conditions and robust scalability, but the promised mass adoption of public blockchain networks will bring new tests for these chains and for Ethereum itself. Technology breaks.
Another possible downside to the Merge is the complexity of the affairs of the ‘new network’ to joiners who are just coming into the tech ecosystem. On the bright side, with an improved network and better operating system, there may be a rise in interest by people outside the blockchain tech ecosystem even if UX remains difficult to understand for most potential users around the world.
However, as every silver lining is to a cloud, there's a strong likelihood that a technical challenge or failure of the Merge's planning will result in unintended consequences down the line. Even if everything works flawlessly, an influx of new users and applications could still bog down even the best-thought-out and most scalable single network solution. This definitely cannot be a plus for users because competition for blockspace will render the network laggy, and more expensive to use. When added to the possibility of on-chain hubbub leading to skyrocketing gas prices again, alongside the diminishing sell-pressure on the price of Ether, there is reason to believe both.
Ethereum’s merge is ultimately bullish for the price of Ether, but there is also substantial room in the market for L2s and alternative L1 solutions, most notably the scalable Cosmos IBC chains.
Meta-Builders Community Reflections:
Meta-Builders community members are directly involved in the blockchain ecosystem. The team and close community were invited to respond to a questionnaire so their hands-on experience with this innovative technology could provide valuable insight as Web3 users worldwide celebrate the upcoming Merge event and all of the change it will bring to the blockchain technology space
Apeiron Creations (Core Team):
About Apeiron Creations: Apeiron Creations is a core team member who helps to re-align the game incentives of a Broken world focused on Profit instead of Human/Ecological Value. His focus is on the edge between Web3 and Permaculture, inspiring Natural Ecosystem Developers to work for Collective benefit alongside with Digital Ecosystem Designers.
Will gas fees rise or fall in response to the Merge?
As a Meta-Builders team member, I’m personally excited to see a reduction in gas prices, and an increase in the Ecological Standing of ETH as a protocol. I’m hoping that gas prices fall, but things certainly don’t always go as planned. It certainly adds a new and interesting Game Mechanic to the protocol.
Will the merge be good for onboarding?
“The Merge I think will be inherently good for On-boarding if the gas prices are cheaper, besides that, I think that being more ecologically friendly is the basis for a lot of anti-crypto folks, potentially leading to a new influx of users simply because Eth has followed through with its promises and has gone to an Eco-friendlier Model”.
Jason Primrose, (Founder, Lost Children of Andromeda):
About Jason: As seen in Forbes, VentureBeat, and Decrypt, and Meta-Builders Blog Jason's thriving career began with him serving as “the storyteller behind the curtain”, and has blossomed into him unveiling his own power as a creative force. As a BIPOC author, who also identifies as LGBTQ+, Primrose recognizes the NFT space as a place to provide equity and access for often overlooked creatives from marginalized communities.
What are your thoughts on this consequential moment?
“Again, this is a place I believe we can begin to present a strong enough argument against the environmental strain of the Blockchain and associated technologies, but I don’t think onboarding is solely hindered by this. There is the overall complexity of the ecosystem. How are we to explain to someone how Ethereum used to be an energy succubus, but now has been transformed due to a merge, etc. I can’t even go into it. Now that we have this sticking point handled, it’s time to handle the overall simplification of the onboarding process. I also think Ethereum affordability is standing in the way of more onboarding”.
Storm (Bounty Writer):
About Storm: I'm Storm Kelechi, a content writer and crypto enthusiast residing in Lagos, Nigeria.
Will gas fees rise or fall in response to the Merge? “Though there have been speculations by people that the gas fees would fall, I think it will remain the same even after the Merge, as the Merge isn't specifically about reducing gas fees…”
Will the Merge be good for onboarding?
“Yeah, I think it'll be a very great chance for new crypto investors to hop on because it is widely perceived that the price of Ethereum is going to rise after the Merge. Also, in the case of some Asian countries where crypto mining has been banned, they have hope of the ban being lifted as the Merge will reduce the amount of electricity used in mining”.
FINAL NOTES FROM META-BUILDERS ON THE MERGE:
The team and community all agree that the Merge will dramatically reduce the amount of electricity used in keeping the Ethereum network online, but the omnipresent discussion around the most significant moment in cryptocurrency in years will not be resolved until after Merge Day, approaching ever more rapidly. Entrepreneurs and builders in the blockchain ecosystem space are cautiously optimistic that public perception may begin to shift toward crypto technologies, but building remains the top priority of many.