The most anticipated event in the history of the ETH network is approaching. After confirming that a retest of The Merge update – Ropsten – will take place on June 8, Ethereum network co-founder Vitalik Buterin informed that the definitive migration to the Proof of Stake (PoS) model should take place in August. That is, within three months, approximately.
Buterin made this statement during his speech at the ETH developer summit in Shanghai, the ETH Shanghai Summit.
However, he pondered that the launch could be postponed to September or October. That’s if developers run into some difficulties in the process.
Migration to PoS in August
The end of Proof of Work (PoW) mining on the ETH network and its switch to PoS was named “The Merge”. With this migration, there will be no more “miners” on the network. Instead, there will be so-called “validators”, who will earn rewards for validating blocks on the network.
Validators will be able to staking ETH to perform this process, earning the coins generated in the blocks. That is, the PoS system will also allow investors to earn passive income.
At the same time, Proof of Stake (PoS) will considerably reduce the amount of energy consumed by the blockchain, making it more sustainable and with less environmental impact. After all, the PoW model consumes a lot of energy in the mining process.
Furthermore, with The Merge, the expectation is that there will be a reduction in ETH issuance by around 90%. So with less Ether in circulation there will be less supply and greater demand. Consequently, this could drive up the price of the second largest cryptocurrency on the market.
Much awaited update
For the reasons mentioned, this will be the biggest upgrade of the ETH network in its seven years of existence and it is highly anticipated by the community.
Despite delays and delays, it looks like the migration will, in fact, take place in the second half of 2022. According to ETH lead developer Preston Van Loon, August is a likely month for the process to complete:
“As far as we know, if all goes according to plan, August makes sense. If we don’t have to move [a difficulty bomb]let’s do it as soon as possible,” he said on a panel at the Permissionless conference.
The difficulty bomb is an intentional process built into the ETH code that will slow down the network. The goal is to encourage developers to move forward with PoS and prevent miners from remaining in the Proof of Work (PoW) chain after the move.
While the difficulty bomb has been delayed multiple times to ensure the network continues to function properly, the team wants to avoid another delay this time and complete the merge before the blockchain slows down.