\u201cIt\u2019s important to remember that initially, the\u00a0Beacon Chain\u00a0shipped separately from\u00a0Mainnet. Ethereum Mainnet \u2013 with all it\u2019s accounts, balances, smart contracts, and blockchain state \u2013 continues to be secured by\u00a0proof-of-work, even while the Beacon Chain runs in parallel using\u00a0proof-of-stake. The approaching Merge is when these two systems finally come together, and proof-of-work is replaced permanently by proof-of-stake.<\/em><\/p>\n \u201cLet\u2019s consider an analogy. Imagine Ethereum is a spaceship that isn\u2019t quite ready for an interstellar voyage. With the Beacon Chain, the community has built a new engine and a hardened hull. After significant testing, it\u2019s almost time to hot-swap the new engine for the old mid-flight. This will merge the new, more efficient engine into the existing ship, ready to put in some serious lightyears and take on the universe.<\/em>\u201c<\/p>\n There are two main reasons:<\/p>\n Here is what Etheruem Foundation has to say about the upcoming change in Ethereum\u2019s energy consumption:<\/p>\n \u201cEthereum\u2019s energy consumption will be reduced by ~99.95% following\u00a0The Merge\u00a0from proof-of-work (PoW) to proof-of-stake (PoS). After The Merge, Ethereum will use dramatically less carbon to be more secure.<\/em><\/p>\n \u201cSince its inception, Ethereum has aimed to implement a proof-of-stake consensus mechanism, but doing this without compromising\u00a0Ethereum\u2019s vision of being a secure, scalable, and decentralized blockchain\u00a0has taken years of focused research and development. <\/em><\/p>\n \u201cTherefore, the network started by using proof-of-work consensus. Proof-of-work consensus requires miners to use their computing hardware to solve a puzzle. The solution to the puzzle proves that energy has been expended by the miner, demonstrating that they invested real-world value for the right to add to the blockchain. <\/em><\/p>\n \u201cBoth proof-of-work and proof-of-stake are just mechanisms to decide who gets to add the next block. Swapping proof-of-work for proof-of-stake, where the real-world value invested comes from ETH staked directly in a smart contract, removes the need for miners to burn energy to add to the blockchain. Therefore, the environmental cost of securing the network is drastically reduced.<\/em>\u201c<\/p>\n On 24 August 2022, Ethereum Foundation made an interesting\u00a0announcement\u00a0on its blog regarding the date for the Merge.<\/p>\n Ethereum Foundation first explained how the Merge differs from previous Ethereum protocol upgrades (or hard forks):<\/p>\n \u201cThe Merge is different from previous network upgrades in two ways. First, node operators need to update both their consensus layer (CL) and execution layer (EL) clients in tandem, rather than just one of the two. Second, the upgrade activates in two phases: the first, named Bellatrix, at an epoch height on the Beacon Chain, and the second, named Paris, upon hitting a\u00a0 The Merge \u201cmust first be activated on the Beacon Chain with the Bellatrix upgrade,\u201d which is scheduled for epoch 144896 on the Beacon Chain, i.e. 11:34:47am UTC on 6 September 2022. Then, \u201cthe proof-of-work chain will migrate to proof-of-stake upon hitting a specific Total Difficulty value,\u201d which is 58750000000000000000000, and expected to happen between September 10 and September 20.<\/p>\n Ethereum\u2019s core developers have successfully performed the full Merge upgrade on multiple testnets, and so everything should go smoothly. However, even if thereare any technical glitches when the Merge upgrade is carried out on the Ethereum Mainnnet (the Ethereum blockchain that is storing data about every transaction since genesi, no transactions or user funds should be lost (since all of this data is backed up), and Ethereum\u2019s core developers should be able to fix any issues fairly quickly.<\/p>\n No. So, if anyone offers to help you to prepare your Ethereum wallet(s) for the Merge, it is extremely likely that you are talking to a scammer.<\/p>\n There will be only be a slight increase in the speed of the network since the time to process a new block is decreasing from 13 seconds to 12 seconds.<\/p>\n This upgrade does not address the problem of high gas fees when the Ethereum network gets very busy.<\/p>\n![](\"https:\/\/cryptoglobe.s3.eu-west-2.amazonaws.com\/2022\/09\/PVkzxlsr-Screenshot_20220904-091743_Chrome-1280x557.jpg\")
<\/p>\nWhy Is the Merge Important?<\/h2>\n
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When Is the Merge Happening?<\/h2>\n
Total Difficulty<\/code>\u00a0value on the execution layer.<\/em>\u201c<\/p>\nWhat Are the Risks of the Merge?<\/h2>\n
Do $ETH Holders Need To Do Anything To Prepare for the Merge?<\/h2>\n
How Much Faster Will the Ethereum Network Become After the Merge?<\/h2>\n
How Much Cheaper Will Ethereum Transactions Become After the Merge?<\/h2>\n
Image Credit<\/h2>\n