5 misunderstandings about The Merge of Ethereum

5 misunderstandings about The Merge of Ethereum

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2022-08-15 20:55:41

Event The Merge The expected launch date has been officially fixed on September 15-16. However, a part of the community still does not properly understand the new changes of Ethereum. Take a look at the articles below to see if you have any “wrong” information!

Myth 1: Ethereum gas fees drop after The Merge

This is one of the most misleading information, perhaps because the status of gas transaction fees is too high, many people have unintentionally “conceived” this concept.

Reality, The Merge is just an improvement on the consensus mechanism, from the form Proof-of-work (PoW) luxurious Proof-of-Stake (PoS). In order to reduce gas costs, it is necessary to expand the capacity and bandwidth of the network – another story that the Vitalik team is definitely working on, but has not made any announcements yet.

Myth 2: Ethereum transaction time is “fast” after The Merge

Exactly, transactions on the Ethereum network will be faster after The Merge but not significantly.

The current, Ethereum 2.0 Beacon Chain allows the validator to generate a new block every 12 seconds. If The Merge takes place with two chains merging into one Mainnet, the expected block generation time will be 13.3 seconds.

Estimated from the Dev team fee of the event, after The Merge, the block creation time will be shortened by about 10%. However, these numbers also show that the transaction speed has not changed too significantly, so if you are a normal user, it is difficult to notice.

Myth 3: The Merge will make the Ethereum blockchain “strange” (?!)

Besides the “too positive” misunderstanding above, some people speculate that the Merge process will make the Ethereum network “freeze for a few seconds”. This is of course an unfounded opinion. Because the developers have calculated that there will be no “downtime” (stop) when switching from PoW to PoS.

Myth 4: Can withdraw stETH immediately after The Merge

Misunderstandings about stETH and The Merge
Misunderstandings about stETH and The Merge

Currently stETH is locked on the Beacon Chain. Many users think that after The Merge, this stETH can be unlocked immediately, but the time for this has been announced on the roadmap.

Accordingly, stETH will be locked until the Shanghai Upgrade (Shanghai), a major upgrade after The Merge. The Shanghai Upgrade is expected to take place in 6-12 months if not delayed.

Myth 5: Validator has not been able to withdraw ETH rewards after The Merge

Contrary to misunderstanding 4, there are false beliefs that: “stETH has to go to the Shanghai Upgrade to be withdrawn, so does the validator transaction fee reward.”

The truth is that stETH is completely different from the validator reward. Ethereum will allow validators to receive transaction fees and benefits from backing the proposal at the Ethereum mainnet or execution layer right after The Merge.

The simple explanation is that the transaction fees or benefit rewards are taken from the available ETH on the network, not the newly issued ETH, so the validator can receive it immediately.

Hope the above article has helped you to understand correctly about Ethereum’s The Merge event taking place on September 15-16. Don’t forget to follow CHK for the fastest and most exciting news on the DeFi market!

#misunderstandings #Merge #Ethereum

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