What is Eth 2.0?
The Merge, formerly known as “Eth 2.0,” is Ethereum’s migration from its current Proof of Work consensus mechanism, to a Proof of Stake consensus mechanism.
The Ethereum Merge is currently scheduled to occur around the 15th or 16th of September, 2022.
Proof of Work
Proof of work at scale requires huge amounts of energy, which only increases as more miners join the network.Proof of Work requires all the miners in the network to compete to solve complex computational puzzles to create new blocks and earn rewards.
Proof of Stake
In a Proof of Stake model, validators, not miners, secure the network by staking ETH.With this model, validators consume far less energy to create new blocks and earn rewards - 99.95% less, in fact.This means Proof of Stake will eliminate Ethereum’s carbon footprint, overnight.
The upgrade to Proof of Stake also paves the way for improved scalability by enabling a new and more efficient method of data partitioning known as sharding.
Misconceptions about The Merge
- The Merge will reduce gas fees.
- The Merge will create a new token ETH 2.0.
Fact: No,The Merge is not to split in the blockchain and the creation of a new token.
Fact: No, the gas fees or transaction fees on Ethereum will not reduce after the Merge. The Merge will be changing how blocks are created. It doesn’t address how individual transaction costs can be reduced.