What is the Ethereum Merge?
The main purpose of the merge is to transition Ethereum from its current energy-intensive proof-of-work consensus mechanism to its eco-friendly counterpart, proof-of-stake.
What is a consensus mechanism?
Consensus mechanisms allow distributed systems (networks of computers) to work together to validate entries and help keep the network secure.
What is proof-of-work (pow)?
Proof-of-work is the mechanism that allows the Ethereum network to come to consensus, or agree on things like account balances and the order of transactions.
In proof-of-work, miners prove they have capital at risk by expending energy. This ensures that the Ethereum chain is tremendously difficult to attack or manipulate.
What is proof-of-stake (pos)?
Proof-of-stake is the new consensus mechanism that will be used by the Ethereum protocol to achieve distributed consensus. In proof-of-stake, in order to become a validator, you must first deposit 32 ETH into the deposit contract. This staked Ethereum then acts as collateral that can be destroyed if the validator behaves dishonestly.
The transition to proof-of-stake will reduce energy consumption by nearly 99.95%.
What do I need to do to get ready?
You do not need to do anything to protect your assets entering the merge. The entire history of Ethereum will remain intact and unaltered after the transition to proof-of-stake. Any funds or NFT’s held in your wallet before the merge will still be accessible after the merge.
This will signal the end of proof-of-work and will introduce an era of a more sustainable, eco-friendly Ethereum.