Ethereum 2.0 and The Merge
Assalamu Alaikum
The most revolutionary and long-awaited upgrade in the history of the Ethereum network was 'Ethereum 2.0', whose main goal was to increase the speed of this blockchain, reduce transaction costs (Gas Fee) and make it completely environmentally sustainable. And the most important and historic step in this long transformation process was 'The Merge'. From the beginning, the Ethereum network ran on a 'Proof-of-Work' (PoW) consensus mechanism like Bitcoin, where powerful computers and a huge amount of electricity were required to solve complex mathematical puzzles. Through the Merge upgrade, Ethereum's old PoW mainnet was successfully integrated or merged with a completely new and environmentally friendly 'Proof-of-Stake' (PoS) beacon chain. This historic merger permanently ended token mining on the Ethereum network and replaced it with cryptocurrency 'staking' to verify network security and transactions. The Merge's biggest and most positive impact was on the global environment. The move to Proof-of-Stake reduced the Ethereum network's electricity consumption by about 99.95 percent, ending long-standing concerns among environmentalists and establishing Ethereum as a green blockchain in the crypto world. From an economic perspective, the upgrade also significantly reduced the annual supply of new Ethereum coins, helping to turn Ethereum into a deflationary asset. However, there was a major misconception among ordinary users that Ethereum's network fees or gas fees would suddenly drop and transaction speeds would skyrocket as soon as The Merge took place. In reality, The Merge did not directly reduce gas fees; rather, it was a process of changing the core or backend engine of Ethereum, which facilitated the work of the next steps of Ethereum 2.0, such as sharding and Layer-2 scaling solutions. In short, The Merge was not a simple software update; it was an incredibly technical task, like replacing an old engine with a new and powerful modern engine while the engine was still in flight. With this successful merge, Ethereum not only increased its institutional acceptance, but also further consolidated its leading position in the smart contracts and decentralized applications (dApps) market. The Merge was the most successful and revolutionary manifestation of the strong foundation that Ethereum 2.0 laid to complete thousands of future transactions extremely quickly and at low cost. Today's discussion concludes here. I hope you've found it interesting. Please share your thoughts on today's topic. Prayers for everyone. May everyone be well. Amen.


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