There are those who believe that after the merger, commissions will drop immediately on the main network.
Will the ‘stakers’ be able to withdraw their 32 ethers (ETH) as soon as the network merges? Tim Beiko answers it.
There has been a lot of talk lately about the long-awaited merger (The Merge) of the current Ethereum network with the new blockchain called Ethereum 2.0.
Many have had misconceptions about what will happen to the network of Ethereum after the merger. Ryan Sean Adams, CEO of the investment company Mythos Capital, spoke about it on the Bankless YouTube channel, an educational program where the businessman comments on issues related to the world of cryptocurrencies.
In the interview published on June 15, members of the Bankless channel, including Ryan Sean Adams, spoke with Ethereum developer Tim Beiko on misconceptions about the new merger with the Ethereum 2.0 network.
Below, each of these five misconceptions will be cited and what Tim Beiko responded to.
Beiko replied that this is incorrect, since the merge is basically the transition from the proof of work (PoW) to Proof of Stake (PoS). The developer adds that a new network update will be required for staked assets to be removed.
The reason for this is that the merger of Ethereum with Ethereum 2.0 is “the most complicated change we have made to the network and we want to limit ourselves as much as possible to make sure it goes well,” the developer mentioned.
After the merger, the next update will be the one that will allow withdrawals of assets in stake. That is, they will still be blocked after the change, in addition, Beiko indicates that this new update is already being worked on. No information is yet given on when this new update will be released.
2. The merger will reduce the transaction fee on the Ethereum network
There is a grain of truth to this idea, according to Adams. But he explains that the change from proof of work (PoW) to proof of stake (PoS) it is not what will directly reduce the transaction fee.
Instead, the idea of the Ethereum development team to reduce transaction fees is rollups. These are technological implementations that basically allow the execution of multiple transactions as if they were one. This increases the possibilities of the network in terms of processing transactions per second and also reduces the commissions paid, Beiko mentions.
He adds that, for this, another series of improvements will be brought, of which they are also beginning to work.
3. The merger will increase ETH issuance
The CEO of Mythos Capital stated that he has heard from some people who believe that, with the Merger, the rate of ETH issuance and the circulation of this cryptocurrency will increase.
It is precisely the opposite, what is expected to happen. As CriptoNoticias has explained, once the participation test is passed, everything is designed so that the amount of ETH burned (due to the EIP-1559 proposal that is already active) exceeds the amount of ETH issued.
Thus, Ethereum —if all goes according to plan— will become a deflationary monetary systemthat is, the currency of your cryptocurrency is reduced over time.
4. Users will need to download an update for their apps after the merge
The developer answers that the stakers or infrastructure providers, they will need to do some things after the merger. The entire list can be found on the official Ethereum blog. But Beiko adds that if you only use the network to establish transactions and deploy smart contracts, you won’t need to do anything after the merger.
That is, for users of decentralized applications like DeFi, NFT marketplaces, or DAOs built on Ethereum, nothing will change. They will continue to use the network as usual.
5. You will not be able to run an Ethereum node without first having 32 ETH
The expert responds by explaining that there are two types of nodes in the Ethereum network. Among them are the validators, which are the nodes that produce blocks and to execute one of these, 32 ETH are needed.
Tim compares each of these blocks as a lottery, and the 32 ETH that is put into stake as the tickets to potentially be able to produce the next block. He adds that the meaning of “running a node” is actually verifying that the blocks and the transactions that these validators create are valid.
On the other hand, the developer indicates that users who want making sure that the blocks produced by the validators, which are propagated on the network, are actually correct, they will be able to do so for free. You can download the consensus layer client, the execution layer client and then run it and then sync it with the blockchain.
To do this, all you have to do is run a non-validating public node, “just like voting in local elections, like it’s a public good and a check on power,” Ryan concludes.
Recently, the developers of Ethereum announced the new update called Gray Glacier, which will cause the difficulty bomb to activate on the network in mid-September, as reported by CriptoNoticias. This is the first step in merging the Ethereum network to the Ethereum 2.0 network.