ETH 2.0 Merge
ETH 2.0 Merge is the transition from the current Proof of Work (PoW) to Proof of Stake (PoS) consensus mechanism used by Ethereum. The consensus mechanism refers to the process used to validate every blockchain transaction.
PoW: Miners compete against each other using specialized computers and hardware to be the first to solve a complex puzzle. The winning miner has the opportunity to validate the transaction.
PoS: Validators need to lock up and “stake” a certain amount of the currency and for a minimum amount of time as collateral, before they can be awarded the opportunity to validate transactions.
The Merge will occur when the current Ethereum PoW Mainnet that is running parallel to the Ethereum PoS Beacon Chain merges, and then updates.
After the Merge, the impact will be:
The end of PoW for Ethereum and the update to PoS
Network Validators will stake ETH
The PoS system will be less energy intensive as PoW consumes more energy and PoS will be more “green” and “ecofriendly”
Offer greater security and stability with the staking of ETH
Seen as newer and more advanced system
The ETH Merge is a very complex process and is the reason why it has taken so long to occur.
You can learn more about Consensus Mechanisms here:
https://www.l82crypto.com/p/proof-of-what?s=w
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