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Why is Ethereum's Merge significant?

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Briefly describe the stages of the merger and the major changes after the merger.

Original author: Li.Finance

Original compilation: 0x22, Rhythm BlockBeats

This article is compiled from DEX aggregation protocol Li.Finance on social media platform Rhythm BlockBeats organizes and translates it as follows:

Ethereum merge plan will be June 22 Today, 3 months from now. This merger may be one of the most historic events in the history of cryptocurrencies. The following sections explain why merging events is so important.

First of all, this merger is a comprehensive transition of Ethereum from Proof of Work (PoW) to Proof of Stake (PoS).

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A lot of the groundwork needed to perform the merge has now been done:

·The beacon chain is already online

·There has been a simulated fork

PoS already has a certain client-friendliness

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Until recently, the ethereum merger and its implications were ignored. However, with the launch of the Kiln test network and the hard work of the big guys in the circle to popularize everyone's knowledge about the merger, a new theory has gradually formed.

The preparation list for merging mainnet is almost complete. If all goes well and there are no surprises, it will be possible to see the merger as expected in June. (Checklist)

The following are the major changes after the merger:

1. The issuance of new ETH will be reduced by 90%, that is, the daily output of Ethereum will be reduced by about 90%, from 12,000 ETH to 1280 ETH per day. ETH annual inflation will drop from 4.3% to 0.43%.

2. Increase the rewards for PoS verifiers - more than 10.65 million ETH were over 300,000 Validators are staked on the Beacon Chain with a current annual interest rate of 4.7%. These rewards will be increased 2-3 times post-merger to about 10-15%.

3. Energy-saving green, ETH energy consumption Will drop by 99.95%

Contrary to what many believe, Ethereum mainnet gas fees will not drop due to the merger. For gas fees, users can use the currently evolving L2 to bridge through protocols such as LI.FI.

While the merger has given the project a boost, Ethereum developers have expressed concerns about the direction the project is headed. In their view, Ethereum is not moving in the "direction of simplicity" and is increasing the complexity of the blockchain network.