Debunking 5 Popular Myths Around Ethereum’s Merge
The Merge, Ethereum’s latest upgrade, has generated a lot of excitement in the last few months. There has been much speculation and false claims about the Merge, despite all the excitement. We’ll be busting five of the most popular myths today.
Let’s start by briefly summarizing what’s going on.
The Merge will take place between September 10-20, barring any unforeseen circumstances. It will replace Ethereum’s current proof-of work (PoW), consensus mechanism, with a proof of stake (PoS). Anyone can become an Ethereum network validater by taking instead of mining Ethereum (ETH) once the move is completed.
Myth 2: The Merge Will Produce a New Token
The Merge is an upgrade of the Ethereum network and not the start of a new token or network. The Ethereum blockchain’s native asset ether will continue to exist after The Merge is completed.
The Ethereum Foundation’s 2018 roadmap was initially called “Ethereum 2.0.” This could have led to some people believing that the project team was building a new blockchain. The Ethereum Foundation issued a January statement clarifying the situation. It stated that it would be phasing out terms like “Eth2”, and “Ethereum 2.”
- Eth1 was officially designated the “consensus level”.
- Eth2 was officially designated the “execution level.”
- The Merge refers to the event in which these layers combine.
Users should be cautious about anyone offering “ETH2” tokens as we near the date for The Merge. For more information about what will happen to ETH holders during and after the Merge, please refer to our guide.
Myth 2 – Gas Fees Will Decline
Many Ethereum users hoped that the transition to a new consensus mechanism would lower the network’s notoriously high fees. However, the Ethereum Foundation states that The Merge will not increase network capacity and gas fees will not change.
This is the next major upgrade to Ethereum. It will launch in 2023. Sharding aims to reduce gas fees and break down the network traffic to make it more manageable.
Myth #3: Transactions will become faster
Transaction speed will see a slight increase, with block publishing times going down from Ethereum Mainnet’s 13 seconds to Beacon Chain’s 12.2 seconds. The 10% speed increase will not be noticeable to most users.
Myth #4: Stakers May Withdraw Their Reward After The Merge
You can withdraw staked Ethereum ETH from your holder, but your funds will remain locked for 6-12 months until The Merge is completed. Ethereum will rate-limit stake withdrawals until they are enabled.
Beacon Chain’s ETH rewards are still locked and illiquid. However, validators will be able to immediately access tip rewards for Ethereum-based transactions. Those holding BETH will be able swap to ETH after The Merge.
Myth 5 – Ethereum Will Suspend Its Network
If everything goes smoothly during the transition from PoW into PoS, there will be no downtime. The upgrade will simply occur and Ethereum will continue to work smoothly during The Merge.
Please plan ahead if you are holding ETH on Binance. There will be a temporary pause in withdrawals and deposits of ETH and ERC-20 tokens.
Get Ready for the Merge with Binance
Visit our Ethereum Merge landing site to learn more about the Merge. Follow us on Twitter and our blog to keep up-to-date with all things Ethereum and The Merge. Binance’s team will do everything possible to make sure that users of ETH have a seamless transition. Start by creating an account on Binance and verifying your identity.