The news of the Merge in September is seen as a kind of event of the year, the turning point that investors hope will give new momentum to volumes and substantial revenue to those who hold ETH in their wallets.
What is meant by “Merge”
In simple terms, the Merge consists of the transition from the Proof of Work protocol, which is Bitcoin’s mining-based protocol, to the Proof of Stake protocol, allowing for a less wasteful and greener process.
In an increasingly energy-conscious world, this transition is seen as crucial to the future of the digital currency, which analysts see as rising sharply should the transition go smoothly.
However, there is obviously no guarantee that the transition will go smoothly, and it is with this in mind that the decision to block inbound and outbound Ethereum operations for its users is justified.
On 19 September, after the successful upgrade on the Goerli testnet, it will be the turn of the transition to Proof of Stake, which will allow a 99.5% energy saving compared to the currently used system and will also be implemented by an upgrade regarding digital security.
Product Manager Armin Rezaiean Asel stated that he would block all those Ethereum deposits and withdrawals in conjunction with the ETH Merge.
The decision was justified on the grounds of customer safety, which at such a delicate and confusing stage could be subjected to scams from hackers or digital criminals who will introduce fake Ethereums into the market in a race for easy money that could fool the less careful.
This step that closely relates to the ecological issue will bring benefits both energetically and functionally by adding to the current security system an additional implementation, moreover, transactions will be faster and there will be less Ethereum in circulation due to a kind of large halving that will however presumably bestow a growth in the value of the currency due to its scarcity.
Rezaiean Asel stated that:
“While the merger should go smoothly from a user’s perspective, this downtime will allow us to ensure that the transition is successfully reflected in our systems. We do not expect this to affect other networks, nor the trading of ETH and ERC-20 tokens in our centralized trading products”.