According to Ethereum co-founder Vitalik Buterin, the Ethereum network update will be released around mid-September 2022. But it has already managed to acquire a huge number of rumors, including those related to gas fees.
When the news of the successful merger on the Goerli network broke on August 11, the price of ETH – Ethereum’s native token – rose by more than 10%. The testnet merger is the last step before the Beacon Chain merges with the Ethereum network runtime to move the blockchain to Proof-of-Stake. The next day, the value of ETH reached $2,000.
After Buterin announced the date of the upcoming update, ETH took off more than 40%.
The Ethereum team has denied some rumors
The Ethereum network suffered from scalability issues due to huge loads, which led to higher gas fees. The user pays a fee to complete a transaction on Ethereum. An example of a transaction would be the minting of NFTs on the blockchain. The less congested the network, the lower the gas fee.
After the update, the Ethereum consensus mechanism will change from Proof-of-Work to Proof-of-Stake. Such an innovation will not directly affect the gas fee, but we may see a slight decrease in it later, when sharding is introduced.
As part of sharding, information from a common database is divided into blocks and distributed across different servers, which are called shards – this is how sharding solves the scaling problem.
Staking users lock ETH on the Ethereum network, after which they are able to verify transactions and receive rewards for this. To become validators, users must lock up at least 32 ETH, and they will be able to withdraw coins only after phase 1.5 of the Ethereum update, codenamed “Shanghai”. This information gave rise to rumors that in the future, users will massively withdraw ETH tokens, which could lead to a sharp drop in the price of the asset. However, the developers assure that the speed with which the validators can take the locked coins will be severely limited.
The team also confirmed that the staking reward will be paid before the Shanghai update and will likely be around 50%, not 300% as rumored.
As for the rumored increase in transaction speed, the developers stated that any change in speed would be imperceptible to the average user.
The team also announced that after the update, anyone will be able to become a validator – there will no longer be a requirement to block a minimum of 32 ETH.
Coinbase will suspend transactions on Ethereum
More recently, Coinbase announced that as a precautionary measure, it will temporarily suspend ETH transactions during the merge. But this measure seems redundant, because the developers do not expect any problems during this process.
Coinbase rival Binance has said it will support the Ethereum upgrade, but so far there is no word on whether the exchange will suspend transactions as well.
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