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Following various misconceptions about the forthcoming Ethereum protocol Merge, especially concerning gas fees, the Ethereum Foundation has published an updated response.
As a reaction to this misconception, “The Merge will reduce gas fees.” The ETH Foundation mentioned that it is totally untrue. To clarify, it was stated that gas fees come as a result of the demand placed on the network and have nothing to do with the capacity of the network.
Following much testing, The Merge will be an advancement of the consensus mechanism available on the ETH network. Ordinarily, Ethereum utilizes the proof-of-work (PoW) consensus mechanism which is a cryptographic proof that verifies the accuracy of new transactions added to the blockchain.
Additionally, the PoW helps anonymous entities to build trust in a decentralized network. Part of the criticism made about the PoW consensus mechanism is its energy consumption requirement.
Mining one Bitcoin (BTC) on the PoW mechanism, was equivalent to consuming energy meant for an average American home for a period of nine years. Also, the PoW consensus mechanism offers centralization which is a far cry from the decentralization which crypto investors look out for.
Misconceptions About The Merge
Instead, the Merge is a full transition from the PoW to a proof-of-stake (PoS) consensus mechanism.
Once its launch is completed, the current Ethereum Mainnet will merge with the Beacon Chain proof-of-stake system. As part of its offering, there will be a full scaling upgrade such as sharding. As to popular opinion, gas fees will not be reduced, although the rate of carbon emission will be reduced to up to 99.95%.
Quoting the ETH Foundation,
“The Merge is a change of consensus mechanism, not an expansion of network capacity, and will not result in lower gas fees.” Comparatively, any parameter that influences the capacity of the network is not affected by the new consensus mechanism. No significant change will be made to such parameters.
Several other misconceptions about the Ethereum network’s latest upgrade include the fact that transactions will be carried out at a faster speed after The Merge. On the other hand, with PoS, the ETH network will offer security, sustainability, and scalability.
The post The Merge Will Not Cause Gas Fee Reduction – Ethereum Foundation appeared first on Blockchain, Crypto and Stock News.
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