Witness the history of Ethereum "Silk Slippery" and write a new chapter in POS

We have waited for several years to live up to our expectations.At about 02:44 PM on September 15, 2022 (Beijing time), Ethereum; The Merge was officially activated. A few minutes later, the first epoch was completed, marking that the Ethereum blockchain had completed the transition from proof of work (PoW) to proof of equity (PoS), and the new era of PoS was officially opened.

Vitalik Buterin, co-founder of Ethereum, tweeted to celebrate: "This is an important moment for the Ethereum ecosystem, and everyone who helps the merger should be very proud"!

In the YouTube live broadcast of the "Merging Watch Party" hosted by the Ethereum Foundation, with the "POS Activated" picture sent by the development team, more than 40000 encryptors witnessed this history online.

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Why is consolidation so important? On the one hand, the encryptors have waited too long. The vision of Ethereum's migration to PoS was first proposed in 2014. The upgrade was originally scheduled to take place in 2016, which has been repeatedly delayed. Many critics even bet that the merger will never happen.

On the other hand, the combination of Ethereum and smart contracts marks another significant development of the encryption market after the birth of Bitcoin in 2009. Without Ethereum, there would be no future booming DeFi, NFT, DAO or decentralized meta universe vision. The merger represents the switching of the underlying consensus engine of the blockchain while Ethereum continues to operate and supports the DeFi, NFT and application economy worth more than 100 billion dollars.

"Silky" transition

Speaking of merger, co founder of Ethereum; Joseph Lubin  He once told Bloomberg that the process should be very smooth. He said, "It's like sleeping when your iPhone or laptop automatically upgrades its operating system overnight.".

Indeed, there were no technical obstacles to the merger.

EtherNodes data shows that 88% of the execution layer clients are ready for PoS consolidation before the consolidation. After the total terminal difficulty of 58750000000000000000 was triggered, according to the conference call of the Ethereum Foundation, about 4% of the verifiers withdrew from the network after The Merge was activated, but this proportion was not enough to affect the network, and was lower than some estimates before The Merge. About 15 minutes later, the first epoch was completed, and Ethereum officially completed the transition to proof of equity.

According to Dune Analytic data, as of the time of publication, there are nearly 430000 verifiers on the Ethereum beacon chain, and the pledged ETH accounts for 11.36% of the total supply. Lido  The market share is 30.31%.

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Did "Buy rumors, sell news" happen?

According to Bitcom terminal data, after the activation of The Merge, the price of Ethereum did not fluctuate sharply, basically remained at about $1600, and then experienced a temporary surge from $1600 to $1655. About seven hours later, ETH suddenly plummeted to $1489, the largest one-day drop since August 26. In contrast, Bitcoin's 24-hour decline was only 2%.

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Encrypted Data Company; Kaiko  Research analyst Riyad Carey said in his analysis article that the sudden collapse seemed to be a reaction of "buying rumors and selling news".

In fact, this market reaction has traces to follow.

Data Analysis Platform; Nansen  According to a report of, before the merger of Ethereum, the number of ETH flowing into the cryptocurrency exchange increased sharply. The crypto lending platform Nexo transferred 450000 ETH ($720 million) to Coin Security, while another confirmed multi signature wallet went to; Bitfinex  288442 ETH (US $461 million) was transferred. According to Nansen's data, the cumulative value of ETH flowing into the exchange reached 1.2 billion dollars, the largest in six months.

A large number of tokens flow into the exchange, which may indicate that the buyer wants to sell, and the market selling pressure increases, directly dragging down the token price.

Carey predicted in his report: "The ETH market still has a lot of leverage, so the volatility should be predictable and may be welcomed by traders. We also observed that the market depth has declined and the spread has increased, so this may affect the greater price trend."

Energy use reduced by 99.988%

Global regulators have been criticizing the energy consumption of cryptocurrencies. The amount of energy consumed by PoW has been strictly reviewed by legislators and policy makers around the world. The biggest change of PoS mechanism is to eliminate miners, and the verifier is responsible for protecting the network.

According to  Digiconomist  According to an estimate of, before the transition to PoS, a single Ethereum transaction used 200.05 kilowatt hours (kWh) of electricity, equivalent to the average 6.7 days of electricity consumption of American households.

This merger has reduced the energy use of Ethereum by 99.988% and the carbon dioxide emissions by 99.992%. According to a new report of the Crypto Carbon Ratings Institute (CCRI), this reduction means that the carbon dioxide emissions of the network are less than those of hundreds of American households during the annual power consumption period.

ConsenSys  Founder oseph Lubin said in a statement: "We are happy to entrust CCRI to write this report, which confirms that the impact of Ethereum merger may be the largest decarbonization effort in any industry in history".

Problems to be solved

Although the merger has basically solved the sustainability problem of Ethereum, it still faces other challenges, which have intensified with the substantial growth of users in the past two years.

  • Scalability. The processing efficiency of Ethereum (the number of transactions that can be processed per second) is constrained by the design mechanism. At present, Ethereum can process about 15 transactions per second. This greatly limits its use in application building, real-time data processing, and other high-level use cases.

  • Cost. The biggest misconception about merging is that it reduces; Gas  Fees, Halborn  Co Founder and Chief Technology Officer; Steven Walbroehl  It explained: "This is the change of consensus mechanism, not the expansion of network capacity, which will reduce the gas fee". When demand is strong, gas fees will soar, sometimes even exceeding the actual value of the transaction itself. If the transaction fails, users will still have to pay fees, which will hinder the adoption of new users.

  • Interoperability. Ethereum cannot simply or directly interoperate with other blockchains, which means that transferring assets to other chains depends on externally designed mechanisms (such as Layer-2 chains or cross chain bridges) to provide solutions.

Therefore, consolidation does not address some of the core barriers to mainstream encryption adoption. The Ethereum development team said that they would continue to be committed to development – such as "sharding" – allowing nodes to reduce data costs by only storing subsets of data through sharding, which may improve these problems, but when to land is still a long waiting process.

For God V, the merger is just the beginning. He said in the live broadcast on Thursday: "Let's build all other parts of this ecosystem and turn Ethereum into what we want."

Author: Mary Liu