What is The Merge?
The Merge represents the joining of the existing execution layer of Ethereum (the Mainnet we use today) with its new proof-of-stake consensus layer, the Beacon Chain. It eliminates the need for energy-intensive mining and instead secures the network using staked ETH. A truly exciting step in realizing the Ethereum vision – more scalability, security, and sustainability.
What will happen to the ETH network after The Merge?
Throughout Ethereum's history, developers have been hard at work preparing for an eventual transition away from proof-of-work to proof-of-stake. On December 1, 2020, the Beacon Chain was created, which has since existed as a separate blockchain to Mainnet, running in parallel.
The Beacon Chain has not been processing Mainnet transactions. Instead, it has been reaching consensus on its own state by agreeing on active validators and their account balances. After extensive testing, the Beacon Chain's time to reach consensus on more is rapidly approaching. After The Merge, the Beacon Chain will be the consensus engine for all network data, including execution layer transactions and account balances.
The Merge represents the official switch to using the Beacon Chain as the engine of block production. Mining will no longer be the means of producing valid blocks. Instead, the proof-of-stake validators assume this role and will be responsible for processing the validity of all transactions and proposing blocks.
What will happen to my ETH assets after The Merge?
Your funds won’t be impacted during The Merge.
Despite swapping out proof-of-work, the entire history of Ethereum since genesis remains intact and unaltered after the transition to proof-of-stake. Any funds held in your wallet before The Merge will still be accessible after The Merge. As a user or holder of ETH or any other digital asset on Ethereum, as well as non-node-operating stakers, you do not need to do anything with your funds or wallet before The Merge.
Do I need to do anything with my ELLIPAL cold wallet or ELLIPAL Mobile APP for this merge?
Any funds held in your wallet before The Merge will still be accessible after The Merge. No action is required to upgrade on your part.
However, an expected short pause in ELLIPAL ETH service during The Merge could take place. It’s advisable that investors refrain from executing trades involving Ethereum to avoid any losses arising out of unforeseen glitches during The Merge.
Will The Merge make Ethereum cheaper to use?
The Merge is a change of consensus mechanism, not an expansion of network capacity, and will not result in lower gas fees.
Gas fees are a product of network demand relative to the capacity of the network. The Merge deprecates the use of proof-of-work, transitioning to proof-of-stake for consensus, but does not significantly change any parameters that directly influence network capacity or throughput.
Will The Merge make Ethereum faster?
A transaction's "speed" can be measured in a few ways, including time to be included in a block and time to finalization. Both of these changes slightly, but not in a way that users will notice.