CoinSpot will be supporting the ETH network upgrade, called 'The Merge' which is set to take place later this year (Quarter 3/4 2022). The Merge will combine the already secure and reputable network with the Proof-of-Stake (PoS) consensus Beacon Chain resulting in the replacement of the existing Proof-of-Work (PoW) mechanism.
What is in this article
- What is The Merge?
- When will The Merge occur?
- What do I need to do?
- What will happen to holders of ETH or ETH related assets?
- Important Update
What is The Merge?
Ethereum is completing an upgrade to its network, as they will be merging with the Beacon Chain Proof-of-Stake-System (PoS).
The Merge represents the official transition and permanent replacement of the Proof-of-Work (PoW) consensus mechanism with the new Proof-of-Stake (PoS) consensus layer, the Beacon Chain.
Once The Merge is completed, PoW miners will no longer hold the responsibility for validating transactions and mining new tokens. Instead, blocks will be minted through nodes called validators. Validators of the network will receive tips in the form of transaction fees and staking rewards.
The ETH team have stated that this will reduce the high consumption of energy used for PoW mining by approximately 99.95% as significantly less resources are used for the Proof of Stake mechanism.
ETH will now use less energy and provide an even more reliable and sustainable network.
Post ETH Merge, the network wishes to change the way we use the Ethereum network, altering the architecture, providing a more reliable, secure and scalable network to the users, whilst sustaining their core value of a decentralised network.
When will the Merge occur?
Qtr 3-4 2022 as we near the end of the year, the ETH Development Team will provide a public announcement regarding the date of action. Once it is confirmed, CoinSpot will update the platform and communicate this to our users accordingly.
Any dates mentioned by the ETH Development Team are subject to change based on the progress of the event.
What do I need to do?
As a holder of ETH or any assets on the Ethereum Network (ERC-20), you will not be required to complete any actions before The Merge.
Please note there is no 'ETH2' or any other new token introduced with The Merge
The Ethereum Team advises holders to not send their ETH anywhere in an attempt to "upgrade to ETH2". As there is no "ETH2" token nor are there any actions required to upgrade on your part.
As always, we encourage users to stay vigilant and be aware of external parties requesting a transfer of tokens or similar common scams. Please refer to the article links below for the best understanding of the more recent and common fraudulent acts you may encounter.
What will happen to holders of ETH or ETH related assets?
The Merge will not directly affect users holding ETH or ETH related assets. The transition will only impact Staking node operators/providers, Non-validating node operators & infrastructure providers, and D'app & smart contract developers.
In the event that Ethereum's Development Team announces a confirmed Hard Fork, we will review and take the necessary actions required. Communications surrounding any Hard Forks will be delivered to users via banners within their accounts or through our General Announcements and Updates page.
The following services will be temporarily suspended during the ETH Merge. Services will resume once networks are deemed stable, following the completion of the Merge.
- Ethereum (ETH) Coin Deposits
- Ethereum (ETH) Coin Withdrawals
For further information please refer to the links below.
Need more help?
Please submit your request via Zendesk - https://coinspot.zendesk.com/hc/en-us/requests/new
or start a conversation with us via Live Chat and our team will provide full instructions and advice.