Merge, or the transition from the proof-of-work (POW) blockchain to a more efficient and energy-efficient proof-of-stake (POS) blockchain, is divided into several stages, which the first,(Bellatrix upgrade) begins today at 11:34:47 UTC.
Bellatrix assumes the activation of the POS (Beacon chain) test blockchain, and this is to be followed by the Paris upgrade, which will take away the blockchain's reliance on ETH digging within the POW and will mark a complete transition to the new infrastructure. This will take place when the appropriate level of blockchain synchronization is achieved. According to the developers, the procedure is expected to take place between 10th-20th of September.. What could await investors at this historic moment?
73% of ethereum threads ready for Bellatrix
According to Ethernodes data, 72.8% of ETH threads (nodes) are ready to enter the Bellatrix upgrade. This refers to large operators such as geth, erigon and beus, which are achieving compatibility to integrate into the Beacon chain.
Ethereum co-founder Vitalik Buterin and lead developer Tim Beiko published tweets urging the remaining 27.2% to synchronize.
Binance imposes restrictions on deposits and withdrawals
The Binance exchange announced on Monday that is planning to suspend the acceptance and withdrawal of ethereum (ETH) and wrapped ethereum (WETH) deposits to the Arbitrum (ETH), OP (ETH), RON (WETH) networks starting today at 02:00 UTC.
The suspension of transactions on the aforementioned networks is expected to last until the Merge is completed. However, according to Binance, the restrictions are aimed at "securing the allocation of forked (forked) tokens when splitting the blockchain." Therefore, the aforementioned restrictions are most likely nothing more than a safeguard to prevent the exchange's customers from losing their funds.
ETH miners at risk
Andy Long, CEO of Bitcoin miner White Rock, considers that the upcoming Merge will force PoW miners to look for other PoW token alternatives. It could force the industry's profitability even lower and increase the difficulty of mining. The transition of the token to blockchain POS would mean the end of ETH mining. A good alternative may be ethereum classic (ETC), which is still popular among miners. However, a decline in margins may be inevitable.
Processor and graphics card prices have been falling for several months now after low token prices forced many miners to reduce or stop mining. This, in turn, has reduced demand for similar devices.
Rafał Tworkowski, Junior Market Analyst, Conotoxia Ltd. (Conotoxia investment service)
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
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