The goal here is to achieve a mutual consensus through this mechanism.
Moreover, relating ‘The Merge’ with Ethereum, we can view it as a powerful engine that powers a spaceship. On the other hand, the beacon chain can be seen as a new engine with more advanced features that speed up the spaceship’s acceleration.
Understanding the concept of Ethereum switching to proof of stake (POS) makes it easier for users to stake their ETH directly from the validator’s right in the Ethereum network.
Perhaps, the validators in the Ethereum proof of stake have the computational power to validate user requests when staking ETH.
Besides this, those validators can create their blocks and validate users’ blocks.
Furthermore, proof of stake (PoS) was not implemented to improve the efficiency of the Ethereum network but also to enhance its decentralization.
Why you should consider buying ETH
Although there are some restrictions on spreading Ethereum’s network, there are high chances that it will circulate the globe after “The Merge.”
Moreover, due to a sudden rise in the value of Ethereum, “The Merge” is probably scheduled for September.
Besides this, many investors expect incredible improvements to the blockchain and layer 2. This raises the question – should I buy Ethereum now?
Here we summarized a few things that will happen to Ethereum after “The Merge.”
#1. Ethereum developers will have more benefit
Because there may be high-volume traffic after the merge, there will probably be every possibility of having over ten transactions per second (more than the frequency of transactions being carried out today).
Moreover, we realized that Ethereum developers have been working on a new concept known as sharding, and the goal is to increment Ethereum’s Mainnet scale.
#2. Its energy level will reduce
The energy used to operate Ethereum’s proof-of-work consensus mechanism is mostly vast and requires computers to solve a lot of problems before a single transaction can be verified.
Perhaps, using proof of stake that enables token holders to validate transactions will help to reduce the total energy needed for every transaction on the Ethereum platform.
#3. Stakers will have a high chance of removing Ethereum from the market
The possibility of some investors fighting to stake Ether in place of Ethereum will be very high; Ether seems to generate more revenue for blockchain users.
Unfortunately, suppose users persist in staking Ethereum. In that case, it will surely kick Ether out of the market, which will, in turn, increase the value of Ethereum, thereby diminishing the value of Ether.
On the other hand, there are also certain risks to the Ethereum network. Although there are numerous reasons to be bullish on the Ethereum blockchain and on the Ether network, some risks are involved as well.
Moreover, since the usage of blockchain is usually high when staking is paid, many users are ready to pay even higher transaction fees on the Ethereum network.
In this scenario, we can find that high transaction costs are quite a common factor on Ethereum.
Furthermore, for Ethereum to compete with other networks listed in the blockchain network, it needs to scale more than its competitors.
Perhaps, “The Merge” may not scale up the entire network because lots of investors are leveraging on the Layer 2 blockchains and other sharding that may expand some network capabilities.
#4 Become a validator if you have 32 ETH or more
Although for you to operate as a validator on the Ethereum network, you will need to have up to 32 ETH or even more value than these, there is still a possibility that you can become a validator even with lesser ETH value; this is to avoid losing your money because of high risk in cryptocurrency.
Perhaps, any validator with 32 ETH or more will have access to maintain the Ethereum network’s security.
Moreover, users with up to 17.6 ETH or more can use services like RocketPool to match the user with 16 ETH – this is entirely in their RocketPool smart contract by other stakers.
Can I still be part of the merge stacking if I have less than 32 ETH?
Yes! Once you are interested in being a validator, you can merge with other users in the Ethereum network if you don’t have up to 32 ETH. Through this process, users can quickly become validators in the network.
Moreover, since the price of Ethereum is costly, the cost of purchasing about 32 ETH should be greater than or equal to $70,000. This is quite huge for some individuals to acquire.
Meanwhile, there are certain things one can do in the process of obtaining this 32 ETH. Perhaps, this is not a piece of investment advice, though, so ensure that you do your research and know what works for you.
One can engage in “staking pools” – the staking pool serves as an intermediary for people with less than 32 ETH.
The staking rewards are usually shared among pool members in the Ethereum network, following their shares regarding the distributed ETH.
Bu using staking pools, users can use any of these top providers – Rocket Pool and Ankr.
Rocket Pool has more advantage over Ankr because it only requires lower ETH at its initial staking. For instance, only 0.01 ETH is needed for about $23 when carrying out transactions.
Also, Rocket Pool and Ankr enable the use of staker through its synthetic asset, which is popularly known as rETH. The fantastic thing is that rETH is quite tradeable.
Furthermore, users can transfer ETH to other wallets on an exchange or probably within other services that also issue split in staking rewards.
How to Transform ETH into ETH 2.0 (ticket BETH) on Binance and receive the daily yield
Have you ever thought of transforming your ETH into ETH 2.0? Moreover, this section will take you through the steps you need to change your Eth into ETH 2.0.
Here three processes are involved.
#1. Stake ETH
Process one involves the user to one-click ETH 2.0 while staking with the minor requirements and expecting a maximum result in return.
In this scenario, the user’s stake cannot be redeemed just in the first phase. It may take about two years or more for the user to expect his returns.
Also, staking ETH requires Binance to tokenize BETH, which serves as proof of stake and is usually 1:1.
#2. Rewards Distribution
The second process in transforming ETH into ETH 2.0 is the rewards distribution. Here, there is a regular distribution of on-chain rewards to every single participant in the network based on each user’s position on the BETH.
One of the ways these on-chain rewards are distributed to each user’s Spot account is in the form of BETH.
#3. Redeem ETH
In this scenario, users can redeem their ETH once their first phase has been completed. Also, they need to implement shard chains before saving their ETH.
Moreover, there is still another alternative that one can use to swap BETH to ETH on a 1:1 basis. This method will help them to receive the exact amount of ETH to the current BETH amount.
As this third process requires some permission, users from both ends need to confirm any single action before it will be approved.
How to Buy Ethereum
You can use your preferred exchange platform, if you do not have one yet you can check out our exchanges page and compare some reviews to find which exchange fits the best with your needs.
During the time of the merge, the price of sETH on FTX may increase; now is another great opportunity to buy ETH 2.0 coins on exchanges.
Written by: Narender Charan