Getting the Ethereum Merger Right: What Changes Will It Bring?

Twitter user @yulesa used a series of tweets to explain the significance of the Ethereum merger and its potential impact.

1/21 Ethereum is about to receive a series of enhancements that will leave other blockchains (especially Bitcoin) far behind. This chain of tweets aims to reduce the asymmetry of information about what it means to merge The Merge, and to help people understand how close this will change the blockchain space.

The 2/21 merge is Ethereum’s network upgrade aimed at shifting the de facto consensus protocol from Proof-of-Work (PoW) to the energy-efficient, capital-efficient, and more secure Proof-of-Stake (PoS) consensus mechanism.

Solana Co-creation: The latest outage is caused by misconfigured validators confusing the network and unable to judge the correct fork: Jinse Finance reported that Solana co-founder Anatoly Yakovenko explained the recent outbreak of network outages in the latest interview. He revealed the cause of the outage One reason is that a misconfigured validator confused the Solana network and was unable to determine which fork was the correct one, eventually bringing the network down. Anatoly Yakovenko emphasized that a Solana network outage does not put any user's funds or program state at risk, because Solana has 2,000 different validators and about 3,400 different replicas of the network, so in the event of a serious failure, there are a large number of Backups are optional. Anatoly Yakovenko claims that as long as one of these replicas survives, the entire network can be effectively restored.

Since its launch in 2020, the Solana blockchain has seen five major outages, three of which occurred in 2022, each due to a bug in Solana's code or network. Anatoly Yakovenko believes that the current problems with Solana can largely be attributed to human error. This is still software written by humans, and Solana is quite complicated. (decrypt) [2022/10/8 12:49:29]

3/21 I hope you have learned what PoS is.

Coinbase CEO: FinCEN's new rules do not follow the correct process, we will challenge it: In response to the US FinCEN's proposed non-custodial encrypted wallet transaction reporting rules, Compound's general counsel Jake Chervinsky issued a series of tweets yesterday to criticize.

On December 20, Coinbase CEO Brian Armstrong retweeted Chervinsky's tweet and said, "I was going to tweet about the rules proposed by FinCEN and the Treasury Department. But Jake Chervinsky has summed it up very well. It The right process wasn't followed and we're going to challenge it."

According to previous reports, Jake Chervinsky believes that FinCEN's new rules will impose a huge burden on VASPs, their customers and society as a whole, and may violate constitutional rights, but will not bring any benefits to the government or law enforcement in general. [2020/12/20 15:52:04]

If you don't know what PoS is, and still don't understand why the economic reward mechanism of PoS mechanism is more consistent than PoW, you can read this post.

Voice | Vice President of Tencent Financial Technology: The implementation of blockchain electronic licenses faces challenges such as ensuring the validity and correctness of on-chain information: On January 14, the "Chief Plan" of Tencent Financial Technology Media was held at Tencent Headquarters in Beijing. At this meeting, what kind of challenges are faced with the implementation of blockchain electronic certificates? Zheng Haojian, vice president of Tencent Financial Technology and head of corporate financial business, said that first, it is the legality of the certificate itself; question. He also said that in addition to these three, the most important point is how to ensure the validity and correctness of the information on the chain of electronic certificates, which is neglected by many blockchain companies. Zheng Haojian also said that Tencent also appeals to all institutions interested in the blockchain to explore together. There are many challenges here, including the challenge of the accuracy of assets on the chain. Blockchain should not only belong to a certain enterprise, it is a technology for the whole industry in the future, and we have the responsibility to make it better. (Daily Economic News) [2020/1/15]

4/21 First and foremost, it is important to state that your experience with Ethereum as a regular user will not change. The merger is an upgrade of the protocol layer of this blockchain, the data/application layer will not be affected.

Voice | Li Dongrong: Attention should be paid to the popularization of blockchain knowledge to guide the public to correctly understand: News on November 25th, the second Guangdong-Hong Kong-Macao Greater Bay Area co-sponsored by the Guangdong Province Local Financial Supervision Administration and the Financial Research Institute of the Development Research Center of the State Council The Financial Development Forum was held on November 24 in Zhuhai, Guangdong. At the meeting, Li Dongrong, former vice-governor of the People's Bank of China and chairman of the Internet Finance Association of China, delivered a keynote speech.

Li Dongrong said that blockchain technology, as an important representative of the new generation of information technology, has great potential and broad space in driving financial technology to develop the digital economy. In addition, he also pointed out: use blockchain and other information technologies to strengthen the construction of regulatory technology capabilities, so as to achieve no dead ends in the system, full coverage of risks, and zero blind spots in supervision. To effectively strengthen industry self-discipline, in addition, we should also attach importance to carrying out financial education activities to popularize blockchain knowledge, guide the public to correctly understand blockchain technology, enhance risk awareness and participate in the ability to supervise the society. [2019/11/25]

5/21 This means that every dApp, protocol or account that existed before the merger and in Ethereum will continue to exist and function as before.

In addition, the transaction layer management passed by the EIP1559 proposal is already in operation, and the merger will not change it in any way.

The 6/21 merge will only affect validators, who will take over the role of miners and agree on which transactions are included in the blockchain's canonical history.

7/21 PoS is already a reality, it’s just not internalized yet.

The Beacon Chain, also known as the Eth2 network, has sufficiently done the research, detailing all the heavy lifting of sifting out and developing a new consensus mechanism.

The 8/21 Beacon Chain is a completely independent blockchain network running a PoS consensus layer.

It runs in parallel to the current Ethereum mainnet and only handles the consensus layer of the protocol, leaving the data and application layers empty.

9/21 It was necessary to keep the PoS chain isolated from the main network so that the risks created by the new consensus mechanism would not affect the Ethereum main chain during its deployment.

Since its launch in November 2020, the Beacon Chain has been running smoothly without any issues.

10/21 The new Ethereum PoS consensus layer has about 120,000 validators, who have pledged a total of about 3.8 million ETH (about 3.3% of ETH's circulating supply), and it can now build a good Lindy effect. The Fang core team can therefore safely merge it with the mainnet.

Lianwen Note: The Lindy effect means that for things that will perish by themselves, the expected value of the remaining time will decrease every time it exists for one more day; The expected value of the remaining days will increase.

The changes required on 11/21, including the current Ethereum network transition to a PoS consensus mechanism, is a protocol integration between data/applications on the existing consensus layer:

Include data history block

Propose new blocks

Announce/finalize the block header-zce value

12/21 is nothing more than a minor adjustment for both Eth1 and Eth2 users, and three beacon chain users have demonstrated executing Eth1 transactions in an Eth2 environment.

Teku

Lighthouse

Prysm

13/21 The Berlin and London upgrades will be completed in 2021 and the current expectation is that we will be ready to "merge" sometime in late Q4 2021 or early Q1 2022.

The 14/21 "Merger" will implement the second encrypted economic upgrade of ETH as an asset, and put years of encrypted economic research and development results into practice, which will bring super currency value to ETH.

15/21 With PoW withdrawing from the historical stage of Ethereum, ETH will experience "cliff adjustment The Cliffening", and its circulation will be reduced by about 90% when it is "merged".

For comparison, it takes 12 years for Bitcoin to adjust its circulation through "halving" to achieve such a reduction.

16/21 EIP1559 proposal upgrade and PoS mechanism will work together to make ETH a deflationary asset.

17/21 While it may sound like magic, you don't need the guts of a Vanuatu diver to make a "precipice adjustment".

In the PoS mechanism, bad actors are punished.

18/21 In view of the reduced willingness of participants to do evil, despite the high level of network security, the positive enhancement of the network (block issuance difficulty) will be reduced.

19/21 In addition to Ethereum has become the public chain with the highest asset value, it is also the public chain with the most active-zce development activities. The next upgrade will make ETH a high premium storage asset.

20/21 Thanks to all the community members who posted the newsletter to keep users like me informed, @evan_van_ness, @benjaminion_xyz, @dannyryan.

21/21 For more detailed knowledge about the merger, please click to view. This thread of tweets was inspired by the articles in it.

Written by: Twitter user @yulesa, software engineer, smart contract enthusiast

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