HomeAltcoinD-7 What The Future Holds For Your ETH Before The Merge ?

D-7 What The Future Holds For Your ETH Before The Merge ?

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The Ethereum battle is about to start; in a few days, the network will switch to Proof of Stake (PoS). When faced with this change, some miners are thinking of creating a fork that keeps the Proof of Work (PoW). It is challenging to navigate between the administration of old tokens and new ones. See what happens to your ETH tokens together.

The long-awaited Ethereum update is called The Merge.

By altering its consensus mechanism, the Ethereum network will receive a significant update. In fact, Proof of Stake will replace Proof of Work in Ethereum.

“The Merge” is the name given to this multi-step, complicated shift. On September 6, the Bellatrix hard fork on the beacon chain will be deployed, marking the start of this (Ethereum chain secured by PoS). Recall that the beacon chain is a blockchain that develops concurrently with Ethereum and whose primary goal is to guarantee consensus in proof of stake.

What Will happen to ETH after the merge ?

Let’s establish one thing up front. There is no new Ethereum token introduced as a result of the Merge and the move to proof of stake. Your ETH will so continue to be ETH.

As a user, nothing will need to be done on your end. Take a seat! Bring a snack, and take in the show that will serve as the transition! You won’t need to do anything if you store your ETH on self-hosted wallets or exchange networks like Binance or Coinbase.

Remember that! In fact, scam artists could use this transition to attempt to convince you to purchase ETH 2.0 tokens that don’t actually exist. In a same vein, you won’t need to transfer money to a specific address in order to get ‘new’ ETH tokens. Similar holds true for ETH staked on the beacon chain; you cannot directly reclaim them. Beginning in 2023, the unlocking procedure will be phased.

POW VS POS: IS AN ETHEREUM FORK ON THE WAY ?

Several well-known miners have voiced reluctance to switch to Proof of Stake as the crucial deadline draws near. As a result, some people have proposed the concept of forking Ethereum in order to keep the Proof of Work. a scenario that is highly likely to occur. In fact, there are several discussions going on regarding this fratricide between Eth 2.0 and EthPow.

In the case of a fork, the ETH token will act as the chain’s Proof of Stake representation, and a new currency, such as ETHPow, may appear. Depending on the amount of ETH held on the chain under proof of stake, this ought should be dispersed automatically to addresses on the new chain in practice.

Exchanges will independently discuss how to distribute tokens to customers that have ETH on their platform.

Additionally, in order for the new currency to be traded on various platforms, as Binance notably highlighted, it must successfully complete the standard registration process. The duration of the process might range from a few hours to a few days.

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