Ethereum Launches Proof-of-Stake-based Public Merger Testnet

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Ethereum
Ethereum Launches Proof-of-Stake-based Public Merger Testnet

Following two years in the making, Ethereum has introduced the first public testnet for the full Proof of Stake upgrade, dubbed the Merger. The takeover eliminates miners from having any influence on the Ethereum network. Stakers will validate the Merger by depositing 32 eths.

Elements and Vantage Point of the Testnet

There are already 2.3 million testnet ethers held in deposit by 72,000 validators on the new network. The Beacon chain eth network has 8.7 million eths staked by 272,000 validators, worth $33 billion. This indicates a lot of enthusiasm as the ethereum community gears up for one of its most significant upgrades.

The ethereum network will transition from miners to validators in a few months, as validators take over the role of miners. The testnet cuts ethereum’s environmental effect by 99.9 percent by combining available technologies. It also lowers the inflation rate from around 4% per year to between 0.2 and 1% each year.

Some investors call it thirdening in contrast to halving. Because the supply will be decreased by 3/4 or 75%, ethereum’s quantity will become a lot rarer. The shift itself does not add any additional capacity. However, it makes data sharding easier, allowing for more efficient second-layer solutions.

From the user’s standpoint, nothing will change. However, from a governance standpoint, it’s unclear whether stakers would be more eager to boost base capacity than miners. For miners, it’s a straightforward equation: less capacity equals greater fees and more money.

For stakers, the pools are usually exchanges rather than specialized miner-operated organizations. As a result, these exchanges have an incentive to increase client numbers since doing so will enhance customer experience.

The Merger will indirectly improve ethereum’s scalability at the base layer. However, for smart contract-based second layers to achieve proper capacity, ethereum now needs more from its underlying blockchain.

Ethereum Incorporates the Kintsugi testnet

The Ethereum Kintsugi testnet has been launched as a step toward replacing its Proof-of-Work consensus mechanism with Proof-of-Stake. The Kintsugi paves the way for Ethereum 2.0’s “merge.” The mainnet and beacon chain merge is expected in Q1/Q2 2022.

The upgrade will combine Ethereum’s current mainnet, which manages transactions, with Ethereum 2.0’s beacon chain, which handles staking. According to a November report, over 8.4 million ETH has been staked on Ethereum 2.0’s beacon chain.

Finally, Ethereum will integrate Kintsugi’s feedback into the client software and specs. Following that, ethereum developers will conduct the last series of testnets. Following the merge, a full Ethereum client comprises a Beacon/Consensus node and an Execution engine run by an existing ETH 1 client. These layers have their API connections and can go through each other to share data.

Wayne Jones

Wayne is an all-rounded cryptocurrency writer who has written for several publications in the fintech industry. Having graduated from the University of Essex Colchester, he developed a passion for blockchain technology and has been curious about how the blockchain can modify the traditional financial industry.