Developer Tim Beiko clears up some misconceptions about the long-awaited Ethereum 2.0 network merger.
Some believe commissions will immediately drop on the main network after the Merger.
Will 'stakers' be able to withdraw their 32 ethers (ETH) as soon as the network merges? Tim Beiko answers this question.
There have been a lot of talks lately about the long-awaited merge (The Merge) of the current Ethereum network with the new blockchain called Ethereum 2.0. Many have had misconceptions about what will happen to the Ethereum network after the merge. The misunderstanding is what Ryan Sean Adams, CEO of investment company Bankless, talked about on the Bankless YouTube channel. In this educational program, the entrepreneur discusses topics related to the world of cryptocurrencies.
In the interview published last June 15, Bankless channel members, including Ryan Sean Adams, talked to Tim Beiko, Ethereum developer, about misconceptions about the new Ethereum 2.0 network merger. Below, we mention five misconceptions and describe how Tim Beiko responded to them.
1. You can withdraw your stake right after the Merger
Beiko responded that this is incorrect, as the Merger is transitioning from Proof of Work (PoW) to Proof of Stake (PoS). The developer adds that a new network update is needed before withdrawing the "staked" assets because the merging is "the most complicated change we've made to the network, and we want to limit ourselves as much as possible to ensure it goes smoothly," the developer mentioned.
After the Merger, the next update will be the one that will allow withdrawals of assets at stake. In other words, they will still be locked after the change. Developers didn't give more information on when this new update will be released.
2. The Merger will reduce fees
As mentioned by Adams, there is a bit of truth to this idea. But he explains that the switch from PoW to PoS is not what will directly reduce the transaction fees.
Instead, the Ethereum development team's idea to reduce transaction fees is rollups. These technological implementations allow executing multiple transactions as if they were one transaction, increasing the network's capabilities in processing transactions per second and reducing the fees paid, Beiko mentions.
He adds that they will bring another series of improvements with which they are also starting to work.
3. The Merger will increase ETH issuance
According to the CEO of Bankless, he has heard from specific individuals who think that the Merger will boost the rate of ETH issuance and circulation of this coin.
It happens exactly the opposite of what users anticipate. Once it goes to proof of participation, it is all set for the amount of ETH burned (due to the proposed EIP-1559 that is already active) to exceed the amount of ETH issued.
Thus, Ethereum will become a deflationary monetary system. Its cryptocurrency's circulation will reduce as time passes.
4. Users will have to update their applications after the Merger
The developer responds that stakers or infrastructure providers will need to do some things after the Merger. You can find the entire list on the official Ethereum blog. But Beiko adds that if you only use the network to transact and deploy Smart Contracts, you won't need to do anything after the Merger.
5. You need 32 ETH to run an Ethereum node.
In response, the expert clarifies that there are two categories of nodes in the Ethereum network, but only for validator nodes, which are the ones that produce blocks, you need the 32 ETH.
Tim compares each of these blocks as a lottery and the 32 ETH put into staking as the tickets to potentially produce the next block. He adds that "running a node" means verifying that the blocks and transactions these validators create are valid.
On the other hand, the developer points out that users who want to make sure that the blocks produced by the validators, which propagate on the network, are correct will be able to do so for free. You can do this by downloading the consensus layer client and the execution layer client, running it, and then synchronizing it with the blockchain.
To do this, you just run a non-validating public node, "as if you were voting in local elections as if it were a public good and a check on power," Ryan concludes.
Recently, Ethereum developers announced the new Glacier Grey update, which will make the difficulty bomb go live on the network in mid-September, the first step in merging the Ethereum network with the Ethereum 2.0 network.