After Bitcoin, Ethereum is a popular cryptocurrency that every investor knows globally. Its blockchain network is the second largest as it can also process numerous transactions every second. But many advancements are taking place in this asset to transform it into an upgraded system.
As per the plan, there is an advanced shift in the Ether network, i.e., PoS from PoW. This Merge can easily upgrade the asset transition and affect the price. Many investors expect a sudden price hike in ETH that will unexpectedly fall at the starting of 2024. But everyone doubts whether there will be a rise in the price or not.
Surprisingly, the price fell to 64%, which is hard to reach at the current level. In this write-up, we will discuss whether Ethereum will go back up or not. As an investor, you must know various things about the upgrade and how this upgrade will affect the crypto asset.
1. About the Merge
It is an advancement that is about to happen in the Ether network. A shift will proceed in the existing network to staking from PoW. This consensus mechanism helps in authenticating several crypto asset transactions. The upgraded system is BTC-pioneered, and is a powerful mechanism. The hope of traders is whether the new advancement will enhance the fallen ETH price, and traders are waiting for the upgrade.
In 2020, the existing PoS network, known as the Beacon chain, was introduced and it is not executed to process all the transactions. Now, it is considered the staging area and is getting ready for the shift. The merging of the current Beacon chain and mainnet will enable the complete transition.
2. Know How PoW is Different from PoS
The difference between these systems is the method to record transaction blocks in the ETH blockchain network. In the existing PoW system, miners had to solve complex puzzles for posting the blocks. But in the upgraded system, miners have a right of locking 32 randomly selected coins for developing blocks.
The more coin stakes, the chances of getting selected will be more. In both system types, the miner who wins the block in the network gets a giveaway of fees for making any transaction. The validators will also get rewards for performing activities for network security.
3. When will the Network Merge Take Place?
There is nothing fixed, but it will happen in September. Every block available on the ETH network has a number that shows how hard a miner has to try to add the changes to the current network.
The Merge event is scheduled on a random date when all the mined blocks will hit the specific number. That number is also known as the TTD. As per the developers, the TTD will reach near 15th September 2024. It is an estimated date that appears by the issuance data and blocks complexity with time.
4. Will the Cost of ETH Go Back Up?
The digital currency market is unpredictable, and so is this Merge. It is hard to predict the falling ETH price will go up or rise more than the current value. Undoubtedly, Merge is an excellent upgrade in the ETH network of this asset, and it takes years to accomplish. The primary environmental concern is that the upgraded staking system will solve.
The issuing rate of Ether will also be reduced, and it will affect its price. But there is no surety that the crypto price will hike. With this upgrade, a risk is there that this Merge can also fail or experience any issues. It is noted that the staking system will not be more secure than the Work. If you want to invest in this asset, you must know its worth in guardian.ng.
5. Will the Transaction Fees Reduce?
After Merge, the transaction fees will not be affected. The network fee is high, but future updates can solve problems. But you cannot expect these changes before 2024. Many third-party digital networks help in collaborating transactions and do processing from the mainnet of Ether.
If you are currently investing in digital currencies, you cannot expect a transaction fee reduction. It is quite possible to make any number of transactions in the network, but you must pay the fees for making transactions.
6. Will Merge Enhance the Speed of Any Transaction?
You will barely notice any change in the speed of ETH transactions after upgrading. In the current PoW system, each Ether block requires 13 to 14 seconds. But after the Merge and PoS update, it will take around 12 seconds. A minor change in the speed is available.
It is a minor improvement that will take place in the ETH network. It is hard to notice for every user and will be considered negligible. BUt using third-party digital networks, it is quite possible to see more improvement in the speed of transactions.
7. How will Staked ETH be Affected After this Merge?
All the staked Ethereum will be locked within the existing network for at least six to twelve months whenever the Merge happens. At that time, anyone who has already staked this asset can easily withdraw it with any reward they get. But if anyone has staked coins using the centralized services, they must keep checking the announcements. They need to check how they can withdraw Ether.
At the starting of 2024, the ETH price fell drastically to 64%. But people are hoping for a sudden rise after this Merge takes place. It is an advancement update of converting the PoW-based system into the staking. It will improve the network, but a few things will stay the same.
But if we talk about the ETH cost, it is hard to predict whether it will go up or not. The digital currency market is volatile, and it is challenging to understand the price fluctuation. Several changes will be noticed once the Merge happens. Every investor is eagerly waiting for this update. Everyone desires to know how it will affect Ethereum and related investments.