Ethereum (ETH) will move from a Proof-of-Work (PoW) consensus to a Proof-of-Stake (PoS) consensus very soon. It is true that the Merger will bring huge benefits to Ethereum, but there are risks to consider. In this context, analysts advise not to use the network on the day of the transfer. Learn about the various risks associated with the Ethereum (ETH) merger.
What are the risks of Ethereum Merger?
Coin Metrics highlighted the risks of Mergers in a recent report titled Mapping the Merger. According to this report,many things can go wrong during a network migration of this size.The report shows in particular that it could price differences on the level of DeFi protocols during the merger. The same problem can arise at the level of decentralized exchanges (DEX) and on-chain loan markets.
In addition, there is the risk of changing the order of the blocks on Ethereum (ETH) on Merger Day. Such a situation can disrupt the network and block a large number of transactions as a result. In this context, Coin Metrics advises Ethereum users to refrain from making any transactions on Merger Day. They also explain that the false merger on Goerli’s testnet did not happen quickly.
In fact, it was necessary to perform the transfer twice on the nodes for success. If this were an actual merge, network uptime would be greatly affected. Remember this mock merge was the last test before the real Merge scheduled for September 10th to September 20th.
According to Coin Metrics, many “factors that may affect the availability of Ethereumon Merger Day. It is therefore best that blockchain users do not make any transactions on the day of the event. Once the merger is complete, they can enjoy “many exciting new scalability solutions“.
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Far from dampening my enthusiasm, an unsuccessful investment in cryptocurrency in 2017 only increased my enthusiasm. So I decided to study and understand the blockchain and its many uses and pass my pen knowledge related to this ecosystem.
