The Ethereum war is brewing – The net Ethereum (ETH) it will happen proof of stake (PoS) in a few days. Faced with this transition, some mining companies are considering creating a fork holding the Work test (PoW). Between managing old and new tokens, difficult to navigate. Let’s see together what will happen to your ETH tokens.
The Merge: the long-awaited update of Ethereum
The Ethereum network will experience a important update changing their mode of consensus. In fact, Ethereum will ditch Proof of Work in favor of Proof of Stake.
This complex transition carried out in several stages has been called “The fusion”. Is will start on September 6with the deployment of hard fork Bellatrix on the beacon chain (Ethereum chain secured by PoS). As a reminder, the beacon chain is a blockchain that evolves in parallel with Ethereum and whose sole mission is to ensure consensus on proof of stake.
The Fusion will continue with the deployment of the Paris Update on the Ethereum mainnet, Between September 10 and 20 Following. Once the Paris update is released, it will take 12 minutes for Ethereum to switch to consensus mode.
As this historic event approaches, there are many questions regarding token management. prior to, during Y after the transition.
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No new token planned so far
First of all, let’s make a point clear. the fusion and transition to proof of stake do not introduce no new tab for Ethereum. Therefore, your ETH will remain ETH.
as a user, no action is required on your part. Sit down ! Take something to snack on, and enjoy the show that will be the transition! Whether you have your ETH in wallets self-hosted or on exchange platforms, such as Binance or Coinbase, you will not have no action bring.
Keep that in mind! In fact, scammers could take advantage of this transition to try to get you to buy ETH 2.0 tokens, when they don’t exist. Equally, won’t take do not send funds to an address to allegedly obtain new ETH tokens. The same goes for ETH staked on the beacon chain, you will not be able to retrieve them directly. The unlocking process will be staggered and will start in 2023.
PoW vs PoS: soon the birth of an Ethereum fork?
As the fateful date approaches, a number of prominent miners have expressed their reluctance to move to Proof of Stake. Consequently, some have floated the idea of creating a ethereum forkthat would keep the Work test. A situation that is very likely to happen. In fact, many debates are raging around this fratricidal war between Eth 2.0 and EthPow.
In the event of a fork, the ETH token will represent the Proof-of-Stake chain and a new token: for example, ETHPow may arise. In practice, this should be automatically distributed to addresses on the new chain, based on the amount of ETH held on the chain as proof of stake.
For their part, the exchanges will communicate individually about the distribution of tokens to users who have ETH on their platform.
Furthermore, as Binance explained in particular, the new tab will have to pass regular registration process to be able to be traded on these platforms. The process can take between a few hours and a few days.
While waiting for The Merge, the Ethereal Foundation decided to quadruple the amount of your program bug bounty. In this case, a bug affecting The Merge may report up to $1 million to the person who discovered it.
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