Ethereum developers have announced that they are deploying the Ethereum Merge on its blockchain on September 19, 2022 (based on transcript from a conference call). The news has been received positively by the market, which led to a rally in ETH market price. This has been a long awaited event, which will consolidate the beacon chain with the main network to transition Ethereum’s blockchain from PoW (Proof-of-Work) to PoS (Proof-of-Stake).
There have been doubts about the merge since it was first delayed in the summer of 2022. Ethereum has a known history of delaying projects, with market panic when the developers cannot deliver on time. The expectations are sometimes too high for even what the developers can accomplish. When the deliverables do arrive, it usually turns sentiment back to bullish as was the case with EIP1559.
Before the merge can become a success, there are still some hurdles to clear. Tests are underway on testnets (e.g. Ropsten) to make sure that the protocols work properly. There are still major tests that will be conducted on the Sepolia and Goerli test networks. Once these chains have been transitioned successfully without much issues to PoS, then the next step is the Ethereum mainnet. This aims to improve the network to scale the number of transactions and lower fees for users.
Although a date has been set for the merge, it is not final. If there are problems during testing that are serious enough to address, then this could lead to further delays. The hope from ETH HODLers and investors alike is for a successful merge to occur in order to increase Ethereum’s value.
Disclaimer: The information provided is for reference and educational purposes only, and is not financial advice. Always DYOR to verify information.