The Merge is a major upgrade to the Ethereum blockchain. Once it is activated, the Proof of Work (the consensus algorithm that operates on the network) will be replaced by the Proof of Stake. The project team has been preparing for this transition for 7 years. The estimated date of launch is 15 September 2022.

The Proof of Stake (PoS) protocol has a number of undeniable advantages over Proof of Work (PoW). It is more cost-effective, has higher transaction speeds and the potential for scalability.

In PoS networks, the principle of staking works. Compared to mining applied to PoW blockchains, it is much more energy efficient. The staking mechanism does not require the purchase of special equipment with high computing power and huge energy costs, without which mining is not possible.

Once Ethereum switches to PoS, the miners will be out of the game. They will be replaced on the network by validators. The Merge, according to developers’ expectations, will reduce power consumption on the network by more than 99.9%. According to analysts, Ethereum has every chance of becoming the world’s No.1 cryptocurrency. And overtake Bitcoin, which has also rolled out a Taproot updаte in 2021, in terms of key metrics.

The next major event for Ethereum after this updаte will be the Shanghai hardfork. Its main objectives will be:

• Upgrading the EVM (Ethereum virtual machine);
• Increasing the scalability of the network;
• Improvements to the withdrawal mechanism for earning cryptocurrency on staking.