Ethereum Merge Aftermath: Here’s How the Upgrade Affects Regular Users

Ethereum Merge Aftermath: Here

The long-awaited Ethereum update, known as “The Merge”, has finally been completed, switching the Ethereum network from an energy-intensive proof-of-work consensus mechanism to proof-of-stake – a promise that has finally been fulfilled. years to come. The new upgraded network, dubbed “Ethereum 2.0”, is expected to make the crypto way more environmentally friendly as well as making transactions faster and cheaper sometime in the future. That said, let’s take a look at what this means for crypto investors and their investments.

Is there anything I need to do on my end to get ready for Ethereum 2.0?

Well, no. The merger will not affect the funds of the holders. After the merger all funds will transfer and Ether will still appear as ETH in users’ wallets.

Are mainnet deposits and withdrawals back online?

Several crypto exchanges had announced a temporary pause on ETH and ERC-20 token deposits and withdrawals until the merger was completed, which has now been lifted. Services such as ETH margin trading staking have also been reinstated and should function as they did during the pre-merger.

Will Switching to Proof-of-Stake Mean Faster Transactions on the Ethereum Network?

Many users are optimistic that the move to proof-of-stake will speed up these lagging transactions. Unfortunately, that doesn’t happen. Readers will do this, directly from the Ethereum website itself Find a passage Stating that “while there will be some minor changes, the pace of transactions will remain mostly the same” after the merger. Those changes referred to relate to the speed at which blocks are added to the blockchain. At Proof-of-Stake, blocks are generated roughly 10 percent faster. A nice benefit indeed, but not enough to be noticed by users.

Will the move to proof-of-stake reduce Ethereum’s notoriously high gas fees?

Another assumption that goes hand in hand with expected faster speeds is cheaper gas or fees for users. Again, unfortunately not. Gas fees are calculated relative to network capacity, and moving to proof-of-stake will not increase Ethereum’s capacity. So gas charges can be higher when traffic is congested.

What’s next for Ethereum after the merger?

The next goal of Ethereum developers is to introduce a process known as sharding, which will split the main blockchain into smaller, more efficient chains. You can think of sharding as Ethereum’s transformation from dirt road to interstate highway. Once live, speeds will be faster and those pesky fees will likely be reduced. It will also reduce the amount of data validators have to store on their machines, meaning they can operate using laptops rather than a bank of expensive computers.


Cryptocurrency is an unregulated digital currency, not legal tender and subject to market risk. The information provided in the article is not and is not intended to constitute financial advice, business advice or any other advice or recommendation of any kind offered or endorsed by NDTV. NDTV shall not be liable for any loss arising from any investment based on any perceived recommendations, estimates or any other information contained in the article.

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