Is the Ethereum merger a good thing? Is the Ethereum merger good or bad?

Ethereum is the second most valuable blockchain after Bitcoin and ranks first in NFT transaction volume. But that doesn’t mean it’s fully optimized, the Ethereum merger is all about making the network better. The Ethereum merger will see the blockchain move from a proof-of-work consensus mechanism to a proof-of-stake. This merger means ETH holders will work as validators rather than energy-intensive computers, creating a more efficient blockchain and reducing its carbon footprint, and this merger is just part of an overall upgrade. So is the Ethereum merger a good thing? Everyone wants to know whether the Ethereum merger is good or bad? Let me analyze it for you below.

Is the merger of Ethereum a good thing?

Regarding whether the merger of Ethereum is a good thing, there are several opinions as follows:

1. Ethereum 1 will not be abandoned.

In the original design, it was indeed mentioned that ETH1 would be deprecated using a difficulty bomb, but in the current "consensus layer + execution layer" route, ETH1 and ETH2 are merged, and are merging Previously, all NFT cryptographic tokens, chain state history, and DeFi applications will continue to exist.

2. There will be no forked coins or hard forks.

Because the conversion to proof of equity has been a community consensus from the beginning, there is no problem in holding ETH. There is no need to upgrade ETH tokens to new ETH tokens for at least 5 years. So, now various ETH2.0 tokens and so-called testnet tokens are all P-games, no, no, no...emphasized three times.

3. There will be no collapse when millions of ETH pledges expire.

Many people will assume that there will be huge selling pressure due to the expiration of ETH pledges-----Will those who pledged when the value of 32 Ethereums was only 1WU want to make a profit? ?

No, the first merger will not unlock ETH, but after the hard fork after the merger starts (about 6 to 8 months), and ETH is not unlocked all at once, but queued up to be unlocked. , only 1125 people can unlock it every day, which means that the unlocking process takes a year, and only a maximum of 3.8W ETH flows to the market every day. This does not include the rate of return from continuing to pledge------you need to know the future The staking yield is likely to continue to increase.

Is the Ethereum merger good or bad?

Regarding whether the merger of Ethereum is good or bad, first of all, everyone should know that this ETH has a strong "goodwill" and IP effect, and developers and users are more willing to use the Ethereum network. At the same time, the market value of Ethereum is nearly 10 times higher than the market value of Solona. At the same time, the value of Ethereum is no longer just as an ICO issuance platform as it was back then, but it supports the DeFi ecology, the GameFi ecology, and the foreseeable web3.0 ecology and the Metaverse ecology.

Under this current situation, the valuation of Ethereum by the PQ=MV theory is extremely one-sided and distorted. Therefore, we must put forward a more “compatible” valuation theory based on the future development of the entire industry. At the same time, because Ethereum has formed a very deep moat in terms of decentralization and security during its long-term market testing process.

If other public chains want to gain DeFi market share, they have to walk on two legs: on the one hand, cross-chain Ethereum and let the leading DeFi projects deploy cross-chain; on the other hand, they copy the same complete Ecology, and obtain all aspects of liquidity in an incentive manner, which is commonly known as "exchanging funds for space and time".

Similarly, the emergence of DeFi and web3 will also bring about breakthrough growth in the valuation of Ethereum, instead of just being regarded as a consumer product with means. At this time, how Ethereum is valued depends on what shape the entire industry will take in the future.

The above content is the editor’s detailed elaboration on the two issues of whether the merger of Ethereum is a good thing and whether the merger of Ethereum is good or bad. Although Ethereum still uses Proof of Work, its new mechanism Proof of Stake (PoS) currently runs in parallel with it on the Beacon Chain. The chain is responsible for creating new blocks, validating them and rewarding validators with ETH to keep the network secure without using smart contract functionality. Mainnet will enable the new network to run smart contracts in a proof-of-stake system and include the complete history and current state of Ethereum. This is to ensure a smooth transition for all ETH holders and users to eventually come together.

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