Coinomi
Image default
Regulations

Here’s why you shouldn’t use Ethereum on D-Day!

Ethereum (ETH) will, very soon, move from Proof-of-Work consensus (PoW) to Proof-of-Stake consensus (PoS). It is true that the Merge will bring huge benefits to Ethereum, but there are risks to consider. In this context, analysts advise against using the network on the day of the transition. Learn about the various risks associated with the Ethereum (ETH) merger.

Ethereum The merge

What are the risks associated with the Ethereum Merge?

Coin Metrics has indicated the risks associated with Merge in a recent report entitled Mapping Out The Merge. According to this report, “ a lot can go wrong during a network migration of this magnitude. ”In particular, the report points out that there could be price differences at the level of DeFi protocols during the merge. The same problem can arise at the level of decentralized exchanges (DEX) and on-chain loan markets.

In addition, there is a risk of changing the order of the blocks on Ethereum (ETH) on the day of the Merge. Such a situation can disrupt the network and lead to the blocking of a large number of transactions. In this context, Coin Metrics recommends that Ethereum users refrain from making any transactions on the day of the Merge. They also explain that the fictitious merger on the Goerli test network did not happen quickly.

Indeed, it was necessary to make the transition twice on the nodes to make it successful. If it were a real merger, the network’s uptime would have been significantly disrupted. Recall that this fictitious merger was the last test before the actual Merge scheduled between September 10 and 20.

According to Coin Metrics, there are many “ factors that may adversely affect the availability of Ethereum ”the day of the Merge. It is therefore preferable that blockchain users do not make any transactions on the day of the event. Once the merger is complete, they will easily be able to enjoy a “ host of exciting new scalability solutions ».

Receive a digest of the news in the world of cryptocurrencies by subscribing to our new service of newsletter daily and weekly so you don’t miss anything essential Cointribune!

Luc Jose Adjinacou avatar
Luke Jose Adjinacou

Far from having cooled my ardor, an unsuccessful investment in 2017 on a cryptocurrency only increased my enthusiasm. I therefore resolved to study and understand the blockchain and its many uses and to relay information related to this ecosystem with my pen.

Related posts

Axie Infinity (AXS), a Ponzi pyramid or not?

Edward Soriano

Crypto Transactions Are “Illegal Fundraising”: China

Edward Soriano

Crypto: The tension is growing between regulators and companies

Edward Soriano