In the wake of the mainnet's merger with the Beacon Chain, proof-of-work on the Ethereum blockchain will be replaced by proof-of-stake. The Merge is approaching in less than 10 hours, signaling the beginning of Ethereum's long-awaited switch from proof-of-work (PoW) to proof-of-stake (PoS). For the larger cryptocurrency space, there are many things to think about.

what does the Merger mean?

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As its execution layer fuses with the new PoS consensus layer known as the Beacon Chain, the Ethereum blockchain will move away from its energy-intensive PoW consensus method.

In December 2020, The Beacon Chain went online, allowing ecosystem players to deposit or "stake" ETH to become the new network validators, displacing PoW miners who had previously put in the effort to process transactions, produce blocks, and protect the network.

The Merge will, in its most basic version, save 99% of the energy currently used by the Ethereum network while also enhancing its scalability, security, and sustainability.

A new era for the blockchain network of smart contracts will begin when Ethereum's mainnet (PoW) and the Beacon Chain (PoS), which have been operating independently, merge. Hence, the name. As the new consensus mechanism takes control of the network, all of Ethereum's transaction history will be transferred.

After the Merge, who is in charge of network upkeep?

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Users who may stake a total of 32 ETH are qualified to become individual validators of the Ethereum Beacon Chain, as was previously stated. Validators are tasked with randomly producing blocks, validating user transactions and blocks produced by other validators on the network.

Users can also participate in centralized or pooled staking pools by staking smaller amounts of ETH, which will earn them a percentage of the benefits for validating and maintaining the network. For individuals who want to take part in the network's new consensus mechanism, there are a variety of staking choices to think about.

According to a recent research by blockchain analytics platform Nansen, 65% of the circulating ETH is liquid and 35% is illiquid, making up little over 11% of the total amount staked. There are 80,000 depositors and 426,000 validators overall, yet a tiny number of corporations control a substantial amount of the staked ETH.

Nearly 30% of the ETH that has been staked comes from Coinbase, Kraken, and Binance, three large cryptocurrency exchanges. A fifth unidentified group of validators holds 23% of staked ETH, while Lido DAO, the largest Merge staking provider, accounts for the majority of staked ETH with a 31% share.

The typical Ethereum user and ETH owner should not fret about losing their money or changing their chosen wallets prior to the Merge. All of the money in wallets is still available and secure since the Ethereum blockchain's entire history is carried over during the changeover.

Most crucial, avoid falling victim to fraud. Cointelegraph has created a list of the three most prevalent methods that bad actors are attempting to take advantage of the Merge event. It promotes phony airdrops, fraudulent upgrading schemes, and fraudulent staking pools. In order to receive fresh tokens, you don't need to send ETH or upgrade your wallet.

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