Brokers are preparing for The Merge: withdrawals and deposits will be suspended
The update is scheduled to end on September 15; Below are the main points about The Merge and how some exchanges, such as ProBit Global, are programming.
After years of preparation, the Ethereum merger process, called The Merge, finally began last week. The procedure began with an update on Bellatrix, which aimed to prepare A chain of lighthouses to connect.
Successfully completed, the network is now preparing for the final leg, Paris, scheduled for September 15. This will mark the end of mining proof of work on the Ethereum Blockchain and the successful completion of The Merge.
Below are the main points to help you understand what The Merge is and how it will affect trading operations at some brokers such as ProBit Global:
Changing the consensus mechanism
Today, as with bitcoin, miners on the Ethereum blockchain are paid in ETH for processing transactions, based on the intensive work of their computers, the so-called. Proof of Work (PoW). ON Connection intends to modify the consensus mechanism, from PoW to PoS (Proof-of-Stake = proof of participation), eliminating mining. Thus, network transactions will be confirmed in a sustainable way, which will automatically generate large energy savings.
Reduction of energy consumption
A reduction in network energy consumption of 99.5% is expected, as it will no longer be necessary to use thousands of miners and their high-powered computers, which require a lot of energy.
From mining to stake of ETH
in working mode Proof of stake, miners are actually simple owners of ETH, called validators. In order to act as a validator for the network, the interested party must necessarily block (put stake) at least 32 ETH. Those with the highest amount locked in the network will be selected to confirm transactions and earn ether rewards for the task.
In principle, transactions will NOT be cheaper
The update also aims to increase the scalability and security of the network and thus ensure the long-term longevity of Ethereum. At first glance, the upgrade shouldn’t lower fuel prices, but it will pave the way for it to happen.
Cryptocurrency exchanges will temporarily suspend ETH trading during the update
Some exchanges have already gone public announcing the suspension of ETH withdrawals and deposits during the merger phases. This is the case with Binance, Mercado Bitcoin, BitPreço, Foxbit and NovaDax.
Likewise, ProBit Global suspended withdrawals and deposits during the Consensus Layer (Bellatrix) update on September 6th and will do the same on September 15th, to support the upgrade of the execution layer (Paris).
What will happen after the merger?
→ If no new token is created after merging:
- ProBit Global will resume ETH and ERC-20 deposits and withdrawals as soon as possible. An official announcement will be made.
→ If the chain is split into two parallel block chains and a new token is created:
- The token “ETH” will be used for the chain. Ethereum PoS;
- Exchange users will receive the token in their ProBit Global wallets forked of the minority chain, in a 1:1 ratio, based on a snapshot of the ETH balance before the Paris execution layer update (around the time ETH mainnet block 15,540,293, or September 15). An official announcement will be made about the distribution.
- ProBit Global will support token raising forked.
We remind everyone of the importance of allowing enough time for your ETH and ERC-20 deposits and withdrawals to be fully processed before The Merge’s scheduled end dates.
About ProBit Global
THE ProBit Global it is now in the top 30 in the world list of cryptocurrency platforms, providing unlimited access to more than two million users, trading Bitcoin, Ethereum and over 800 altcoins in more than 1000 markets.
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