What happens to Ethereum in “The Merge”?

What happens to Ethereum in “The Merge”?

The Merge, which is an important upgrade to the Ethereum network, is scheduled to take place at block 58750000000000000000000. It is expected to take place on September 15th. LiteBit will support The Merge. There is no downtime expected for Ethereum.

What is The Merge?

The term “The Merge” refers to the merging of the current Ethereum blockchain with the future one (Ethereum 2.0), which is based on proof-of-stake rather than proof-of-work. After the merge, transactions on the Ethereum blockchain will be processed and validated by stakers rather than miners. This fits in with the ideal of low energy consumption.

The Merge is discussed heavily since it will reduce Ethereum’s energy consumption by ~99.95% according to their team. You can find an extensive explanation on the Ethereum website: https://ethereum.org/en/upgrades/merge/

There are some misconceptions going around we would like to address. The Merge will not reduce gas fees or improve processing times. There are new upgrades planned that will improve that later on.

What do I need to do to prepare for The Merge?

If you hold Ethereum in your wallet, you do not need to do anything before The Merge. Your funds will still be accessible after The Merge.

We will temporarily pause all withdrawals and deposits for ETH and all ERC-20 tokens on September 15th, between 6.00 and 8.00 AM. Because the exact timing depends on the actual hashrate, the time is not set in stone and we may need to start earlier or delay this. You can find the latest status on our status page: https://status.litebit.eu/

We will keep you updated on our Status Page during said maintenance.

Please be careful for scams that are telling you to take action. Do not send your ETH funds elsewhere “to upgrade to ETH2”, this is a fraud.

Does my wallet address for Ethereum change?

No, there is no impact on your wallet addresses.

Will there be two Ethereums after The Merge?

At LiteBit we only plan to offer one Ethereum listing – after The Merge ETH1 and ETH2 are merged thus there is only one official Ethereum. There are rumours going around (https://www.coindesk.com/business/2022/08/15/miner-chandler-guo-repeats-support-for-ethereum-fork-post-merge/) that some current miners may want to “keep the old chain” or even fork new tokens, but those chains, if there were to be any, are not officially affiliated with Ethereum.

Will LiteBit support new forked tokens?

The Merge could potentially lead to new forked tokens. LiteBit will evaluate the support for these tokens if that happens. It is your responsibility to make yourself aware of – and determine how to deal with – upcoming forks. There is no guarantee that we will support them. We may, in our reasonable discretion, decline to support either or both branches of a fork. The same goes for any potential air drops.

Does anything change for Ethereum Classic?

Ethereum Classic is a stand-alone blockchain that was forked from Ethereum a long time ago. ETC is therefore not affected by The Merge and will not move towards proof-of-stake.