What’s Post-Merge World be Like?

October 5, 2022

Everything you need to know about the ETH merge

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The Ethereum merge happened 3 weeks ago! (Sept. 15, change it before posting)

But what’s next?

Here’s how the merge will change crypto:

1. What is Ethereum Merge?

The merge means the upgrade for Ethereum’s network from the original proof-of-work (PoW) mechanism to proof-of-stake (PoS).

2. Ethereum merge’s biggest bonus, is to reduce Ethereum's energy consumption by 99.95%.

The merge makes the core infrastructure of Ethereum greener.
It also leads to a more scalable network, gradually.

3. What will happen after the Merge

@VitalikButerin tweeted the roadmap for where Ethereum protocol development is at and what's heading to.

3.1 The merge

Full transition from PoW to PoS.

3.2 The surge

It will introduce Sharding on Ethereum, which breaks up the datasets into smaller sets.
Scalability of rollups will increase massively.

3.3 The verge

Verkle trees are introduced to optimize storage on Ethereum.
They help reduce node size, boosting scalability.

3.4 The Purge

With EVM simplification track, historical data and technical debts are eliminated.
It streamlines storage, reducing network congestion.

3.5 The Splurge

More smaller upgrades to make the network run smooth will follow up on the above 4 updates!
Check out the full roadmap diagram here:
https://twitter.com/VitalikButerin/status/1466411

4. What are web3 notable people saying?

@chriscantino said L2 innovation is the next big thing in web3 post-merge.
L2 innovation is happening at a breakneck pace, and adoption is rocketing.But problems like high gas fees, low transaction speed, low network capacity wont go away right away.

@RaoulGMI said that a benchmark yield established for web3 via ETH will boost DeFi, along with in structured products and derivatives.
The biggest story in the merge is the yield, more than the supply reduction.

blockworks founder of @JasonYanowitz lists the 6 big narratives after the Merge:

  1. Capturing MEV
  2. Cosmos ecosystem
  3. Onboarding RWAs
  4. Liquid staking derivatives
  5. New DeFi primitives
  6. Protocol-specific stablecoins

5. Key takeaways of post-merge ETH by @kazsatamai

After the Merge, 1600 ETH will be issued daily.
The Inflation of ETH will be less than post-Merge.
Miners reward grant will be reduced by about 90%.
New ETH issuance will decrease by 90%.

Key takeaway:

The merge proves that a decentralized and permissionless network can operate in an energy-efficient manner.

Looking forward to what’s next in web3!

Sources

https://edition.cnn.com/2022/09/15/business/nightcap-ethereum-merge-crypto/index.html

https://cointelegraph.com/news/ethereum-s-merge-will-affect-more-than-just-its-blockchain

https://twitter.com/kazsatamai/status/1569703558634774528

https://www.reuters.com/technology/understanding-ethereums-major-merge-upgrade-2022-09-09/

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