Original link: https://www.hellobtc.com/kp/du/06/3955.html
Author: Five Fireball Leader / Source: Vernacular Blockchain
Author | Five Fireball Leaders
Produced | Vernacular Blockchain (ID: helloBTC)
In a few days, ETH2.0 Merge will test the water on the test network. If it is successful, it means that the mainnet merger in August that V God said, there is a drama!
In the future, the merger should be the biggest positive for ETH, so you should know at least the following things about this positive:
Why does ETH have to be transferred to POS, can it not be transferred?
Why is the Merge of POW to POS a great benefit?
After the Merge ends, will the amount of ETH pledged be unlocked?
In the ETH2.0 era, where will Layer 2 go?
See below one by one.
01
Why do you have to switch to POS?
The debate on energy consumption, security and other aspects of POW and POS has been going on for several years, but the debate is still a debate, and the switch to POS is a sure thing to happen, not the will of miners or POW supporters. This is something that was planned in the ETH upgrade route many years ago.
Usually people understand the reasons for switching to POS for two reasons : 1. The cost of maintaining security is lower (consume less energy to maintain consensus) 2. In theory, it can prevent 51% attacks better than POW, that is, it is more secure .
But these two are actually more of an effect than a cause.
The real reason is actually at the technical level. To achieve expansion, ETH must be converted into POS.
The earliest expansion idea is sharding + Layer2, in which sharding technology, because of the uncertainty of the longest chain of POW, it is difficult to apply sharding technology, and POS must be used to achieve the certainty of random allocation of blocks.
At present, the expansion technology mainly focuses on Rollup Layer2, and the state sharding technology has been put on hold. However, in order to better support the data sharding technology of Rollup, the Danksharding technology still needs the support of POS, so POS is still the core underlying consensus in the future.
In addition, there are other auxiliary expansion or decentralization requirements such as stateless and light clients, which also require POS, so switching to POS is a Must, not a Should.
02
Why switching to POS is a great benefit from a market value perspective
This angle is very direct.
Everyone compares BTC to the gold of the crypto world, and ETH to the oil of the crypto world. If the mining volume of gold suddenly decreases, it will definitely boost the price of gold, especially the digital gold BTC in the blockchain world. The alternation of bulls and bears brought about by the 4-year halving cycle is still the main theme.
What about oil? When OPEC cut production, oil prices couldn’t go up, and everyone couldn’t slump their wallets when they refueled?
This time, the digital oil of ETH will directly reduce you a big one.
Before the transfer of POW, the annual inflation was about 5%, and it was basically dug out by miners and smashed the market.
After switching to POS, according to the current pledge rate, inflation will drop directly to about 0.5-1% . With the burning of EIP1559, it is very likely that ETH will enter a deflationary state from time to time.
This is the rhythm of reducing production by 5-10 times at once, which is equivalent to the effect of BTC halving three times in 12 years, and ETH has done it for you at one time.
Are you saying that the current price is the price where the merger benefits have already been realized? I don’t think so, because although everyone knows that Merge is required, no one knows the timing. This has been delayed several times. The ETH upgrade is always in this style. This time it was delayed until August, but it was postponed again. To be honest Not at all surprising…
Source: Block Beats
04
In the ETH2.0 era, where will Layer 2 go?
This is actually a point that puzzles me, but I can’t help seeing many friends asking on Twitter, so I still list it out.
First of all , this Merge is just the first step of the ETH2.0 long march, which has little impact on performance improvement. Secondly, it seems that in the impression of many people, in the ETH2.0 era, sharding or other expansion technologies are king. Times, the current Rollup-based Layer2 is just a transitional technology.
This misunderstanding must be corrected. At present, Layer 2 will be the short-term, medium-term, and long-term expansion technology of ETH. There is no such thing as the earliest mentioned sharding technology.
The sharding of ETH2.0 will be pure data sharding. Danksharding is entirely for the cost of Rollup and data availability space. Layer2 Rollup in the ETH2.0 era will have lower costs and better performance than the current one. That’s all.
Therefore, there is no question of where to go for Layer 2. They are not going anywhere, just stay here to serve the ETH ecosystem better, faster and stronger.
In fact, the most interesting point is: where will the current ETH POW miners go?
One argument is that they will transfer their computing power to ETC and mine ETC; another argument is that they will sell their graphics cards or mining machines, and then buy ETH to do Staking to continue mining.
Friends, what do you think it will be?
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