As its Sepolia testnet merge comes out as successful, Ethereum is moving one step closer to the final merge. The much-awaited move of Ethereum from proof-of-work to proof-of-stake is nearing day by day. Sepolia testnet has completed its merge and switched to proof-of-stake today.
The testnet comes out as an important test before it is launched on the final mainnet. This is important to ensure that the tech is error-free before the final launch on the main network.
Ethereum is waiting for the much-awaited transition
The Ethereum blockchain is slowly progressing towards its transition from proof-of-work to proof-of-stake. The ETH network uses proof-of-work, similar to Bitcoin, which requires miners to solve complex problems to secure the network and validate transactions. The miners are also incentivized with the native token for the work they do.
This merge from PoW to PoS will shift the entire way things are happening. The transition will make the network cheaper, faster, and more energy-efficient. Proof-of-stake works differently from proof-of-work. Miners will be eliminated, and instead of miners, there will be validators. This is carried out either by validators locking up or staking ETH to keep the network functioning.
The transition is said to have a deflationary effect on ETH, as a large amount of ETH needs to be locked up for the functioning of the network. So far, the tests have been carried out successfully on Ropsten and Sepolia testnet. One final test before the final merge is the Goerli testnet. After the successful completion, Ethereum will finally move to the proof-of-stake consensus.
The merge was supposed to be completed much earlier, but the tests suffered several hindrances on the way causing the delay. But, the final merge is supposed to be successfully completed by the end of this year. This is a much-awaited update by the ETH community.