Update on The Merge – Network on September 15 Ethereum he was concluding his work Transition from Proof of Work to Proof of Stake. This historical update has changed many settings in the network. with regards to 100 day anniversary The Merge has published a report that reviews the changes that have taken place in the Galaxy.
Merger: 100 days and many changes
On the occasion of December 13 100 day anniversary of The Merge deployment, Christine Kim published a report for the company galaxy. It describes the changes that are happening on the Ethereum network.
Recall that on September 15, the Ethereum network categorically abandoned Proof of Work in favor of Proof of Stake. As a result, miners who provide verification and block security have been replaced by validator nodes.
Title Mergermarked by the link of this linkimplementation layer (Ethereum’s application layer) at consensus layer provided by beacon chain.
One hundred days later, the Ethereum network has changed a lot, and on many levels.
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The block time has decreased and the number of blocks is increasing
Switch to Proof of Stake enabled improve block time prediction. Recall that block time or block time is the time it takes to add a new block to the blockchain.
This better predictability led to another phenomenon. Indeed, it was a reason decreasing block timeIt went from 14 seconds before the merger to 12 seconds. The one who says that the block time is reduced means that he produces more blocks in a day.
“The number of confirmed blocks per day has increased significantly from an average of 6,000 blocks per day before the merger to over 7,000 blocks in the last 100 days. »
Reduction of ETH emission
There is also a link to Proof of Stake ETH production rate affected. So while 15,000 ETH were produced daily before the Merger, the network is not producing now. More than 1800.
Moreover, this production was compensated by the mechanism of systematic destruction of part of the costsEIP 1559. Therefore, ETH’s annual inflation rate has dropped from 4 or 5% to just 0.12%..
Mev-Boost: increased adoption
In parallel with the merger, validators will be able to participate fully and exceed the Maximum Withdrawal Value (Maximum extractable value, MEV). For this, they can work with an additional program called Mev Boost.
“This allows them to connect to many third-party relays, off-chain markets where MEV optimized pre-made blocks can be auctioned. »
In practice, MEV premiums have remained relatively stable since the Merger – Except for days when FTX falls. The use of Mev-Boost has exploded. So, about 80% of validators accepted Mev-Boost.
Mev-Boost: the censoring problem
Although Mev-Boost allows validators to increase their income, it does not only have its advantages. Indeed, as we have has already been discussed many times, A significant censoring phenomenon emerged from the use of Mev-Boost.
Thus, it is estimated that approx 57% of blocks Products were exhibited by The Merge, which followed for 100 days Systematic censorship of transactions related to Tornado Cash.
Unfortunately, this phenomenon has tended to grow in proportion to the adoption of Mev-Boost.
Staking: a profitable business
Adding profit from SRM a increased revenue for validators. Thus, the latter benefit from revenues from MEV as well as from block production.
Therefore, the Merger resulted in an increase in annual staking revenue. So, that’s about 4% to 6%.
Now the Ethereum network is looking to the future Next hard fork deployment next March: Shanghai. This will mark the opening of withdrawals involving ETH staked on the beacon chain.
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