The Merge is live, Ethereum (ETH) has just successfully completed its historic update

Long awaited by the ecosystem, Ethereum (ETH) has just successfully completed its famous Merge and thus marks its transition to proof of stake. We are following this historic event live.

https://cryptoast.fr/the-merge-live-ethereum-vient-reussir-mise-jour-histoire/

Ethereum successfully passes The Merge stage

Awaited for years, the passage ofEthereum (ETH) from proof of work (PoW) to proof of stake (PoS), symbolized by The Merge, has finally arrived. The famous Terminal Total Difficulty (TTD) took place today around 8:42 a.m. Paris time, marking at the same time this historic turning point.

Although it will still take some time to finalize the final settings, everything has a priori gone as planned for the moment. After this merger between the Beacon Chain and the Mainnetminers no longer receive revenue for block production and have passed the torch to validators.

While part of the ecosystem feared that miners would “unplug their machine” in an attempt to slow down the advent of TTD, Vitalik Buterin himself was surprised that the majority of the actors have played the game. Indeed, the latter noticed last night that the drop in hashrate was less pronounced than expectedfar from the 50% that some people could announce:

👉 ETH 2.0 FAQ: How to take advantage of MERGE? Understand everything about the update:

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The ecosystem is in turmoil for the event

As previously announced, cryptocurrency exchanges suspended withdrawals and deposits of ETH and ERC20 tokens in order to play it safe. This is particularly the case of Binance or Coinhouse:

On the side of lending and borrowing platforms such as Aave (AAVE), interest rates exploded in demand for ETH. On Ethereum, for example, people who deposited ETH as collateral received the equivalent of more than 71% per year:

ETH deposit on Aave

Returns received by liquidity providers

On the borrowing side, these platforms had to suspend them temporarily, as previously announced. Interest rates were therefore not available on the Mainnet this morning. However, for other networks such as Polygon (MATIC), borrowing rates could sometimes exceed 195% at the time of writing these lines.

Of course, all these variables are only temporary and everything will return to normal as the network stabilizes.

Regarding the ETH staked in the Beacon Chain smart contract, it will now be necessary a future update for unlocking.

The Merge, though historic, was just one step in scaling Ethereum. There is still a long way to go to reach the 100,000 transactions per second hoped for by Vitalik Buterin. The next step in this evolution will be The Surge, with the implementation of sharding.

👉 On the same topic – The Merge of Ethereum (ETH) – Beware of scams!

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