Ethereum.org, the official website of Ethereum, has updated 8 misconceptions about the Merge as the community awaits the expected upgrade on September 15th. The Merge will not reduce gas costs, speed up transactions, or allow withdrawals of staked ETH.

These changes will take place with the subsequent completion of the Surge, Verge, Purge and Splurge phases and the Shanghai upgrade.

Ethereum Fixes 8 Misconceptions About Gas Fees, Transaction Speed, and Post-Merger Restocking

Ethereum.org updated 8 misconceptions about the merge on August 17 as the expected date of the upgrade approaches. Ethereum is transitioning from proof-of-work (PoW) to proof-of-stake (PoS) consensus with the merger of the Ethereum Mainnet and Beacon Chain. It will reduce power consumption by 99%.

Users do not need to upgrade any software, transfer money, or send ETH to move to proof-of-stake Ethereum. However, users should be aware of merging scams and misconceptions about merging.

Misconception 1: Merging Will Lower Gas Costs

The merger will change the consensus mechanism to PoS, but not expand network capacity or throughput to lower gas tariffs. In fact, the gas fee depends on the demand from the Ethereum network.

However, the move to PoS will help increase scalability in the Surge sense through sharding and rollups to significantly reduce gas costs.

Misconception 2: Merging will increase transaction speed

The transaction speed will not increase much as blocks are produced only 10% faster on PoS than on PoW. It introduces the concepts of transaction finality and eras.

However, users can expect a higher transaction speed of 100,000 transactions per second after completing all phases of the Ethereum upgrade.

Misconception 3: Merging Allows ETH Payouts

The merger will not allow the withdrawal of staked ETH (stETH) immediately. The Shanghai upgrade only allows evicted ETH withdrawals. It means that Ethereum assets will remain locked and illiquid over the 6-12 month waiting period.

Misconception 4: Validators Don’t Receive Liquid ETH Rewards

Validators get instant fees and maximum extractable value (MEV) earned during block proposals on the Ethereum Mainnet. On the Beacon Chain, the newly issued ETH will be locked until the Shanghai upgrade.

Misconception 5: All players will leave immediately after enabling recordings

After the Shanghai upgrade, all validators will be incentivized to withdraw or increase staked ETH using rewards. In addition, validators’ exits are limited for security reasons, allowing only 6 validators to exit per era or 6.4 minutes.

Misconception 6: APR bets will triple after the merger

The APR can only rise by nearly 50%, not 200%. The more fees paid by users, the higher the validators’ rewards.

Misconception 7: Running a node requires staking 32 ETH

Mining nodes under proof-of-work (PoW) and validator nodes under proof-of-stake (PoS) require economic resources to process a block. A node that produces no blocks does not require ETH, but a computer with 1-2 TB of available storage space and an internet connection. These blocks help increase the security, privacy, and censorship resistance of the Ethereum protocol.

Misconception 8: Merging Will Result In Ethereum Blockchain Downtime

The merge is triggered by the terminal’s total difficulty (TTD) to automatically transfer the Ethereum to PoS. There is no downtime.

ETH deflationary after the upgrade

Ethereum will become a deflationary asset after the merger as supply depletes over time due to the EIP-1559 fire mechanism.

ETH prices are likely to rise as a result of demand under the right market conditions. According to Vitalik Buterin, demand for Ethereum will increase 6-8 months after the merger.

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Varinder is a technical writer and editor, technology enthusiast and analytical thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a significant period of time and is currently covering all the latest updates and developments in the crypto industry.

The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication is not responsible for your personal financial loss.



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