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Ethereum has completed the rehearsal of the first big dress for the long-awaited makeover. This will be the most important overhaul since digital currencies were launched nearly 10 years ago.
Cryptocurrencies such as Ethereum When Bitcoin The process of mining to generate new coins is often criticized. Both currently use the so-called proof-of-work mining model, which contains complex mathematical equations in which a huge number of machines compete for solutions.
Ethereum goes from an energy-intensive proof-of-work method to protect networks to a proof-of-stake model where users need to leverage existing Ethereum caches as a means of validating transactions and creating new tokens. We have been working on the transition. .. This requires much less power than mining and leads to faster transactions.
The migration has been repeatedly postponed over the last few years due to a major flaw in the implementation.
Developers told CNBC that Wednesday’s latest test run was very smooth and is an important marker as the second largest cryptocurrency blockchain is preparing for its breakthrough.
This is what happened. Ethereum’s longest-lived test network (testnet for short) simulates the same process that the main network (or mainnet) runs this fall. Testnets allow developers to try new things before rolling out to the main blockchain, giving them time to make the necessary adjustments.
Wednesday’s exercise showed that the Proof of Stake verification process significantly reduced the energy required to verify a block of transactions, demonstrating that the merger process works.
“There were no crazy bugs that occurred,” said Austin Bunsen, co-founder of QuikNode, which provides blockchain infrastructure to developers and businesses. “Everything went as smoothly as possible.”
Tim Beiko, coordinator of the Ethereum protocol developer, agreed and added that the network is currently stable. However, he said the test hit “some minor known issues” and the developers spend a few days triaging them before discussing the next steps in the AllCore Devs call this Friday. “.
Price etherThe Ethereum blockchain-specific token has lost about half its value this year and is trading at just over $ 1,800.
Since December 2020, the Ethereum community has been testing proof of stake workflows on a chain called Beacon. The beacon chain runs in parallel with the existing proof of work chain, and human validators are already processing new blocks.
According to Beiko, Beacon solves problems that arise from previous efforts to make the switch.
“We knew there was a lot of technical work to deal with, such as the increased centralization seen in other proof of stake systems,” Baiko told CNBC. “We achieved that with the Beacon Chain.”
Beiko told CNBC that the original proposal would require the validator to hold 1,500 ethers, currently worth about $ 2.7 million, in order to use the system. To lower the barriers to entry, the new Proof of Stake proposal requires interested users to have only 32 ethers, or about $ 57,600.
“It’s still not a trivial amount, but it’s a much more accessible system,” says Beiko.
Developers are simulating merging with testnets to pressure test workflows and code. On Wednesday, Ethereum’s longest-running testnet, known as Ropsten (strictly mirroring the mainnet), successfully merged the Proof of Work execution layer with the Proof of Stake Beacon chain. This is the first dry run of the process that the mainnet will take place later this fall and everything should go as planned.
By testing the merge, Beiko said that developers are stable with software running the Ethereum protocol and “everything built on the network is ready for migration.” I said I can confirm it.
Prior to Wednesday, the beacon chain wasn’t really working, Bunsen said.
“It was just moving around, creating empty blocks because there was no better term,” he said.
He called Wednesday’s trial an “instantaneous smooth development,” and said “you can see it happening on the mainnet as well.”
Testnets called Goerli and Sepolia are expected to experience more dry runs, giving developers additional opportunities to see what goes wrong before the official show.
“At each testnet, we expect the code to be similar to what is used on the Ethereum mainnet,” Beiko said. “We want to reduce friction every time. We hope that the small issues we saw today will be resolved by the time we upgrade our next testnet.”
Still, Baiko encourages enthusiasts to pay attention.
“Users need to be aware that Ethereum doesn’t have to do anything on their side unless it’s a validator on the network to move to Proof of Stake,” he said. .. “This migration also does not create a” new “Etherium token. “
Beiko advised users to be aware of scams and refer to Ethereum blog For announcement.