The Ethereum Improvement Proposal (EIP) has officially launched, merging two chains during the transition from network to proof-of-stake.
ConsenSys researcher Mikhail Kalinin created a pull request for EIP-3675 on Github on July 22nd. This move officially started the process of upgrading the Ethereum network from its current proof-of-work chain to the highly anticipated proof-of-stake consensus mechanism.
The specification states that the beacon chain network has been in operation since December 2020. It has been added that no outages have been detected during this period, so it is time to move into the next phase on the long road to ETH 2.0.
“The long-term trouble-free operation proves the sustainability of the beacon chain system and shows that it is ready to run and become the security provider of the Ethereum mainnet.”
EIP laid the foundation for what developers call “merging” in Ethereum 2.0. According to developer Tim Beiko., it will be discussed at the Core Developer Meeting on July 23, he said:
“Hard to overstate how valuable’s @mkalinin2’s [Mikhail Kalinin’s] work on The Merge has been, and it’s finally being formalized in an EIP,”
According to official documents, the current Ethereum mainnet will be merged with the beacon chain, marking the end of Ethereum’s proof of work. This is supposed to be done before the shard chain is rolled out, but it is unlikely to happen this year.
After the merger, the new mainnet will offer the possibility of executing smart contracts on the proof-of-stake system. It will also import the full history and current status of Ethereum to ensure a smooth transition for all ETH owners and users.
After the merger is complete, some features will be implemented, such as the ability to withdraw stake ETH. The plan also includes a post-merger “cleanup upgrade” to address and accelerate this issue, which is expected to occur soon after the merger is complete.
Ethereum Price Analysis
Ethereum’s price rose for the second straight day and stayed above the psychological level of $2,000. At the time of writing, ETH changed hands at $2,060, up 3% from the day.
ETH is up 8% last week and 10% since the same period last month but has fallen 53% since it hit an all-time high of $4,350 in mid-May.