Ethereum passes a major test in the direction of its fusion: what happened?

On Wednesday, Ethereum developers passed a test of upgrading one of its blockchains from a proof-of-work system to a proof-of-stake system.

The transition from Ethereum to Ethereum 2.0 is progressing well. On Wednesday, a test that the Ethereum community had been waiting for a long time was passed. Specifically, Ethereum developers have moved the Ethereum Ropnstet blockchain from the so-called “proof of work” (Pow) system to the “proof of stake” (PoS) system.

Ethereum founder Vitalik Buterin retweeted a tweet from specialist firm Etherchain announcing the news.

This test is part of a larger update of the Ethereum blockchain, dubbed The Merge, which is expected to take place in August. This merger for Ethereum consists of going from a process of validation and mining called PoW to PoS. A huge step towards a completely different system.

The difference between “Proof of Work” and “Proof of Stake”

As a reminder, “proof of work” (or proof of work) is a system that aims to secure many blockchains, especially Bitcoin and Ethereum, thanks to minors (person or group of people) who use the computing power of computers to validate transactions and generate new blocks on a blockchain. For example, the fastest miners to validate a transaction on the Bitcoin blockchain are rewarded in bitcoins.

For its part, “proof of stake” (or proof of stake) is a system that aims to secure many blockchains and is considered an alternative to PoW. A holder of a cryptocurrency is selected at random and, in particular, must prove that he owns a certain amount of cryptocurrency in order to obtain the right to validate blockages in the network in order to guarantee his security. This method is less energy intensive than PoW.

More miners and 101,000 validators to secure the Rospten network

Let’s go back to what happened last Wednesday. Ropsten was launched in 2016 and was Ethereum’s oldest “test network” to date. A test network is an alternative blockchain that allows testing without compromising user resources. The role of the various stakeholders (developers, validators …) in the update on Ropsten had been described in a post here.

The transition from a PoW to PoS system on this blockchain has been successful, so miners can no longer mine on this network. Ropsten blockchain therefore no longer has miners, but several validators on its network: They have gone from 100,000 validators in early June to 101,000 today. The latter blocked each 32 ether at an address to participate in the validation of a block, which meant that more than 3 million ethers were deposited to secure the network.

“A validator is a device that participates in consensus on the Ethereum 2.0 protocol, in other words, a human being performing a computer process. This process suggests and guarantees the addition of new blocks to the blockchain. In other words, you can think of a validator who chooses for new blocks.The more votes a block receives, the more likely it is to be added to the chain.It is important to note that a validator’s vote is weighted by the amount it receives.Ethereum explains on its blog .

Following this update on Ropsten, “the validators who now secure the network through Proof of Stake (PoS) have started operating and creating the new blocks of transactions that were previously created by miners through Proof of Stake. Of Work (PoW)”, explains the founder of the specialized media Au Coin du Bloc, who prefers to remain anonymous.

Second test before the main merge The Merge

This transition from PoW to PoS on the Ropsten blockchain still deserves close scrutiny. “Fusion that works well for 6 hours is not proof of complete success,” he said Vitalik Buterin on Wednesday indicates that problems may be identified over the next few weeks.

For example, during the test, one of the Ethereum developers, Tim Beiko, identified a problem with missing blocks.

“Today we can not yet say that the transition is successful, it takes some time to see how the network responds and whether everything works properly. Nevertheless, we can say that the implementation went well, which is very good news.” said the founder of Au Coin du Bloc.

The developers will thus make the same updates as on Ropsten on two other test networks over the next few weeks: Sepolia and Goerli. If the updates are also successful, it will lead to the major August update to the primary Ethereum blockchain, which would move from a PoW to PoS system.

IN note published in May on the Ethereum side, the developers claim that the merged blockchain will consume 99.95% less energy after its transition. This merger will also lead to new developments on the blockchain, as it will no longer be possible to mine. Self-validators support mainnet validation.

Moreover, this merger should reduce the emission of circulating ethers, which would mean that with a limited amount, the demand for ether could be higher. In fact, unlike bitcoin, which is issued in limited quantities (21 million bitcoins in the long run), there is no such limit for ether.

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