The Merge Doesn't Lower Ethereum's Gas Fee

JAKARTA – The Merge is Ethereum's transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS). The transition is expected to be completed on September 15 or 16. However, even if The Merge Ethereum is successfully implemented, it is claimed that it will not reduce transaction costs on the ETH network.

Ethereum developers recently exposed a number of misunderstandings regarding The Merge, including the alleged reduced gas fee.

“This will not result in lower gas fees; transaction speed will mostly remain the same at layer 1,” wrote Wu Blockchain, on August 17, 2022.

Ethereum CEO Vitalik Buterin himself has confirmed that The Merge is expected to be completed in September this year. In the process, speculation circulated regarding the merger of ETH from PoW to PoS.

Hence, the Ethereum development team came out to debunk some of the common “misunderstandings” about The Merge. Some of these include the assumption that the Merger will reduce gas costs or cause downtime for the network and others.

The Ethereum development team stated “The Merge” is unlikely to result in lower transaction fees. It is stated that The Merge remains a change in the consensus mechanism, not an expansion of network capacity. Meanwhile gas fee is the result of network demand in relation to network capacity.

When moving from proof-of-work consensus to proof-of-stake, The Merge does not dramatically change any factors that directly affect network throughput or capacity. It offers clues as to how it aims to solve expensive transaction fees.

“With the rollup-centric roadmap, efforts are focused on scaling user activity at layer 2 while enabling the Layer 1 Mainnet as a secure decentralized settlement layer optimized for rollup data storage to help make roll-up transactions exponentially cheaper,” the Ethereum developer said in a statement. efforts to lower transaction costs, quoted from UToday.

According to the developer, the transition from PoW to PoS is the first step for the development of the Ethereum ecosystem. They also refute the assumption that The Merge will speed up online transactions. The developer states that most transactions will be the same as in layer 1.

At the time of writing, Ethereum is trading at IDR 27 million. Its performance has decreased by 5.07% in the last 24 hours. ETH currently occupies the second position as the largest cryptocurrency based on its market capitalization of IDR 3.3 quadrillion, according to a data report from CoinMarketCap.