Ethereum is changing its consensus mechanism from Proof-of-Work (PoW) to Proof-of-Stake (PoS): Clients do not have to take action
In mid-September, Ethereum Mainnet will be merged with Beacon Chain. “The merge” marks Ethereum’s final transition from a Proof-of-Work (PoW) system to a Proof-of-Stake (PoS) system.
Clients do not have to take action
Clients do not have to take action to protect their investment. Bank Frick monitors the merge on an ongoing basis. This means that ETH is safe with us. It should be noted that deposits of ETH will no longer be possible around four hours before and up to four hours after the merge. This is necessary to ensure the required stability and to protect our clients from possible errors.
Most significant upgrade in the history of Ethereum: What changes?
The merge is the most significant upgrade in Ethereum history to date, and the first upgrade of a PoW chain to a PoS chain. Extensive testing and bug bounties were successfully performed to ensure a safe transition to proof-of-stake.
The merge provides the basic framework for subsequent scaling updates, as well as “sharding”, for example. ETH mining will now become obsolete as a result of this move, which will reduce Ethereum’s energy consumption by approximately 99.95%.
The necessary and actual upgrade called “Paris Upgrade” will most likely take place on 15 September 2022. However, this date should be viewed as a soft date, as many factors could make this date change to between 10 September and 20 September 2022.
If you have any questions about the upgrade or the security of your funds, please do not hesitate to contact us.