DeFi trader Vivek Raman said in a Twitter thread that Ethereum (ETH) predicted Merge wouldn’t cut network prices as many would expect.
Ethereum Marge is one of the most powerful catalysts in the history of cryptography and is quickly approaching.
When you reach the end of ETH under the Proof of Work regime, let’s talk about the 10 key characteristics after merging, Proof of Stake ETH.
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—VivekVentures.eth ??? (@VivekVentures) July 10, 2022
High gas charges
According to his tweet, Ethereum’s high gas prices are due to increased demand for block space, not a function of the “consensus mechanism”. He continued that the purpose of the merge was to abolish Ethereum’s proof of work consensus mechanism and replace it with a proof of stake.
1. After merging, ETHL1 fee will not decrease
The purpose of the merge is to abolish Ethereum’s PoW consensus mechanism and replace it with PoS. Fees are a function of block space demand, not a consensus mechanism.For low rates, run using L2 (already live)
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—VivekVentures.eth ??? (@VivekVentures) July 10, 2022
He concluded that network charges would not go down. Instead, users can use the layer2 solution to reduce costs.
Ethereum’s high transaction fees are a whiplash problem in the field of cryptocurrencies. The high cost of the network has made many users comparable to the low gas L1 blockchains such as Solana (SOL) and Cardano (ADA).
However, according to BitInfoCharts data, Ethereum’s average gas tariff has recently dropped to $ 1.57.
Ethereum will be safer
Vivek disagreed with the idea that Ethereum’s Proof of Stakes network is insecure. According to him, Ethereum is mathematically costly to attack, so it will be safer after the merge.
He quoted Vitalik Buterin’s post in support of his claim. According to Buterin, the Proof of Stake Network has a better blockchain security mechanism than the Proof of Work.
sustainability
Ethereum will consume less energy after the merger. This is one of the strongest arguments in favor of the transition to a proof of stake consensus mechanism.
According to Vivek
The Ethereum blockchain is more sustainable than the Bitcoin blockchain.
Other issues merge is improved
Vivek said it expects ETH’s staking yield to increase by at least 50% after the merger. Currently, ETH’s staking yield is 4.2%, rising to over 6%, and validators also receive transaction fees.
Vivek added that Ethereum will be DeFi’s primary collateral asset and will be a digital bond that complements the Bitcoin (BTC) use case as a store of value and collateral.
In the meantime, he believes Ethereum will continue to evolve, and improvements such as data sharding, state management, and staking withdrawal can be expected after the merge.
Buterin responds to security claims
Vitalik Buterin, co-founder of Ethereum Criticized public relationsOof-of-work supporters who oppose proof of stake.
It’s amazing that some PoW advocates keep repeating the unmitigated real-faced lie that PoS includes voting for protocol parameters (as PoW doesn’t, it doesn’t). ).
The node rejects invalid blocks on PoS and PoW. It’s not difficult. https://t.co/vLEWWsWIsG
— Vitalik.eth (@VitalikButerin) July 12, 2022
In response to Nick Peyton’s comment that the Proof of Stake Network is a securities company, as voting can change assets, he described such comments as a “real lie.”
This could also be an indirect response to a similar claim by Microstrategy CEO Michael Saylor.
Vitalik said that the claim that Ethereum is security may be due to grammatical nuances. He said:
When we talk about things like Proof of Stake, we don’t say “it’s security”, we say “it’s safe”. I know these suffixes are difficult, so I forgive the error.
