The Ethereum Merge. What you need to know.

This article aims to address the forthcoming Ethereum merge and some misconceptions and optimism about the merge. Just in case you are new to crypto and not acquainted with the jargon of the space. I will attempt to make this article as illustrative and relatable as possible. So before I delve into the merge I will first give a quick intro to the blockchain and consensus mechanism.

What is a BlockChain?

Blockchain technology is an innovation enthusiast considered revolutionary and disruptive in nature. First off, the purpose of this technology is essential to create a decentralized world and give power back to the people. It aims to preserve whatever is of value and maintain trust without the need of intermediaries or centralized authorities on a decentralized platform. This is achieved with the help of distributed ledgers, cryptographic algorithms, and consensus mechanisms. It does this through a peer-to-peer network called a blockchain network. This network is considered immutable because the technology that it is built on makes it almost impossible to be hacked. Transactions on a blockchain are vetted by miners or validators to prevent double-spending or fraudulent transactions and they reach an agreement on valid transactions through what is known as a consensus mechanism.

What is the mechanics behind the Consensus Mechanism?

The consensus model tells how network participants agree on what transactions are legitimate. There are several models to reach a consensus in a blockchain network. However, I will only briefly address the two prominent ones.

Proof of Work (PoW) and

Proof of Stake (PoS)

Proof of Work (PoW) model

PoW in blockchain was first used by Bitcoin founders Satoshi Nakomoto. It is called proof of work because literally, miners need to put in so much work in terms of computer resources and electricity to successfully solve a cryptographic puzzle. Solving the puzzle is proof that much work has been expended. Miners are rewarded by the native currency of the blockchain after successfully mining a block. With this block, the miner can then verify transactions on the blockchain network. PoW mining helps to secure the blockchain from malicious activities because first, it takes a lot of resources to mine a block. Secondly, the block becomes visible on a global distributed ledger so it becomes practically impossible to validate fraudulent transactions without being flagged by other participants on the network.