How will the Ethereum integration process affect the ETH network?

The Ethereum integration process from Proof of Work (PoW) algorithm to Proof of Stake (PoS) will take place in September 2022 (September to early October). What effects will this update have on the Ethereum network?

VC heavyweight Amber Group, which operates in the Web 3 domain, has announced its prediction of Ethereum’s integration process and the future of this cryptocurrency. Investigating the possible effects of ethereum migration to Pos on the economic plan of this network is the main topic of Amber Group’s report.

Who will benefit from the Ethereum integration process?

Initially, Amber Group experts tried to check the Ethereum APY staking rate after the merger process. According to their estimates, ETH shareholders can earn up to 8.47% annual return on their capital stake in Beacon Chain mechanisms.

The miner’s mineability value or MEV (miners’ tax) will be removed by validators, and MEV mining will be one of the most influential factors in the Ethereum network after the merger.

As of June 2022, Ethereum PoS Beacon Chain shares are heavily concentrated and dominated by Lido Finance. As reported by U.Today, Ethereum’s process of merging from Proof of Work (PoW) to Proof of Stake (PoS) will take place in September 2022.

Emigration of Ethereum Miners

Ethereum Classic (ETC) does not accept withdrawals from Ethereum’s current hashpower. Ethereum miners will be forced to leave their business or migrate to another blockchain that uses Ethash. This mainly means running Ethereum Classic (ETC) mining. According to U.Today, Ethereum Classic returned to the list of top 20 digital currencies after the Ethereum merger news.

Some miners have announced their support for a hypothetical proof-of-work (PoW) fork of the old Ethereum (ETH). However, it is highly unlikely that Ethereum’s DeFi and stablecoin infrastructure will use a proof-of-work system.

The representative of the Amber group explained that the simultaneous existence of two Ethereum ecosystems consisting of tokens and various software will cause widespread problems such as IP rights violations.

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Source: u.today