Ethereum is one step closer to its long-awaited Eth2 update. The world’s largest blockchain network launched its first mainnet shadow fork today, as developers continue to convert the backing network to proof-of-stake consensus.
You may say that the shadow fork launch was a rehearsal for what’s called “The Merge,” which aims to shift the Ethereum blockchain network from a proof-of-work (PoW) model to a proof-of-stake (PoS) model. The Merge is reportedly expected to take place this quarter. You may learn more about The Merge in our previous newsletter here.
Developers began testing the upgrade today, reporting that it went smoothly, although it did encounter some minor issues.
Parithosh Jayanthi, an Ethereum Foundation developer, tweeted: “The shadow fork is a way to “stress test our assumptions around syncing and state growth.”
He continued by saying that it will also provide a way to test whether or not our assumptions are true on existing testnets and/or mainnets.
Ethereum has been working on changing its consensus mechanism for years. Currently, it relies on proof-of-work, in which crypto miners must solve complex puzzles to validate transactions. The environmental impact of this process is often criticized because it requires a great amount of computational power.
By switching to a proof-of-stake model, users could validate transactions according to how many coins they contribute or stake in the network. That means by staking more coins, users will have a higher chance of being chosen to validate transactions on the network and earning rewards. As a result of this shift, Ethereum’s crypto mining would become obsolete, which would significantly reduce its environmental impact.
This upgrade will ease the pain points associated with Ethereum, such as transaction fees and speed. It’s important for the crypto world as Ethereum is the biggest blockchain network, supporting hundreds of tokens, DeFi apps, and NFTs.
Today, Ether ($ETH.X), the native token of the network, hovered around $3,000, down 9%.