Learn about the Ethereum merge

For the past few months, we've all been hearing about the Ethereum merge and the term 'Ethereum 2.0', with lots of people having little idea about what all these is about, this article explains in summary the ethereum merge and it's Importance.

What is the Ethereum merge?

The Ethereum merge is simply the switching of the ethereum blockchain from Proof of work (PoW) consensus mechanism to Proof of stake (PoS).
The term “Ethereum 2.0,” is an all-encompassing term that describes Ethereum’s next evolution into a better-performing, more accessible network.

Consensus mechanism is the process by which a group of peers or nodes on a network determine which blockchain transactions are valid and which are not.

Now what is Proof of Work and what is Proof of Stake.

Proof of work (PoW) :

Proof of work involves the use of network participants called miners to validate transactions by solving complex mathematical equations, One blockchain that uses proof of work is Bitcoin.
In Proof of work for transactions to be validated, miners have to solve complex mathematical puzzles which requires advanced computer hardware.
Whoever solves such puzzles first is rewarded some amount of cryptocurrency. In the Bitcoin blockchain currently miners are rewarded with 6.25 bitcoin, which is halved every four years.

Proof of stake (PoS):

In Proof of stake, for transactions to be validated there is no need to solve any complex puzzle. Network participants now called validators would have to stake a certain amount of cryptocurrency on the network to be able validate transactions. This helps secure the blockchain and ensure that validators do the right thing or risk losing a part or all of their stake.

Why is Ethereum switching from PoW to PoS?

The Ethereum blockchain is home to lots of innovative dapps on it's network, and as the second largest cryptocurrency after bitcoin is used by a lot of people, having to process loads and loads of transaction. But by using Proof of work Ethereum can only process about 10-50 transactions per second. This leads to network congestion and very high transaction fees users have to pay to perform transactions, which has slowed down the growth and use of the network.
Also Proof of work has often been criticized for high energy consumption due to the fact that it requires advanced computer hardware that consumes lots of power.

Now with the launch of 'Ethereum 2.0' which is mostly all about switching from Proof of work to Proof of stake, Ethereum would be able to process transactions a lot more faster and perform about a 100,000 transactions per second. This in turn would lead to a free flowing network without congestion.
Also the switch to Proof of stake by Ethereum would lead to increased scalability and would reduce it's network energy consumption by 99.95%.

In the short-term, The Merge is not likely to reduce gas fees because the upgrade is about a change in the consensus mechanism (the way Ethereum validates transactions), rather than an increase or expansion of its capacity.

Ethereum move from Proof-of-Work (PoW) to Proof-of-Stake (PoS) is in an effort to increase the blockchain’s security, make it less energy-intensive, lower barriers to entry by reducing hardware requirements, and lay the groundwork to improve scalability.

The Ethereum merge is the way forward for Ethereum in leading the way as the world slowly but surely transitions to Web3.