The final merge and subsequent transition to a proof of stake consensus mechanism is about to happen after the success of its Sepolia testnet merge, and the network with most projects on it is getting closer to the final merge. The long-awaited transition from proof-of-work to proof-of-stake would be completed after the merger.
The Sepolia testnet merge was necessary to make sure that the technology used is error-free before the final merge and transition to the proof of stake consensus mechanism takes place.
The changeover of the Ethereum blockchain from proof-of-work to proof-of-stake would take place slowly.
Proof of work or proof of stake are used in order to secure the network and validate transactions. The Proof-of-Work on the Ethereum network is similar to the consensus mechanism used in Bitcoins. The native token is a way to reward miners for their efforts.
The transition from a proof of work consensus mechanism to a proof of stake consensus mechanism will change how the network is secured and how blocks are validated. After the transition, miners will be replaced by validators. Validators can either lock up or stake ETH to maintain the network's functionality.
What will be the impact of the transition on the ETH token?
Since a large amount of ETH must be locked up in order to function, the change is thought to have a deflational effect on ETH.
How far has the network come along in its transition?
The mergers of the Ropsten and Sepolia have been satisfactorily completed so far. The last test before the ultimate merge is the Goerli testnet. When the project is completed, it will switch to proof-of-stake consensus. The testing encountered a number of roadblocks along the way, delaying the merge when it was anticipated to be completed much earlier. Vitalik Buterin, co-founder of the Ethereum network, assured the community that the transition might be complete by August this year.