Merge Initial Understanding with airSlate SignNow

Merge initial understanding

[Music] you might have heard that ethereum is merging the beacon chain into mainnet this is happening because ethereum is a second generation blockchain for which the consensus mechanism was voted to be upgraded from proof-of-work to proof-of-stake by the community so what does it mean [Music] ethereum is the first programmable blockchain it was built on the concept of open economy open access to digital money and data accessible to everyone because it's programmable ethereum is considered the infrastructure for the international value as with any blockchain it is a decentralized system a peer-to-peer network of computers used to perform value transactions over the internet it uses a consensus mechanism the algorithm that validates the transactions called proof-of-work proof-of-work is a computer-heavy method in which complex mathematical problems are used to ensure transactions are valid and secured as it will require a massive computational power to hack the network which is called the 51 attack the computer node that finally resolves these complaints mathematical problems is rewarded with eth and gets to write the new block in proof of work the validation is usually called mining as it requires a lot of work to obtain the reward for that work worrying the concept and the vocabulary in the gold mining industry [Music] because proof of work is computer heavy it uses a lot of electricity like bitcoin but not as much so the ethereum community approved a change from proof-of-work to proof-of-stake proof-of-stake is another method to validate and secure the network and the transactions but instead of relying on computing power it gives the validating computers the opportunity to back their validation by staking depositing some eth ethereum's native cryptocurrency against dishonest behavior thus protecting the network miners will no longer mine but will be selected for validation by staking their eth on the node client the more ease that's at stake the bigger it's the probability of the node to be selected when a new block is validated the node receives the corresponding block reward into the merge what is the beacon chain the beacon chain is a parallel ethereum chain running on proof of stake since december of 2020 with two major goals proving the viability of running ethereum on proof of stake and estimating the energy consumption of ethereum when doing so the current projection is that proof-of-stake ethereum will consume 99.95 percent less power to run than the proof-of-work ethereum while keeping the same levels of security [Music] the process of upgrading ethereum is called the merge because how the process is going to take place the beacon chain will be merged into the ethereum mainnet the current ethereum blockchain and will become its consensus layer ethereum then will have two layers the transaction execution layer formerly known as eth1 and the consensus layer formerly known as eth2 [Music] to observers ethereum will perform exactly the same with reduced energy consumption and heath holders and smart contracts running in the execution layer will not...