Experts name 5 false expectations from Ethereum update

The excitement around the upcoming Ethereum update, The Merge, which involves the merger of two blockchains — Mainnet Ethereum and Beacon Chain — has sparked many rumors in the crypto enthusiast community. Analysts have identified 5 misconceptions that are the subject of debate.

Misconception 1: Ethereum transaction fees will decrease after the merger

This is one of the most common misconceptions among investors. Although the reduction of fees is at the top of every investor’s wish list, The Merge is a change in the consensus mechanism that will move the Ethereum blockchain from PoW to PoS (proof-of-stake). The Merge will indeed mean the end of proof-of-work (PoW) for the Ethereum blockchain.

Misconception 2: Ethereum transactions will be faster after the merger

Although Ethereum developers believe that the switch to PoS will increase block production by 10%, the small improvement will actually go unnoticed by users.

Misconception 3: The merger will lead to Ethereum blockchain downtime

Contrary to the misconceptions that predict positive outcomes for Ethereum from The Merge, rumors suggest that the planned update will instantly crash the Ethereum blockchain.

Misconception 4: After the merger, investors will be able to withdraw their ETH investments

Although users would like to be able to withdraw their stETH assets, the developer community has confirmed that the update will not facilitate this. The withdrawal of stETH assets will become available during the next major post-merger update known as the Shanghai update. As a result, the assets will remain locked and illiquid for at least 6−12 months after the merger.

Error 5: Validators will not be able to withdraw ETH rewards before the Shanghai Update

Validators will have instant access to commission rewards and maximum extracted value (MEV). Since the commission reward will not be paid with newly issued tokens, it will be available to the validator immediately.