On September 6th, bit4you intends to suspend transactions in ETH and all ERC20 tokens on the platform, a few hours before the Bellatrix consensus layer upgrade. The network will be available again a few hours after the update is completed. After the event, you will be able to make Ethereum and other ERC20 token transactions. Transactions are expected to resume a few hours after the update.
As you may know, the Ethereum network is undergoing a significant update known as The Merge, which will include switching its consensus method from Proof-of-Work (PoW) to Proof-of-Stake (PoS). As a result, the updated Ethereum ecosystem will be more scalable, safe, and decentralized.
Stages of Merges
The transfer of Ethereum to the new algorithm is known as Merge, and it consists of several phases. The first Bellatrix blockchain upgrade is expected on September 6. If the first update is successful, the second, Paris, will be launched when the Terminal Total Difficulty (cumulative network complexity for the requested block) meets the threshold.
The Paris upgrade will be released between September 10 and 20, 2022, depending on the network’s hashing performance. Earlier, Vitalik Buterin, the creator of the Ethereum network, stated that the Merge will take place tentatively on September 15, despite being originally scheduled for late August. During the upgrade, many cryptocurrency services, including bit4you, will cease operations with Ethereum-based coins.
How to prepare for the update?
All bit4you users will be unaffected by the merger since their funds are not involved. All Ethereum currencies will switch to the new network during the merge, and Ethereum will continue to show in users’ wallets as ETH. However, until the merger is finalized, bit4you will temporarily halt Ethereum deposits and withdrawals.
Bit4you strongly recommends avoiding messages from scammers attempting to buy “ETH2” tokens or transfer cash to a random wallet address to “finish the upgrade”.
In this paragraph, we give our readers a comprehensive understanding of how the upgrade may influence Ethereum holders in:
1. Transaction speed
After the merger, Ethereum holders should expect their typical transaction speeds. Most likely, you will not notice these minor changes.
2. Gas fees
For the time being, Ethereum gas costs will remain unchanged. In theory, the Ethereum upgrade lays the groundwork for sharding, perhaps leading to lower gas prices in the future.
The network will no longer be secured by miners but by users that add Ethereum to the staking pool.
The project team aims to work on strengthening the consensus algorithm and post-quantum security in the long run. For this, developers consider the Casper Correct by Construction (CBC Casper) specifications and the ZK-SNARKs zero-disclosure proof protocol.
Furthermore, Vitalik Buterin stated that the team of engineers is putting extra attention into guarding against quantum computer threats. He emphasized that there are solutions to this problem and that a different team within the Ethereum Foundation is working on it.