Ethereum’s The Merge marks one of the most significant transformations in blockchain history — the full transition from energy-intensive Proof-of-Work (PoW) mining to a sustainable, secure, and scalable Proof-of-Stake (PoS) consensus mechanism. This upgrade unites Ethereum’s existing execution layer (commonly known as the mainnet) with the Beacon Chain, a PoS consensus layer launched in December 2020. The result? A greener, more efficient network that lays the foundation for future scalability and innovation.
This guide clarifies what The Merge truly means, debunks widespread myths, outlines key technical changes, and explains what users, developers, and validators need to know.
Understanding the Merge: How Ethereum Evolved
At its core, The Merge is the integration of two parallel blockchains: the original Ethereum mainnet (the execution layer where transactions and smart contracts operate) and the Beacon Chain (the new consensus layer). Before The Merge, these chains operated independently. After The Merge, the Beacon Chain became the official consensus engine for Ethereum, responsible for validating blocks and securing the network through staked ETH.
👉 Discover how Ethereum’s new consensus model enhances network security and efficiency.
This shift eliminated mining entirely. Instead of miners competing to solve complex puzzles, validators — users who stake 32 ETH — now propose and attest to blocks. This change drastically reduces Ethereum’s energy consumption by over 99%, aligning it with global sustainability goals.
Importantly, no transaction history was lost during the transition. All account balances, smart contracts, and decentralized applications (dApps) continued seamlessly on the upgraded network.
What Users and Holders Need to Know
For most Ethereum users and ETH holders, no action was required before or after The Merge. Whether you hold ETH in a wallet, use dApps, or own NFTs, your assets remained safe and fully functional. There was no need to "upgrade" tokens or migrate funds.
⚠️ Critical Warning: Scammers often exploit major network upgrades. Be cautious of phishing attempts claiming you must send ETH to "activate" your holdings or "convert to ETH2." There is no ETH2 token. The term “Eth2” has been deprecated — there is now only Ethereum.
All ETH on the network post-Merge is the same digital asset. No rebranding, no token swap, no user-side migration.
Roles and Responsibilities: Node Operators & Developers
Validators and Staking Providers
If you operate a staking node or run infrastructure for others, preparation involved several technical steps:
- Run both an execution client and a consensus client — These communicate via a shared JWT token to ensure secure data exchange.
- Set up a fee recipient address — This is where transaction tips (priority fees) and MEV (Maximal Extractable Value) rewards are sent.
- Ensure client synchronization — Post-Merge, validators must receive execution payload data directly from their own execution client.
Non-Validating Node Operators & Infrastructure Providers
Even if you're not staking, running a node supports decentralization. You must:
- Install both consensus and execution layer software.
- Authenticate the two clients using a shared JWT secret.
- Maintain reliable connectivity to support network health.
dApp and Smart Contract Developers
The Merge introduced subtle but important changes relevant to on-chain logic:
- Block time consistency: Blocks are now produced every 12 seconds (one slot), with occasional empty slots.
- New randomness source:
RANDAOreplaced block difficulty as the primary source of on-chain randomness. - Finality and safety: Concepts like "safe head" and "finalized checkpoint" are now critical for secure dApp design.
- Opcode adjustments: Some opcodes like
DIFFICULTYnow return PoS-derived values instead of PoW data.
Developers should test applications under PoS conditions and adjust logic relying on mining-based assumptions.
Debunking 8 Common Misconceptions About The Merge
❌ Myth 1: “You need 32 ETH to run any node”
✅ Truth: Anyone can run a non-validating Ethereum node for free. Only validators — those producing blocks — must stake 32 ETH. The vast majority of nodes validate transactions and maintain decentralization without any financial commitment.
❌ Myth 2: “Gas fees will drop after The Merge”
✅ Truth: The Merge did not increase Layer 1 throughput or reduce congestion. Gas fees remain market-driven, based on demand. Scalability solutions like rollups (Layer 2) are the real path to lower fees.
👉 Learn how Layer 2 solutions are shaping Ethereum’s scalable future.
❌ Myth 3: “Transactions will be much faster post-Merge”
✅ Truth: Block production increased slightly — from ~13.5 seconds average under PoW to a fixed 12-second interval under PoS. However, this minor improvement doesn’t equate to noticeable speed gains for users.
❌ Myth 4: “You can withdraw staked ETH immediately after The Merge”
✅ Truth: Withdrawals were not enabled at The Merge. They were introduced later via the Shanghai upgrade in April 2023. Until then, staked ETH and rewards remained locked.
❌ Myth 5: “Validators earn no usable rewards until withdrawals are live”
✅ Truth: While staked principal and staking rewards were locked, transaction tips and MEV were sent directly to validators’ withdrawal addresses and were spendable immediately.
❌ Myth 6: “All validators will exit as soon as withdrawals are enabled”
✅ Truth: Exit rates are capped for security. Only 6 validators per epoch (~1350 per day) can fully withdraw. Additionally, partial withdrawals of excess ETH above 32 are prioritized. With over 20 million ETH staked, mass exodus is technically impossible.
❌ Myth 7: “Staking APR will triple after The Merge”
✅ Truth: While staking rewards increased due to reduced issuance and fee capture, estimates showed an APR rise of around 50%, not 200–300%. Actual returns depend on total staked supply and network activity.
❌ Myth 8: “The Merge caused network downtime”
✅ Truth: The transition was designed for zero downtime. Blocks continued uninterrupted, with PoS taking over seamlessly from PoW — a testament to Ethereum’s robust upgrade architecture.
What Happened to “Eth2”?
The terms “Eth1” and “Eth2” are obsolete. Post-Merge, there is only one Ethereum network, composed of two layers:
- Execution Layer: Handles transactions, smart contracts, and account states.
- Consensus Layer: Manages PoS validation via the Beacon Chain.
This unified terminology reduces confusion and reflects Ethereum’s cohesive evolution.
How The Merge Fits Into Ethereum’s Roadmap
The Merge & the Beacon Chain
The Beacon Chain wasn’t a replacement — it was the foundation. Launched in 2020, it ran parallel to mainnet, allowing validators to practice consensus before the real merge. Once integrated, it became Ethereum’s new heartbeat.
The Merge & Shanghai Upgrade
To ensure a smooth transition, certain features — like staking withdrawals — were deferred. The Shanghai upgrade (April 2023) activated these capabilities, allowing validators to exit and access staked funds.
The Merge & Sharding
Originally, sharding was expected before The Merge. However, the explosive growth of Layer 2 rollups shifted priorities. Now, sharding focuses on data availability — storing compressed rollup data across shards to exponentially increase capacity. This evolution depends on a secure PoS foundation established by The Merge.
Frequently Asked Questions (FAQ)
Q: Did I need to do anything as an ETH holder during The Merge?
A: No. Your funds were automatically carried over. No action was required.
Q: Is Ethereum now fully scalable after The Merge?
A: Not yet. The Merge improved sustainability and security. Scalability will come through Layer 2 rollups and future upgrades like proto-danksharding.
Q: Can anyone become a validator?
A: Yes, technically — but it requires staking 32 ETH and running infrastructure. Alternatively, users can participate via liquid staking protocols.
Q: How much energy does Ethereum save after The Merge?
A: Over 99.95% reduction in energy consumption compared to PoW mining.
Q: Are block rewards now paid in ETH?
A: Yes. Validators earn new ETH issuance plus transaction fees and MEV — all in ETH.
Q: What comes after The Merge?
A: Upgrades like EIP-4844 (proto-danksharding), Verkle trees, and full sharding aim to enhance scalability, privacy, and performance.
Final Thoughts
The Merge wasn’t just an upgrade — it was a revolution in blockchain sustainability and design. By transitioning to Proof-of-Stake, Ethereum strengthened its security, slashed environmental impact, and paved the way for a scalable future driven by Layer 2 innovation.
Whether you're a casual user or a core developer, understanding The Merge helps you appreciate Ethereum’s long-term vision: a decentralized, accessible, and resilient digital economy.
👉 Stay ahead in the evolving world of blockchain with insights from leading crypto platforms.