Cryptocurrency change FTX has introduced that it shall briefly freeze buying and selling Ether (ETH) on a number of blockchains as the Ethereum Merge nears.
The halt will final till The Merge is accomplished as a means of taking further precautionary measures to safeguard buyers’ funds throughout the Ethereum improve.
After the Merge, Ethereum blockchain will regularly change from a Proof-of-Work (PoW) consensus mechanism to a Proof-of-Stake (PoS) consensus mechanism.
FTX mentioned:
“As the ETH merge approaches, FTX will temporarily disable blockchain transfers of secondary chains for ETH to make sure that settlement is clean; the main chain ETH will stay active for longer.”
FTX’s transfer comes regardless of Ethereum builders’ assurance that the Terminal Total Difficulty (TTD) is what’s going to enable the Merge to change to PoS with no downtime. TTD will allow the transition primarily based on the entire mining energy that may go into producing the brand new chain.
The Merge won’t decrease gasoline costs
Depsite switching from PoW, which is taken into account extra expensive, to PoS, which is taken into account to be cheaper, the Ethereum Foundation has said that the Merge won’t outcome to a discount of gasoline costs.
An announcement from Ethereum Foundation reads:
“Gas fees are a product of network demand relative to the network’s capacity. The Merge deprecates the use of Proof-of-Work, transitioning to Proof-of-Stake for consensus, but does not significantly change any parameters that directly influence network capacity or throughout.”