Ethereum 2.0: Upcoming Upgrade Will Not Eradicate High Gas Fees

There is a growing expectation of the Merge the Ethereum network’s Beacon Chain and the current Proof-of-Work mainnet to usher the Proof-of-Stake version of the Ethereum network. Protocol There are many misconceptions about the subject that have been propagated to the public.

The Ethereum Foundation (EF). come out to debunk These misconceptions include the gas fee issue.

The EF stated that Ethereum 2.0’s emergence will not bring down gas fees. This is because the upgrade is a change in consensus mechanism and not an increase of network capacity. 

Gas fees are a function of the network demand relative to network capacity. “The Merge disallows proof-of work, transitioning to consensus for proof-of stake for consensus but does not significantly alter any parameters that directly affect network capacity or throughput,” said the EF.

Future rollup technology upgrades, according to the foundation will reduce gas fees. Ethereum’s co-founder, Vitalik Buterin, supported the push for Layer-2 rollups in pushing lower gas prices to acceptable levels.

In addition to the gas fee clamour, the myth that the Merge will bring faster transactions has been corrected. According to the Ethereum Foundation the transaction speed on both the PoW Network and the Beacon Chain has been slightly affected, but the likelihood that the Layer-1 protocol transactions will remain fast is high.

Since December 2020, the Beacon Chain has been running in parallel to the Ethereum mainnet. Since the release of Ethereum 2.0, a lot of debugging was done. The Merge is undergoing a lot of work, so the anticipated launch date for The Merge is September 15-19.

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