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What do I need to know about the Ethereum (ETH) Merge?
It’s been long awaited and now the Ethereum (ETH) Merge is finally here. This milestone event is a major upgrade to how consensus is reached on the Ethereum blockchain and It’s expected that Ethereum’s Proof-of-Work (PoW) chain will migrate to the Proof-of-Stake (PoS) chain the week of the 15th of September.
Can I still deposit and withdraw ETH & ERC-20 tokens during the Merge?
All ETH and ERC-20 token deposits & withdrawals are scheduled to be temporarily paused across all Swyftx accounts on the following dates:
- 10:00 AM (AEST) September 15th
- Once the update is completed, the network will reopen
This temporary pause is to allow for upgrades to the network. Please ensure you take these dates into consideration and allow sufficient time for your ETH & ERC-20 token transfers.
Import to note: ETH deposits and withdrawals are already halted for the Arbitrum and OP networks.
What are ERC-20 Tokens?
Can I still trade ETH & ERC-20 tokens after the Merge?
Trading ETH & ERC-20 tokens on the Swyftx platform will not be impacted by the Merge and you can continue to trade as normal after the Merge is complete.
The Merge explained simply:
Essentially traditional Ethereum mining is getting an upgrade. After the Merge, ETH will ditch the highly energy-intensive Proof of Work consensus method used by Bitcoin and transition to a Proof of Stake, reducing its energy consumption by approximately 99.95% and preparing Ethereum for the future. Other benefits include:
- Facilitates future scalability upgrades
- Becoming more decentralised
- Potentially becoming a deflationary asset
For a full breakdown of the Merge, click here.
What will happen after the Merge?
There are two possible scenarios once the Merge is complete.
Scenario 1: No new token will be created. This means deposits & withdrawals for ETH & ERC-20 tokens will reopen as soon as possible. This is the most likely scenario.
Scenario 2: A new token is created (due to the chain splitting into two). Relevant Swyftx users will then be credited the forked token from the minority chain at a ratio of 1:1 (based on the snapshot of ETH balances before the Merge is complete).
Why is the Merge happening?
The main reasons for the Merge are that it will reduce the networks environmental impact, improve network security and will allow for scalability upgrades (i.e. sharding) in the future.
Have questions about the ETH Merge? Our friendly 24/7 Customer Support team are available now on live chat.
