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The Merge

Ethereum’s 2022 transition from proof-of-work to proof-of-stake consensus.

Definition

Ethereum’s 2022 transition from proof-of-work to proof-of-stake consensus.

Why it matters

Ethereum-specific terms explain its execution environment, standards, accounts, and scaling roadmap.

How it works

The Merge turned off the proof-of-work consensus where miners solved math problems to secure the network. Instead, it enabled the proof-of-stake consensus layer (the Beacon Chain) to become the final authority for all transactions, where validators now reach consensus based on their staked assets.

Real-world example

Immediately after The Merge, the carbon footprint of the Ethereum network dropped by nearly 100%, effectively silencing criticisms regarding the network’s environmental sustainability.

Advantages

  • Over 99% energy reduction
  • Improved economic sustainability for ETH
  • Foundation for future scalability

Limitations

  • Did not immediately solve gas fees
  • Requires long-term validator health
  • Complexity introduced new risk vectors

Common misconceptions

  • Many people believe The Merge lowered gas fees, but it was purely a consensus transition and not a scalability upgrade.
  • Some thought the transition would cause the network to go offline, but the switch occurred seamlessly without downtime.

Canonical knowledge ID: glossary:the-merge