Demystifying Ethereum Staking & The Merge, Aqeel Mohammad, Ethereum Foundation @ Futurist Conference

Discover the Ethereum Foundation's vision for a more sustainable and secure future, including the Merge and stake rewards, without adding new tokens or mainnets. Learn how staking improves decentralization, security, and scalability.

Key takeaways
  • Moving to proof of stake consensus mechanism reduces energy consumption by approximately 90%.
  • There will be no new token or new mainnet, just a change in the consensus layer.
  • The merge is a change from proof of work to proof of stake consensus mechanism, which will improve security and decentralization.
  • Solo staking is not recommended, and staking pools or decentralized pooling services are more viable options.
  • The cost of a 51% attack increases exponentially with the switch to proof of stake.
  • The execution layer remains the same, and only the consensus layer is changed.
  • Staking does not require constant active participation, and devices like Raspberry Pi can be used.
  • Withdrawals will not be available at the merge and will come later in an update.
  • There will be no direct impact on network activity and fees, and scalability will come through roll-up centric roadmap.
  • Decentralization is improved by increasing the number of validators and participants in the network.
  • The merge is not a fork, and the chain will continue to move forward seamlessly.
  • The terminal total difficulty (TTD) will trigger the transition and once it’s reached, the chain will switch to proof of stake.
  • Slashing is a mechanism to punish bad actors, and it’s not something to worry about.
  • The reality is that Ethereum is moving towards a more sustainable and secure home, and the merge is a significant step towards that goal.
  • The merge roadmap includes a number of testnets and shadow forks to ensure the transition is successful.
  • With the merge, the network becomes more decentralized, and participants have more control over their assets.