Introduction

What is ETH

Ethereum is a ==decentralized blockchain== platform that establishes a peer-to-peer network that securely executes and verifies application code, called smart contracts. Smart contracts allow participants to transact with each other without a trusted central authority. Transaction records are immutable, verifiable, and securely distributed across the network, giving participants full ownership and visibility into transaction data. Transactions are sent from and received by user-created Ethereum accounts. A sender must sign transactions and spend Ether, Ethereum's native cryptocurrency, as a cost of processing transactions on the network.

Benefits of building on Ethereum

Ethereum offers an extremely flexible platform on which to build decentralized applications using the native Solidity scripting language and Ethereum Virtual Machine. Decentralized application developers who deploy smart contracts on Ethereum benefit from the rich ecosystem of developer tooling and established best practices that have come with the maturity of the protocol. This maturity also extends into the quality of user-experience for the average user of Ethereum applications, with wallets like ==MetaMask, Argent, Rainbow== and more offering simple interfaces through which to interact with the Ethereum blockchain and smart contracts deployed there. Ethereum’s large user base encourages developers to deploy their applications on the network, which further reinforces ==Ethereum== as the primary home for decentralized applications like ==DeFi and NFTs.== In the future, the backwards-compatible Ethereum 2.0 protocol, currently under development, will provide a more scalable network on which to build decentralized applications that require higher transaction throughput.

What Is the Ethereum Merge? And What Does It Mean for Crypto Investors?

This ==Ethereum== upgrade or "Merge," as it's being referred to, changed how new crypto transactions take place on the blockchain.

Previously, the ==Ethereum== blockchain, like the Bitcoin blockchain, ran on a proof-of-work model, which involves nodes — computers that are part of a large network — competing with one another to solve complicated math problems. The successful ones are then able to mine the next block of a transaction and create new coins.

The upgrade transitioned ==Ethereum== to the proof-of-stake model, which is a more energy-efficient and environmentally-friendly system. It entails nodes being selected via an algorithm that has a preference for nodes that hold more of a network's currency.

In other words, their "stake" in the network is rewarded over the computer power that's rewarded in the proof-of-work system.

Why did the Ethereum Merge happen?

Proponents say that the transition allows the ==Ethereum== network to reduce its energy consumption by around 99%.

The proof-of-work model, which is what the Bitcoin network uses, requires far more energy than the proof-of-stake model. The negative impact on the environment of ==crypto== transactions has been top of mind for many cryptocurrency critics and advocates alike, and ==Ethereum=='s shift to the less-energy-intensive proof-of-stake is viewed as a significant advance.

It will also set the groundwork for other aspect's of the network's roadmap, like making transactions more efficient.

What does the Ethereum Merge mean for ether's price?

Crypto prices have been through the wringer this year. After an impressive few years that included record-high prices last November, cryptocurrencies like bitcoin and ether have seen significant drops more recently alongside other financial assets, like stocks. Bitcoin is down around 58% from the beginning of the year, and ether is down around 60%.

But this Merge could shake up the price of ether, which had been outpacing bitcoin during much of cryptos' recent recoveries.

“ETH has been outperforming bitcoin largely due to news about the upcoming merge," Ben Weiss, CEO of cryptocurrency ATM company CoinFlip, told Money via email in August ahead of the Merge. "If it goes smoothly, the merge will be an incredible technical feat."

analysis

UniSwap

explanation

The upper left graph shows the total eth withdraw from uni in all days, as you can see, this volume increased in August and the reason was Ethereum's eternity, that is, merg's eternity, it increased just one nah before this big eternity.

The graph on the left shows the total eth take out uni in the two weeks before the merg eternity and other days, the highest volume was in August, just one month before the merg started when eth was bullish in price.

AAVE

explanation

As you can see, the graph on the left shows the total eth supplied in all days, the largest volume was in August, which is the main reason for the great event of merg eternity. Due to the fact that the fate of many altcoins and the crypto market is dependent on this eternity, it has led to the creation of large volumes in the month of August, due to the fact that the crypto market, especially eth, grew relatively well in August, this volume has increased in The data we have obtained

explanation

The two charts on the right compare the total eth supplied in the two weeks before the big eth eternity and other days, the second chart compares the total of usd supplied in the two weeks before the big eth eternity and other days, as in You can see in the graph that this volume has increased on August 9th, especially on August 12th

the method

To get the above data, I first used the data in the tables related to eth, uni swap, and Aave.

ethereum.aave.ez_withdraws

ethereum.compound.ez_redemptions

ethereum.uniswapv3.ez_lp_actions

Also, due to the difficulty of this bunty, I got ideas from some of the codes inside discover

Conclusion

One of the angles of examining Marj's effects is the change of block producers from miners to validators who stake Ether (==ETH==). Currently, the production of ==Ethereum== blocks is done by computers. Computers use computing power and time to process transactions to produce ==Ethereum== blockchain blocks. According to the Proof of Work consensus protocol, this process is called "mining".

In the Marj update, the Proof of Stake (PoS) consensus protocol replaces the Proof of Work (PoW) consensus protocol in the ==Ethereum== Execution Layer. This process is called merge and is not a switch. Because the proof-of-stake consensus protocol exists in China's beacon, where validators run node software to process transactions and create new blocks on that chain. Merge "merges" the new consensus layer provided by China Beacon with ==Ethereum=='s existing execution layer and then stops mining.

After the update, the issuance of mining rewards will be removed. According to recent evaluations, Marj will significantly reduce the issuance of ETH. But there is another issue with circulating supply. In fact, the production of blocks after Marj is stronger than before

First, Marj directly reduces ether issuance, and secondly, it changes the incentive mechanism for block production. You've probably heard talk about Ethereum becoming a pure anti-inflationary token after the Marj. This notion is not necessarily true or definitive. But based on evaluations of Ether (ETH) emission reductions and evaluations of fees burned from using the network, it seems that if Marj is successful, Ether will become an anti-inflationary cryptocurrency.