Ethereum Merge will not reduce gas fees, DeFi researcher says

DeFi trader Vivek Raman, successful a Twitter thread, has argued that Ethereum’s (ETH) anticipated Merge would not bring down the web fees arsenic expected by many.

The Ethereum Merge is 1 of the astir almighty catalysts successful crypto history, and it is rapidly approaching

As we scope the endgame for ETH nether the impervious of enactment regime, let's code 10 important characteristics of post-Merge, impervious of involvement ETH:

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— VivekVentures.eth (@VivekVentures) July 10, 2022

High state fees

According to his tweet, Ethereum’s precocious state fees are due to the fact that of the accrued artifact abstraction request and not a relation of the “consensus mechanism.” He continued that the intent of the Merge is to deprecate Ethereum’s proof-of-work statement mechanics and regenerate it with proof-of-stake.

1. Post Merge, ETH L1 fees volition NOT travel down

The intent of the Merge is to deprecate Ethereum's PoW statement mechanics and regenerate it with PoS. Fees are a relation of blockspace demand, NOT statement mechanism. For little fees, usage the L2s (already live) for execution

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— VivekVentures.eth (@VivekVentures) July 10, 2022

He concluded that the web fees would not travel down; instead, users tin usage layer2 solutions for reduced costs.

Ethereum’s precocious transaction fees is an over-flogged contented successful the crypto space. The network’s precocious fees person pushed galore users to rival L1 blockchains similar Solana (SOL), Cardano (ADA), and others with little state fees.

However, the mean state fees connected Ethereum precocious touched arsenic debased arsenic $1.57, according to data connected BitInfoCharts.

Ethereum volition beryllium much secure

Vivek disagreed with the conception that Ethereum’s proof-of-stake web won’t beryllium secure. According to him, Ethereum volition beryllium much unafraid post-merge due to the fact that it costs much mathematically to attack.

He cited a Vitalik Buterin post to buttress his point. According to Buterin, proof-of-stake networks person superior blockchain information mechanisms compared to proof-of-work.

Sustainability

Ethereum volition go little energy-intensive aft the Merge. This is 1 of the strongest arguments made successful favour of the modulation to the proof-of-stake statement mechanism.

According to Vivek,

Ethereum blockchain volition beryllium much sustainable than the Bitcoin blockchain.

Other issues Merge volition improve

Vivek said helium expects ETH staking output to summation by astatine slightest 50% aft the Merge. Presently, the staking output for ETH is 4.2% and would emergence to implicit 6%, with validators besides getting transaction fees.

Vivek added that Ethereum volition go a integer enslaved that complements the usage cases of Bitcoin (BTC) arsenic a store of worth and collateral arsenic it would beryllium the main collateral plus successful DeFi.

Meanwhile, helium believes that Ethereum volition proceed to evolve, and improvements specified arsenic information sharding, authorities management, staking withdrawals, etc., tin beryllium expected aft the Merge.

Buterin responds to information claims

Ethereum co-founder Vitalik Buterin has criticized proof-of-work supporters who are against proof-of-stake.

It's astonishing however immoderate PoW proponents conscionable support repeating the unmitigated bare-faced prevarication that PoS includes voting connected protocol parameters (it doesn't, conscionable similar PoW doesn't) and this truthful often conscionable goes unchallenged.

Nodes cull invalid blocks, successful PoS and successful PoW. It's not hard. https://t.co/vLEWWsWIsG

— vitalik.eth (@VitalikButerin) July 12, 2022

While responding to Nick Payton’s remark that proof-of-stake networks are securities since their properties tin alteration based connected votes, helium described specified comments arsenic “bare-faced lies.”

This mightiness besides beryllium an indirect effect to a akin claim by Microstrategy CEO Michael Saylor.

Vitalik said the assertion that Ethereum is information mightiness beryllium owed to grammar nuance. He said:

When talking astir things similar impervious of stake, we don’t accidental “it’s a security,” we accidental “it’s secure.” I cognize these suffixes are hard though, truthful I forgive the error.

The station Ethereum Merge volition not trim state fees, DeFi researcher says appeared archetypal connected CryptoSlate.