Ethereum network’s Sepolia testnet merge successful; Will this lead to rally in ETH? 

Ethereum network, the blockchain network with most crypto projects on it, is getting closer to the final merge and subsequent transition to a proof of stake consensus mechanism after the success of its Sepolia testnet merge. Ethereum's long-awaited transition from proof-of-work to proof-of-stake would be finalised post the merge.  

Why was Sepolia testnet merge important? 

The Sepolia testnet merge was essential to ensure that the technology employed is error-free before the final merge and transition to the proof of stake consensus mechanism takes place. 

The changeover of the Ethereum blockchain from proof-of-work to proof-of-stake would take place gradually. 

What is a consensus mechanism? 

 In order to secure the network and validate transactions, blockchain networks use consensus mechanisms like proof of work or proof of stake. The Ethereum network uses proof-of-work, which is comparable to Bitcoin’s consensus mechanism. The native token is another way to reward the miners for their efforts. 

What will change after the transition? 

The transition from a proof of work consensus mechanism to a proof of stake consensus mechanism will change how the Ethereum blockchain network is secured and how blocks on the network are validated. The change will make the network more affordable, quick, and energy-efficient. After the transition, miners will be replaced by validators after they are eliminated. To maintain the network's functionality, validators either lock up or stake ETH.  

How would the transition impact value of ETH token? 

Since a significant quantity of ETH must be locked up in order for the network to function, the change is thought to have a deflationary effect on ETH.  

How far has the network come along in its transition? 

The Ropsten and Sepolia testnet mergers have been completed satisfactorily thus far. The Goerli testnet is the last test before the ultimate merge. When the project is successfully finished, Ethereum will switch to the proof-of-stake consensus. The testing encountered a number of roadblocks along the way, delaying the merge when was anticipated to be finished much earlier. But Vitalik Buterin, the co-founder of Ethereum network has assured the community that the transition might be complete by August this year. 

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