Overview
'The Merge' refers to the point where the original execution layer of Ethereum (the Mainnet) joined with the new Proof of Stake consensus layer (the Beacon Chain). This eliminated the need for energy-intensive mining and replaced it with staking.
Key Outcomes
- Energy Efficiency: Reduced Ethereum's energy consumption by approximately 99.95%.
- Issuance Reduction: The amount of new ETH created per block dropped significantly (often called 'Triple Halving').
- Security: Shifted the security model from physical hardware (ASICs) to economic capital (staked ETH).
Misconceptions
The Merge did not significantly reduce gas fees or increase transaction speeds; those improvements are the focus of subsequent upgrades like Proto-Danksharding and Layer 2 scaling.