The Ethereum core developer team decided to delay the “difficulty bomb” to August 2022, which also means “The Merge” will be delayed again even though the testnet test was successful.
Ethereum’s 6th Postponement
The Ethereum core development team had a meeting last Friday regarding the “difficulty bomb,” a key catalyst in the long-anticipated “The Merge.” After discussing some bugs arising from the testnet, they proposed EIP-5133 delay the difficulty bomb to August. This is the 6th time this bomb has been delayed since 2017.
Developer Tim Beiko posted the following tweet:
After many “broken promises” about the moment of transition to Proof-of-Stake (PoS), veteran ETH developer Preston Van Loon also shared during the Permissionless conference that The Merge looks like it will start in August if “everything goes according to plan”.
The Merge is the current Ethereum 1.0 (using Proof-of-Work, mining) blockchain integration event, with the Ethereum 2.0 blockchain (using Proof-of-Stake, staking money) under construction. This is the most important milestone in Ethereum’s history up to the present time, when this blockchain accepts changes to the consensus algorithm to both solve the problem of scale and minimize the environmental impact of mining activities.
The “Difficulty Bomb” is a mechanism that increases the difficulty of mining ETH over time. Once this bomb is activated, it will make the Ethereum network extremely difficult to mine, forcing miners to switch to the Proof-of-Stake transaction validation mechanism.
The difficulty bomb is a source code that was included in Ethereum’s code in 2015 as a measure to force validators to move towards The Merge. The rollout of The Merge testnet on Ropsten early last week was a success.
On the other hand, if the difficulty bomb is executed at the wrong time, possibly stopping Ethereum before The Merge completes, which will also lead to dire consequences for the entire industry.
The current market continues to set a record low of 2022, leaving the top two coins untenable as well. In particular, the world’s second largest cryptocurrency, Ethereum (ETH), has spent 10 consecutive weeks closing red candles, down to $1,304, having lost 63% of its value from the beginning of April until now. It can be concluded that the testnet merge on Ropsten earlier this week clearly did not save the current situation.
Ethereum has been entangled in many “controversies” in recent times. The “fud” related to stETH being depegd and lending platform Celisus on the verge of default as severe ETH-related liquidity problems caused the price of ETH to continuously slide down a series of days of loss.
ETH is currently trading at $1,370 on Binance, down nearly 72% from its historic peak of 4,891 last November.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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