What is ETHEREUM MERGE?
The merge is an update of the Ethereum network, bringing a transition to a new consensus system. For the Ethereum network, this means the end of the proof of work system and the transition to the so-called Beacon chain, which works on the principle of proof of stake. This also allows for faster transactions and better scalability.
What is PoW: Proof-of-Work
The Proof-of-Work consensus means that the miners that mine the cryptocurrency run the network.
They receive a reward for their work. But of course, this reward isn't physical. Miners use computing power, and after calculating the hash function and creating a new block, they are rewarded for extracting the cryptocurrency. PoW uses, for example, Bitcoin or Litecoin for its operation.
What is PoS: Proof-of-Stake
The Proof-of-Stake consensus isn't based on mining (like Proof-of-Work) and is less energy intensive.
The blockchain transaction verification mechanism is based on validators who lock their coins and receive a reward as transaction fees for this verification.
What is purpouse of The Merge?
The primary goal of The Merge is to improve scalability, making the network better able to handle large amounts of transactions without delays and high fees. Currently, the Ethereum network can only process 15 transactions per second. After the update, the network capacity will increase by 999900%.