The Merge Ethereum network upgrade finally has a date, but there's a catch

This will happen after one more testnet - the last one before the transition - is converted to PoS. The update is expected to be deployed on the Goerli testnet in the second week of August. Then the blockchain will deploy the Bellatrix update in early September and The Merge will launch two weeks later.

The new network upgrade date is more or less in line with the timeline that founder Vitalik Buterin proposed earlier this year, which planned to launch by the end of August. However, the completion of the final phase in the week of September 19 depends on the smooth execution of The Merge on the Goerli testnet. Although previous testnets successfully deployed the upgrade, it was not without problems.

Most recently, 20 % nodes on the mainnet shadow fork were deactivated after its rollout, raising some concerns about the stability of The Merge. In early May, Ethereum prices fell after the Beacon chain underwent a deep reorganization of 7 blocks. Block reorganization occurs due to inconsistencies in the order of blocks, usually due to malicious activity or error. In this case it was the latter.

Now that we have a date of September 19, the Ethereum Foundation developers will set a timeline for the activation of the "Difficulty Bomb". The difficulty bomb is a gimmick that will make mining extremely difficult and almost impractical. This difficulty is expected to force miners to abandon the PoW model and focus on the new PoS.

How will Ethereum prices react?

The merger is expected to be largely positive for Ethereum prices. Staking rewards can also allow ETH to act as a credit instrument, increasing its institutional appeal.

The move to PoS will likely be the biggest update to the blockchain since the hard fork in 2016 and the creation of Ethereum Classic. Once completed, it will reduce grid power consumption by up to 99 %.

However, Ethereum developers emphasized the fact that the set date is only a rough guideline for the roadmap and the actual launch on the mainnet may vary according to the development of reality.