Everything you need to know about Bitvavo handling the merge of Ethereum from Proof of Work (PoW) into Proof of Stake (PoS).
The Merge represents the joining of the existing execution layer of Ethereum (the Mainnet we use today proof of work (PoW) with its new proof of stake (PoS) consensus layer; the Beacon Chain. It eliminates the need for energy-intensive mining and instead secures the network using staked ETH. Click on the links to learn more about the difference between PoW, PoS and what their pros and cons are.
- The Merge is expected to take place between the 10th and 20th of September 2022;
- As a Bitvavo customer holding ETH in your hosted wallet, you don't have to do anything;
- Deposit & Withdrawals of ETH and all other ERC-20 tokens will be paused during the Merge;
- Trading is unaffected and will be possible;
- Bitvavo will evaluate to support (through our standard listing process) the possible forked tokens after the merge is fully completed.
Before the Merge
You don't have to do anything. The Merge will not affect the Ethereum you hold in your hosted wallet at Bitvavo. All Ethereum funds will still appear as ETH in users’ wallets during and after The Merge.
During the Merge
Bitvavo will briefly stop Ethereum (ETH) and all other ERC-20 token deposits and withdrawals. Although the Merge is expected to be seamless from a user perspective, this downtime allows us to ensure that the transition has been successfully reflected by our systems. We do not expect any other networks or currencies to be impacted and expect no impact on trading for ETH and ERC-20 tokens.
Please ensure you take sufficient risk measures as price volatility is often high during contentious hard forks.
After the Merge
After The Merge, all our ERC-20 tokens (including ETH) will run on the PoS blockchain. As a reminder, ETH2 is a common ticker people use but be aware - there is no ETH2 token. Your ETH token before the Merge stays your ETH token after the Merge (it only operates on the new PoS blockchain).
When will the Merge happen?
The exact date of the merge is dependent on the difficulty. Read more about this here.
With the current development within the difficulty, the Merge is to take place between the 10th and 20th of September, find a more exact estimation here.
I have Ether (ETH) and I want to keep them in my Bitvavo-account
You keep them, you don't have to do anything. The Merge will not affect the ETH and ERC-20 tokens you hold in your hosted wallet at Bitvavo.
Can I keep trading during The Merge?
Yes, Bitvavo will continue to facilitate trading during The Merge.
Does the Merge affect other crypto assets I own?
Yes, there are more than 100 crypto assets listed on Bitvavo that are transferable over the Ethereum network (ERC-20). All these assets will be tradable during the merge, but deposits and withdrawals are also temporarily suspended.
Will my Ether deposit address change during The Merge?
If you have deposited ETH or any other ERC-20 asset in the past we have provided you with an Ethereum-hosted wallet address. This address will remain the same.
|Ethereum||When we talk about Ethereum we talk about the complete ecosystem.|
|Ether (ETH)||The native cryptocurrency used by the Ethereum ecosystem, which covers gas costs when executing transactions. Also written as ETH.|
ERC-20 refers to a scripting standard used within the Ethereum blockchain. This technical standard dictates a number of rules and actions that an Ethereum token or smart contract must follow and steps to be able to implement it (for example USDT and USDC are ERC-20 tokens).
|Proof-of-Work (PoW)||Ethereum, like Bitcoin, currently uses a consensus protocol called Proof-of-Work. This allows the nodes of the Ethereum network to agree on the state of all information recorded on the Ethereum blockchain and prevents certain kinds of economic attacks.|
Proof-of-stake (PoS) is the consensus mechanism that Ethereum will use after The Merge. Ethereum is moving off of proof-of-work (PoW) to proof-of-stake because it is more secure, less energy-intensive, and better for implementing new scaling solutions.
|The Merge||While it has always been the plan to transition to proof-of-stake, it is also more complex than proof-of-work, and refining the mechanism has taken years of research and development. The challenge now is to implement proof-of-stake on Ethereum Mainnet. This process is called "The Merge".|