Most straightforwardly, Merge is the Ethereums long-planned update, designed to make Ethereum better. The merge is an important event for the Ethereum network, because Ethereum 2.0 will be upgraded with the use of the next-generation consensus. Merge will be an overhaul to the consensus mechanism in Ethereum, moving the Ethereum network from proof-of-work (PoW) consensus to proof-of-stake (PoS) consensus.
The Ethereum update includes multiple changes to the Ethereum infrastructure, starting with a switch from a Proof-of-Work (PoW) consensus mechanism to a Proof-of-Stake (PoS) consensus mechanism, followed by the Sharding Chain, and additional updates further down the line. Under Ethereums merge, the current Ethereum mainnet will be merged into a proof-of-stake system, Beacon Chain. The specific process will involve combining the current Ethereum Blockchain with the new beacon chain, as part of an overall upgrade to the network. The merger will merge Ethereums mainchain (ETH1) and the new Beacon Chain (ETH2) into a single, unifying blockchain.
Once the merge is completed, Ethereums Mainnet will move away from Proof-of-Work, instead embracing Beacon Chains Proof-of-Stake mechanism. Once the merge happens, stakers will be assigned to verify the network on the Mainnet. When it is ready, the Ethereum Mainnet merges into Beacon Chain, becoming a separate shard that uses Proof-of-Stake rather than Proof-of-Work. Merging to Ethereum Blockchain has been delayed multiple times in the past, the Beacon chain, running parallel to the Ethereum Blockchain mainnet, is ready to merge to ETH Blockchain, switching to Proof-of-Stake.
After successfully merging with PoSs Beacon Chain, Ethereum 2.0 is going to merge into the next upgrade to Ethereum, scheduled for release in 2023. If the merger goes through as planned, this will be an innovative development of Ethereums blockchain, which, of course, has many cryptocurrency enthusiasts extremely excited. The Merge is coming, and will be the most meaningful and significant update of Ethereums network so far. Called the Merge, it will signal the definitive end to Proof-of-Work Ethereum as we know it today, and will usher in Ethereum 2.0 -- the version which will be powered by the Proof-of-Stake consensus algorithm.
Set to propel Ethereum towards its release date for Ethereum 2.0, this specific process will enable the network to switch mechanisms and adopt PoS consensus, which uses elements from staking in Ethereum. Once Ethereum switches to a Proof-of-Stake consensus mechanism after fusion, Ethereum will rely on trusted entities known as validators to validate transactions and add new blocks to its network. To fully implement the switch, the Ethereum history in the PoW Ethereum blockchain will be preserved while a PoS consensus layer is being integrated as the replacement to PoW.
