The Ethereum Merge date is coming, and many people are concerned about the destiny of Layer 2 scaling solutions. You may have noticed that Ethereum-related cryptocurrencies and tokens such as MATIC have risen significantly in recent weeks. However, the move to proof-of-stake will address some of Ethereum’s scalability problems, raising concerns regarding the future of L2s. The Merge may threaten the future of , one of the Layer 2 solutions. However, that is unlikely to be the case.
With all eyes on Ethereum, there are a lot of concerns about what Ethereum’s switch to PoS means for Polygon. How will the Merge affect Polygon? The Polygon team’s answer: the Ethereum Marge is only good news for Polygon. Let’s see why.
Why Is Ethereum Merge Good for Polygon?
The Merge implies that Ethereum, like Polygon, will be more environmentally friendly. However, it will not reduce Ethereum’s gas fees or boost its speed. The Ethereum network relies on Polygon and other Layer 2 solutions to deal with this.
The Merge prepares Ethereum for future improvements such as sharding, which will help in its growth and scalability. However, as Ethereum develops, so should Polygon. Every advancement made to Ethereum as a settlement layer increases Polygon’s value.
SOURCE: Polygon
The Merge reduces Ethereum’s large carbon footprint while potentially improving security and lowering ETH inflation. Polygon benefits from Ethereum’s increased security and overall ecosystem expansion, while Ethereum benefits significantly from the Polygon companies’ range of scaling solutions, including the recently released Polygon zkEVM. So proof-of-stake changes the narrative: Ethereum is now similar to Polygon, a much more environmentally friendly network.
What Is Merge?
The Merge represents a shift in the method through which Ethereum’s decentralized network achieves consensus, from proof-of-work (PoW) to proof-of-stake.
The network is being upgraded in two stages:
- The development of a parallel PoS chain, dubbed the Beacon Chain, in December 2020.
- The upcoming “Merge” of the Beacon Chain with the current network in mid-September.
The two-step method is used for security reasons. Ethereum engineers have been stress testing the Beacon Chain for the last 20 months, rehearsing the Merge on testnets and shadow forks. They have stomped out problems in the code, and when the Beacon Chain merges in September, Ethereum will have completed the most technologically complex upgrade in its history.
What Is the Future of Ethereum and Polygon?
Polygon and Ethereum have a symbiotic future. With the recent Polygon zkEVM development, they have built cutting-edge technology that will execute transactions at significantly lower prices and faster speeds. It is necessary to onboard a billion people to the Ethereum ecosystem.
The Ethereum roadmap describes a concept for the network to operate as a settlement layer for Layer 2 solutions such as Polygon. Ethereum’s core developers consider it as the basis on which the L2s will develop their security and where transactions will be posted.
Any expansion in the settlement layer only emphasizes Polygon’s qualities: the speed, lower transaction costs, and ease of use that help to the realization of Web3.
