ETHEREUM MERGE - The Most Anticipated Event In Crypto Explained

The Ethereum Merge, despite being one of the most significant blockchain upgrades in the history of cryptocurrency, is still a poorly understood topic.
So what is the Ethereum Merge? What are its economic implications? And what are the main merge risks and misconceptions? You’ll find answers to these questions and more in this video.
----Timestamps----
00:00 - Intro
00:31 - Motivations
03:47 - The Mechanics
08:26 - Client Diversity
10:28 - Implications
11:48 - Misconceptions
13:26 - Risks
15:05 - Summary
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[@Finematics]

❓ What do you think about The Merge? Comment down below 👍 Hit the like button if you enjoyed this video 💛 Support Finematics on Patreon and join our Discord community ► www.patreon.com/finematics 🐦 Follow Finematics on Twitter ► twitter.com/finematics 📘 Check out our FREE Guide to DeFi ► finematics.com/guide-to-decentralized-finance/

[@ChiefKapui]

The future of DeFi won't live on Ethereum, let's not forget, the EVM was not purpose built for finance and it does not understand assets at the base level, this is one of the bottlenecks towards mass adoption.

[@zealdmv3314]

Any telegram groups?

[@superphiz6307]

Wow! This is the highest quality information I've seen regarding Ethereum and the merge. Thanks so much for producing it!

[@Thomaspaul519]

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[@AhmedLinkin90]

I go on CT, ethfinance, and now finematics, I see this superphiz dude. Can devs do something?! Thanks for all you do BTW ser!

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[@reiioniichan3608]

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[@christianaemilio1]

I'm buying stable coins and staking them and doing launchpads and waiting for the bottom to happen. However my picks for my buys are for the next crypto bull market in 4-8 years are : BNB, SOL, LUNA, DOGE, AVAX, MANA SAND, STEPN, GALA, ENJ, XRP BTC AND ETH.

[@RDavid.]

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[@Gabrielle..]

Don't venture into the digital currency space because of hype, that will be a big mistake rather seek the advice of an Investment broker who can minimize the risks to maximize good profits you, and your returns depends on your investment capital.

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[@Gabrielle..]

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[@linsey.]

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Super amazing analogy. Would sure share this

[@ouderwetsss]

brother I missed you. welcome back!

[@CryptoWire247]

Always appreciate your videos. Keep them coming. GREAT job.

[@lewishowes1570]

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[@vamsigogula3010]

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[@micahchervin9754]

You crushed it. Thank you.

[@SashaMai]

Hi Finematics, thanks for always simplifying concepts for me.

[@whatsapp6449]

✍️⬆️📩

[@faisalsheikh7846]

Incredible content sir keep it up ❤

[@jb_makesgames2264]

Excellent Description of a complex and misunderstood event!

[@franksmith4687]

Great content as always. Thank You!

[@JMAGvids]

This video deserves so many more views than it has. A+ content sir!

[@jimmychu0807]

Thank you for the fantastic graphics and clear explanation.

[@Oelmiene]

Thank you so much for this highly information packed video!

[@himanshipatel3461]

Thanks for your efforts Helpful

[@ashwath4276]

Excellent educational content, and amazing effort in making such a detailed technical video.

[@cryptohomora]

Great work as always ! It's nice to have a video explaining the merge in simple terms as a lot of people get it wrong. Keep doing what you do and i'll be there to watch and learn thank you !

[@vitorfmello]

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[@searchforearnwithmarcoonte8118]

Thanks for the comments. Much appreciated 👍 feel free to message me directly. Text for questions, investment guide and tip..⬆️. ›

[@brock7814]

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[@juansamitier9319]

Awesome! What tool do you use for the graphics?

[@mrseanpaul81]

awesome as usual!

[@dandewsirbello]

This is manna dropped for those of us wandering in the wilderness of crypto space. Thank you. I wish you make videos often.

[@lherfel]

finematic back!!

[@JoeVanH]

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[@lewishowes1570]

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[@TheYakshie]

We missed you! Thank you for the information. 👍🏻

[@patrickcrypto]

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[@whatsapp6449]

👆📩✍️✍️

[@cryptomeathead1396]

Always expect perfection from this channel

[@theonlyconstantischange123]

Welcome back! We gonna need a video on the merge purge verge and splurge, please and ty

[@AK-hk3hs]

Top class...absolutely brilliant explainer ...bravo 👍👍

[@jeffh3984]

keep in mind that your point about the staking rewards goes both ways. yes, the percent yield goes down as the number of stakers increases, which de-incentivizes further staking. but if people sell off due to low yields, well the rewards then increase, which incentivizes stakng, which brings the number of stakers back up. this self-balancing system controls inflation, and at the same time helps insure that there are always a sufficient number of stakers for network security.

[@cauebraga]

Perfect. Thank you for the update:)

[@Makhehlane]

thank you and welcome bek

[@sarahgibson1204]

Thanks for your hard work ❤️

[@Finematics]

Thanks for watching! :)

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The technology behind blockchain and all the security measures applied to it is mesmerizing. I admire the developers and everyone involved

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Best YT channel.

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You’ve done it again!!!!!

[@BitvilleAlpha]

Masterpiece! Thank you 👏

[@GuyDanielsMusicEtc]

Dependable and clear as always. TY

[@internerperson23473]

liked before watching since I know it will be top content

[@getspitfired]

Wow! What a deep understanding of the topic and great video!!! Thank you!

[@ray-mn3zt]

Great content! it is very clear

[@prathampekamwar8751]

Finally, you returned

[@Finematics]

Thanks for waiting! 🙌

[@princebanini]

Thanks for this informative video.

[@CoconutKai_eth]

Thank you for putting this together!

[@bicameral_B]

I really enjoyed this. This is pure knowledge. Will look out for more of your videos henceforth.

[@cryptochef6772]

Great video!!! You explain things so simply. It would be great if you could do a video on Theta Network.😊

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[@back2d_lobby]

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[@ValarIsLife]

Thanks for video!

[@searchforearnwithmarcoonte8118]

Thanks for the comments. Much appreciated 👍 feel free to message me directly. Text for questions, investment guide and tip..⬆️

[@huangjason6557]

Video is packed with high quality information, much appreciated

[@cryptoethics]

What's ap 👇

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For more trading options

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Great to see! Nethermind is getting recognition..

[@aman__gaur]

Please make a detailed explanation of recently announced zkEVMs 🙏

[@leoem4nuel]

Amazing!

[@hahahasan]

Best informative video on this out there. Great work! Any plans to explain sharding? Or perhaps the differences between Cardano and Ethereum?

[@clinfordbenjamin730]

Sometimes I really wonder how people make huge profit investing in the stock market, I know investing is a legitimate way to gain financial freedom but how is it done?

[@tylerdexter4038]

Investing in stock is a good idea, a good trading system will put you through many days of success

[@josh5623]

@James Michael Building a good portfolio is complex, if you don't know anything about the markets seeking expert support is recommended.

[@josh5623]

Having monitored my portfolio performance which has made a jaw dropping from $360k just the past two quarters alone, I have learned why experienced traders makes enormous returns from the seemingly unknown market.

[@clinfordbenjamin730]

@@josh5623 Interesting. I have a lump sum of cash doing absolutely nothing at all in my bank account, I wanna get something started with it. You seem to be doing excellent for yourself, how did you achieve this?

[@chloefox5943]

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[@ReigBonjux]

Hello will it affect MEV?

[@robertmichael4220]

These past few days watching my crypto portfolio decline is very disheartening. Holding doesn't really profit much. Any ideas on how to earn better on the short run?

[@christinemei1120]

Short term trading is much preferable considering the current market fluctuations.

[@robertmichael4220]

@@christinemei1120 Really, am confused especially in the market analysis, how do people take advantage trading them??

[@xolasuky.web396]

Nice content about the merge❤️

[@whatsapp6449]

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[@Posttraumaticgrowth]

Awesome😍

[@fazilhabib10]

Thanks a lot buddy. for me it's a pure lesson about merge

[@whatsapp6449]

⤴️⬆️✍️

[@johnshort5107]

Thanks man

[@ultraali453]

wow, can't say I understood the technical side but well done. Thank you for the explanation

[@whatsapp6449]

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[@MKI4EVA]

Will have to watch that many times lol.

[@likeme4971]

legend info

[@whosasking9905]

I've heard it before and you confirmed it that transaction fees won't decrease as part of this merge (but due to a different form later). But I'm struggling to understand why if the merge will switch over to PoS. Also, which merge will lower transaction fees (I'm guessing you will go through that in more detail next video). Thanks as always for your time.

[@jiyuu2848]

Because it doesn't increase blockspace so unless blockspace demand goes down it doesn't decrease transaction fees. We're just changing the security model here, and who gets the fees. Sharding will tho and you can already use multiple layer 2s on which transaction fees are much lower than on Mainnet, like arbitrum.

[@CoconutKai_eth]

@@jiyuu2848 agreed

[@whosasking9905]

@@jiyuu2848 oh right, I see where I went wrong, in my mind, the amount of work dictated transaction fees (d'oh). Thanks for the explanation.

[@tylerquinn4886]

Jiyuu is correct, if you want more information on future upgrades that will help scalability and fees, look into EIP-4844 (proto-danksharding) which is a partial step to full dankshard which will increase scaling even further. EIP-4488 is also proposed to lower calldata gas cost which drastically lowers fee for rollups

[@msfconsole5206]

if merge fail and create separate blockchain, is stable coin also doubled? it mean stable coin may lose it peg?

[@novice8921]

Can anybody recommend some more channel like this? I want to know more Blockchain news and Tech about chains

[@suryaservis2089]

thanks .finnaly i can buy graphics for gaming now

[@whatsapp6449]

⤴️⬆️✍️

[@niconoire]

Doesn't the power requirement for confirmation act as a barrier that one must overcome in order to manipulate a confirmation? Wouldn't reducing that barrier by "99.95%" effectively reduce security?

[@Zetaphor]

That's where the "Stake" in PoS replaces the "Work" in PoW. You're replacing spent electricity with economic stake. The cost of attempting to manipulate the network in PoS is also significatnly higher and riskier than PoW, as you would be slashed, meaning your stake is destroyed. You'd then have to buy more ETH to stand up new validators and continue your attack attempt. We're talking $10 billion _just to start_ (51% of all validators at today's prices), and that will be burned in a fire as soon as the slashing mechanism kicks in. An attack on PoW only requires the ongoing electricity costs and the only risk of failure is unrealized gains from creating orphaned blocks. Then once you're done you could sell those ASICs on the secondary market

[@kha_2428]

@@Zetaphor If say for example 10 big stake holders accumulate 50% of the eth.... how do you distribute eth across the network? Does this mean EIP1559 would have to be scrapped because the only solution to this is inflating eth. In a PoW consensus, there are external factors such as geography, free market, politics, etc all requiring them to stay competitive. There's a Darwinian effect at play. Plus....Is a PoS network permissionless??? I don't think so

[@noVanity369]

So what’s the use case for matic after eth 2.0

[@JulienCohenMusic]

What about the size of the nod, which is bigger with time in pos than in pow?

[@khangvutien2538]

Thanks for this very instructive explanation.

[@lys19931030]

Thank you for the content!

[@akhilp3559]

'Babe wake up new finematics video dropped!'

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[@DiegoCarlossouza4]

it's obvious. a lot of people remain poor due to ignorance, it's better to take risks and make sacrifices than to stay poor

[@Kelvin.luther.007]

I came here to learn how to trade after listening to this video I'm still confused, I'm a newbie and I'm open to ideas.

[@christom6145]

The best strategy to use in trading is to trade a professional who understands the market quite well, that way maximum profit is guaranteed. Because I have learned along the way of my investment that research and analysis are important, note that experience is more needed, than luck when it comes to the financial market.

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[@Danilocallejas]

love the videos, but can you get a better mic?

[@thefuturistinvestor]

But will it be centralized?

[@ricerocketmatt]

Where do I get a color changing sharpie?

[@whatsapp6449]

👆✍️✍️

[@patrickm8877]

How does Ethereums POS compare to Cardanos POS that has all of those hard forks done already Bryon and Shelly era Goguen in 2021, Alonzo hard fork, Basho with scaleability and now Vasil within days expected to reduce the cost of large transactions and speed. The last one Voltaire which is due to be completed shortly after the Vasil hard fork. This governance phase will introduce a voting and treasury system that allows holders to have a more direct impact on the decentralised network, as Cardano moves away from IOHK's management. In short, with Ethereum just moving to POS and Cardano well established and with several upgrades completed, does this mean Cardano is more advanced block chain on POS than the new Ethereum 2.0 that has many upgrades and hard forks to complete? I'm trying like many others to understand more. Thanks!

[@janellejacob3799]

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[@MrGrasham1]

Can I invest in stacking the ETH and return get a return in percentage. If so where can I stack ETH?

[@whatsapp6449]

⬆️⤴️✍️

[@naturetvph331]

How the hell are they going to validate blocks with just ethereum coins? All I know is you validate with computer with great processing power

[@a.mustafa9698]

So will Ethereum price go up or down?

[@Solid_Snake1]

So cost of TRX will not be reduced..?

[@codyabel4766]

lets learn

[@Dannydrinkbottom]

I heard finality will increase, is this correct?

[@jcm2606]

Finality will generally increase to ~12 minutes, but there's work being done on single-slot finality which would cut it down to exactly 12 seconds.

[@joeroulston]

when Vasil Hardfork video ?

[@gerard6038]

Is the supposed decline in energy use due to a fixed amount of nodes in the network?

[@bitcoin4065]

truebit part?

[@mileylee1372]

I really like John Templeton's saying that the best time to buy is when everyone is panicking

[@whatsapp6449]

✍️👆📩

[@MrJumzy]

Should. We keep STETH???

[@peterzotti6430]

What is the possibility that eth won't just fork into two? One PoS and one PoW.... ? Don't the miners have any say in it...? Wouldn't you have to make people take their eth and force them to stake their eth... What if most people hold their eth in a non-custodial wallet? Do you have to migrate to the staking contract...? Will the merge be automatic...? I suspect people will have to manually migrate their eth...

[@slabzxxshorts9044]

Fluctuation doesn’t affect the profits on *wtrade inspects* while trading

[@tiamiyuyusuff2559]

THIS IS HELPFUL but what happens if the miners keep mining?

[@johnreichl4657]

The rest of the network ignores them so they're doing it for nothing

[@jayfinne626]

It’s economic implications mean a handful of stakers have complete control over your money.

[@johnreichl4657]

Nope, lots of very smart people have worked long and hard to make this secure. It's way cheaper for someone to run a node than to operate a mining datacenter.

[@jayfinne626]

@@johnreichl4657 in ETH a node is a bigass unaffordable datacenter. You guys made your chain so large and complex without any concern that the cost to actually run the hardware with the storage capacity required to run a FULL eth node went sky high and when it went sky high the people at the top of ETH changed the definition of “full node” to “archival node.” This is why hardly anybody in ETH runs one and miners don’t store data in bitcoin, they hash blocks which get broadcasted and verified by the rest of the network, the bitcoin nodes are the ones that store copies of the ledger. You really should watch tomer strolights video “the problems with Ethereum.” Bitcoins chain was kept simple enough intentionally so that the hardware required to run a node would remain cheap and accessible to anyone. I actually run a node on BTC, it would’ve cost me 10X as much to do the same on Ethereum, all of you are trusting someone else to run one for you like AWS, Lido and coinbase.