<h2>How will the market be affected by The Merge?</h2><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed2e92ad7f2d1ca8e6023f659fee92.jpg" alt="What comes next after The Merge?" title="What comes next after The Merge?" width="600" height="400"></p><h3>Impact of The Merge on Ethereum network</h3><p dir="ltr">After <strong>The Merge</strong>, Ethereum's power consumption will drop a lot, according to some industry experts. Therefore, the power consumption used to operate the Ethereum network will decrease by 99.95%, equivalent to a decrease of 2000 times. The Merge will bring stability to the entire ecosystem. Ethereum <strong>changed from PoW to using PoS</strong>, with these capacity improvements, projects built on Ethereum will be more advantageous when the cost and speed are significantly improved. This upgrade will partly reduce the dependence on <a href="https://www.builder.news/crypto-insights/5-facts-about-layer-2" alt="5 facts about Layer 2 - An optimal solution for Ethereum" title="5 facts about Layer 2 - An optimal solution for Ethereum" target="_blank" rel="" class="">Layer 2 on Ethereum</a> when the risk of hacking/exploiting across bridges from Ethereum to L2 is increasing.</p><h3>Market Impact</h3><p dir="ltr">The Merge has a lot of potential to become a strong bull market push in the short term if Ethereum 2.0 gets a steady start and continues to grow.</p><h4>For ETH</h4><p dir="ltr">For ETH itself, it is expected to grow strongly because when implementing the PoS consensus system, the need to reserve ETH to be able to Stake and become a Validator of the Ethereum network increases sharply, which will help the value of ETH to grow. In the long term, if the Ethereum 2.0 chain can operate stably, ensuring cost, scalability, decentralization and security, this will help Ethereum grow and develop sustainably when it meets green needs and is proposed by major global organizations.</p><h4>For layer 1 platforms</h4><p dir="ltr">The battle between <a href="https://www.builder.news/crypto-insights/guide-to-evaluate-layer-1-platforms-dhANJ" alt="An Ultimate Guide To Evaluate Layer 1 Platforms" title="An Ultimate Guide To Evaluate Layer 1 Platforms" target="_blank" rel="" class="">Layer 1 platforms</a> will be quite fierce as Ethereum's upgrade is a huge step forward. It can be said that Ethereum is the oldest in Layer 1, and the cash flow also accounts for the largest proportion. Although gas fees &amp; speeds are still high, developers still choose Ethereum as the platform to build their projects. Therefore, when The Merge event takes place successfully, it is inevitable cash flow will be pulled back to Ethereum. This requires Layer1 platforms to innovate in order to compete.</p><h4>For layer 2 platforms</h4><p dir="ltr">For Layer 2 platforms it is expected that The Merge will be a big purge, especially for layer 2 platforms that only focus on solving the speed and fees of the Ethereum network because when The Merge takes place successfully: speed, scalability and cost of Ethereum will be improved. However, layer 2 platforms that keep the security of Ethereum will still have a lot of growth potential, and growth in the long term.</p><p><em><strong>&gt;&gt;&gt; Read a detailed article about:&nbsp;</strong></em><a href="https://www.builder.news/crypto-insights/where-will-layer-2-solutions-be-after-the-merge-nYC1i" alt="Where will Layer 2 solutions be after The Merge?" title="Where will Layer 2 solutions be after The Merge?" target="_blank" rel="" class=""><em><strong>Where will Layer 2 solutions be after The Merge?</strong></em></a></p><h4>For networks using the PoW consensus mechanism</h4><p dir="ltr">It is expected that the coins and ecosystems using this consensus mechanism will achieve strong growth in the short term due to the "landing" of Ethereum miners. This will help these Blockchain networks become more decentralized and powerful, thereby attracting more users and also creating an opportunity for these Blockchain networks to rise and gain a better foothold in the crypto market.</p><h4>The overall impact on the entire market</h4><p dir="ltr">In terms of the entire crypto market, if The Merge takes place successfully and the Ethereum 2.0 network comes into operation stably, in the long term this will spur large investment funds and technology corporations to participate in the market. Crypto market, this makes it possible for the market to grow sustainably with money sources and customer files from the giants of the technology market.</p><p dir="ltr"><em><strong>&gt;&gt;&gt; Read more: </strong></em><a href="https://www.builder.news/crypto-insights/how-ethereum-proof-of-stake-affect-miners-swTcG"><em><strong>How will Ethereum's Proof of Stake affect miners?</strong></em></a></p><h2>What’s coming up?</h2><p dir="ltr">At the recent Ethereum Community Conference in Paris, Vitalik Buterin, the founder of Ethereum, <strong>unexpectedly revealed the first plans</strong> for the development of the platform after switching to Proof-of-Stake. This comes after the Ethereum team successfully activated the historic Shadow Fork version of the MEV (Miner-Extractable Value) feature and determined the expected time to deploy The Merge in the third week of September (PoS). Vitalik Buterin spoke openly about <strong>what will happen after The Merge</strong> at the conference. As a result, Ethereum will need to undergo additional upgrades separated into the following phases:</p><ul><li><p dir="ltr"><strong>The Merge</strong> — Full transition to PoS.</p></li><li><p dir="ltr"><strong>The Surge</strong> — Massive scalability increases for rollups through sharding.</p></li><li><p dir="ltr"><strong>The Verge</strong> — Statelessness through Verkle trees and related features.</p></li><li><p dir="ltr"><strong>The Purge</strong> — Eliminating historical data and technical debt.</p></li><li><p dir="ltr"><strong>The Splurge</strong> — Miscellaneous but important extras.</p></li></ul><p class="prosemirror-p-center"><img src="https://lh3.googleusercontent.com/pgAIYUIU99uUnDqEtnwZ-dUg5VfuYjEh30g4gR8zfEmP8HJGqP6QtxduwgxXveslRUNFrzPspQQPe_1GUTBHWDAmvSjhraA7PSO1cTKsTVfQFRmGnY5DXYcTMvzI2gKLfXC5CUoJNBeq-GqKlqdxHaceTVopoHqXvVXDgHX_hRTkzQxwWJXRQIdk_A" alt="What comes next after The Merge?" title="What comes next after The Merge?" width="624" height="689"></p><p class="prosemirror-p-center"><em>Ethereum's upcoming phase (Source: Vitalik Buterin)</em></p><h3>The Surge</h3><p dir="ltr">The <strong>"Surge"</strong> refers to Ethereum introducing mechanisms that will enable the production of layer 2 or companion products, such as sharding and rollups, and so make it simpler for users to function on the Ethereum network. These systems will make the network more expandable (scalable).</p><h4>Sharding</h4><p dir="ltr"><strong>Sharding</strong>, a computer science technique, allows applications to scale so they can support more data. Each user may store a portion of the modification to the database rather than the complete thing if sharding could be implemented on Ethereum. On Ethereum, sharding is anticipated to be implemented at this phase. Sharding would divide the whole Ethereum network into smaller units known as "shards," with the goal of enhancing the network's scalability. This is accomplished by fragmenting data within a single blockchain, thereby producing numerous mini-blockchains. Once the protocol switches to proof-of-stake, doing this is a lot simpler. The next step for Ethereum will be to physically shard a system of 64 linked databases. Sharding is anticipated to be put into practice starting in 2023.</p><h4>Rollups</h4><p dir="ltr">With the addition of rollups, Ethereum developers hope to increase the scaling capabilities of their platform. Rollups carry out transactions outside of layer 1, the foundation layer of Ethereum, and then publish the transaction data there, taking advantage of the primary Ethereum security chain. Although many have said that rollups are still some time off, the launch of some more recent projects, such as zkSync and Polygon zkEVM, demonstrates that Ethereum's next stage is actually closer than previously thought.</p><p dir="ltr">There are currently two types of rollups: <a href="https://www.builder.news/crypto-insights/optimism-price-surge-everything-happens-for-a-reason-vRZix" alt="Optimism price surge: Everything happens for a reason" title="Optimism price surge: Everything happens for a reason" target="_blank" rel="" class="">Optimistic rollups</a>, which assume transactions are valid for a default period and run on layer 2 networks before being passed back to the base layer, and <strong>Zero-Knowledge rollups (ZK rollups)</strong>, which run the transactions off-chain and submit the proof of validity to the layer 1 network. Overall, ZK rollups hold some computational advantages over Optimistic rollups, given that they will have to provide proof that the transaction is valid instead of having a time period to accept or reject the transaction. Optimistic rollups initially appeared to be the best method for scaling the Ethereum network, but with ZK rollups on the way and the sharding process set to begin in 2023, there are still plenty of opportunities to scale Ethereum.</p><p><em><strong>&gt;&gt;&gt; Discover more about:</strong>&nbsp;</em><a href="https://www.builder.news/crypto-insights/optimistic-rollups-zkrollups-EzsWo" alt="Optimistic Rollups versus ZK-Rollups - What is more optimal for Layer 2?" title="Optimistic Rollups versus ZK-Rollups - What is more optimal for Layer 2?" target="_blank" rel="" class=""><em><strong>Optimistic Rollups versus ZK-Rollups - What is more optimal for Layer 2?</strong></em></a></p><h4>Danksharding</h4><p dir="ltr">Moreover, <strong>Danksharding</strong> has noticed a rise in interest in the world after the Merge. Ethereum enthusiasts have resorted to this prototype as a means of making Ethereum more scalable, even though Buterin did not expressly discuss the idea in Paris. A similar idea of breaking the network into shards is used in Danksharding, however, instead of using the shards to increase transactions, Danksharding uses them to expand space for groups of data. As a result, Ethereum is able to process more data.</p><h3>The Verge</h3><p dir="ltr">Verkle trees, which will also address the issue of scalability, will be introduced in the following phase. For context, Merkle trees transform data blocks into lengthy strands of code in order to create trustworthy encryption. The newest informational units, known as leaves, are gathered into branches. The Merkle root, which holds all the prior information, is then traced as a result of this. This approach was initially tested on the Bitcoin blockchain before being modified for Ethereum. Buterin claims that Verkle trees offer a "strong enhancement to Merkle proofs that allow for substantially reduced proof volumes." The so-called Verge will lower node sizes and optimize storage. In the end, <strong>The Verge</strong> will increase the scalability of Ethereum.</p><p dir="ltr">Verkle trees essentially let you store a lot of data by demonstrating a brief proof of any piece of it, which is then confirmed by someone who only has access to the tree's root. Proofs will become significantly more productive as a result of this procedure.</p><p dir="ltr">As a relatively recent concept, verkle trees are still not as well-known or utilized as other cryptographic techniques. Therefore, the Surge's handling of sharding and rollups will have an impact on how the network handles scaling and Ethereum proofs after that.</p><h3>The Purge</h3><p dir="ltr"><strong>The Purge</strong> attempts to "purge" or "reduce" unnecessary historical data. Because of the Purge, not every node is required to store every historical block indefinitely. Clients will instead stop saving history that is older than a year. Under the new proof-of-stake consensus mechanism, validators will be able to validate the blockchain with more efficiency by reducing the amount of historical data. This should reduce network traffic and enable the blockchain to perform a large number of additional transactions. Ethereum should be able to perform 100,000 transactions per second by the time this phase is complete, according to Buterin.</p><h3>The Splurge</h3><p dir="ltr">These various improvements should make it easier for the typical user to use Ethereum and increase its accessibility. Buterin has referred to the following component, <strong>the Splurge</strong>, as "the enjoyable stuff" once all of the earlier components have come together. It attempts to ensure that the network keeps operating properly and that the protocol upgrades in the preceding sections do not result in any problems. The difficult task of increasing Ethereum's scalability will be finished.</p><p dir="ltr">This last phase is still decades away, and there will undoubtedly be bumps in the road as with every technological advancement. Given that the Merge has taken far longer than anticipated, when the Splurge does occur, the Ethereum network will enter a much-deserving period of celebration.</p><iframe width="560" height="315" src="https://www.youtube.com/embed/kGjFTzRTH3Q" frameborder="0" allowfullscreen=""></iframe><p class="prosemirror-p-center"><em>Vitalik Buterin shared about Ethereum's roadmap at&nbsp;EthCC</em></p><h2>Conclusion</h2><p dir="ltr">The Merge is currently being expected by investors to be the savior for the crypto market in the downtrend season. According to Vitalik Buterin, it is very difficult to completely decentralize with the complexity of the network and the speed of development in the Crypto space. However, Vitalik also confirmed that the team of Ethereum developers are working very hard to quickly meet the expectations of the community about Ethereum upgrades at the moment. Let's wait and see how The Merge and the next phases of the Ethereum revolution will unfold!</p><div class="pr-block-special"><strong>Disclaimer:</strong><br>This article is intended for and only to be used for reference purposes only. No such information provided constitutes advice or a recommendation that any investment or trading strategy is suitable for any specific name.</div>

The Merge is getting closer and closer and the information around it is also becoming hotter than ever. So, what happens after The Merge ends? Read the article below to know more about Ethereum's upcoming plans after The Merge!