Ethereum got it wrong? Here are 3 signs to watch for while merging
The assumption that Ethereum will only move to a fully functional proof of stake (PoS) network after the merger somewhat ignores the risks and effort required to move a $193 billion market capitalization asset and 400 decentralized applications (DApps).
This is exactly why monitoring critical network conditions is essential for anyone wishing to trade the event scheduled for September 14, according to ethernodes.org. Most importantly, traders must be prepared to detect any worrisome developments in the event of errors.
Aside from the total value of $34.2 billion held in smart contracts, there is another $5.3 billion in Ether stored in the Beacon chain. The network is currently used by various tokens and oracle providers, stablecoins, layer 2 scalability solutions, synthetic assets, non-perishable objects (NFTs), decentralized finance (DeFi) applications, and cross-chain bridges.
This partly explains why the merger has been delayed so many times over the years and why it is considered the most significant upgrade in the history of the network.
For this reason, three different test networks have undergone a merger, with Goerli being the latest on August 11. Oddly enough, minor issues were introduced in all testnet applications, including Ropsten and Sepolia. For example, Ethereum developer Marius van der Wijden noted that “two different terminal blocks and a lot of untied nodes” slowed the process down a bit.
The core of any blockchain network is its blocks
It doesn’t matter what the compatibility mechanism is. All block chains are based on proposed and validated new blocks. There are fixed block parameters that must be followed for even network participants to take into account.
In the case of an Ethereum merger, the epoch is a stack of 32 blocks that must be certified within six and a half minutes. It is important to monitor the ETH2 Beacon Chain Mainnet from trusted sources such as BeaconScan by Etherscan and Ethscan ETH2 Explorer by Redot.
The red flags on this screen would be low participation in voting in eras, lack of finish after thirteen minutes (two eras) or a complete stop of the proposed blocks.
Monitoring Infura’s Ethereum 2.0 API
Infura provides the infrastructure for building decentralized applications, allowing developers to deploy their solutions without hosting their own full Ethereum node. The company is wholly owned by the Ethereum venture capital group ConsenSys, which is controlled by Joseph Lubin.
According to the Infura website, projects that rely on its infrastructure include Uniswap, Compound, Maker, Gnosis, Brave, Decentraland, and Web3 wallet provider Metamask.
Thus, monitoring the Infura API is a good starting point for evaluating the performance of Dapps. Additionally, their status page should reliably display real-time updates, considering how closely Infura is connected to the Ethereum ecosystem.
Related: ETH Merge, Co-Founder of CoinGecko Shares Its Forked Token Strategy
Cutting, are validators punished?
The Ethereum Merge consensus mechanism included penalty rules designed to prevent attacks. Any validator who intentionally misbehaves will be cut off, which means that a portion of their Ether 32 stake will be removed. The repeated slash will eventually cause the validator to be taken out of the network. Staking providers and validators have built-in protections to prevent someone from accidentally disconnecting, for example, if the connection drops.
Traders need to understand that cutting is a standard network measure, and is a precaution, so it should not be considered immediately unfavorable. A worrying environment could be cutting hundreds of validators simultaneously, which could indicate that their software is not working as it should.
There are over 410,000 active validators, so even if 20% or 30% of them eventually lose connection, the network will continue as designed. Monitoring severance is a precaution because it most likely indicates that some services, such as your hosting provider, have stopped working or some incompatibilities have arisen during the integration.
Ethereum advocates should consider monitoring external data rather than just their own node and server. There may be delays or even false warning signs, so using multiple sources of information can help one avoid misleading data from a single website or social media post.
The opinions and opinions expressed here are solely those of author and do not necessarily reflect the opinions of Cointelegraph. Every investment and trading movement involves risks. You should do your research when making a decision.