A few days ago, Ethereum announced that the Bellatrix update had been scheduled for the morning of September 6. Bellatrix is the first of two critical updates on the way to The Merge, the second being the Paris upgrade, which will eventually switch the network over to the proof-of-stake (PoS) consensus mechanism.
In simple words, Ethereum’s transition to PoS, which is perhaps the most anticipated event in the cryptosphere, is just around the corner. While the much-anticipated transition gives Ethereum users a lot to celebrate, it could also leave some individuals vulnerable to hacks, attacks, and penalties. With this in mind, the following article will unpack some tips to help you prepare for The Merge.
Users are not required to do anything during the transition
As per an official Ethereum blog post, anyone holding ETH on an exchange or in a self-custodial wallet will NOT need to do anything to prepare for The Merge. Most leading crypto exchanges, such as Binance and Coinbase, will ensure user funds remain safe in their wallets during the upgrade. If an application, exchange, or wallet offers additional instructions, ensure these instructions come from verified sources.
Also, do not panic if you find your ETH frozen for a few hours before and after the merge. This is because most leading exchanges will implement a temporary pause on ETH borrowing, deposits, and withdrawals.
Things to beware of in case of a hard fork
There are several rumours of a potential hard fork after the Ethereum merge. This is because the transition to PoS puts miners out of a revenue stream and renders their computing equipment useless. As such, several powerful mining entities have suggested continuing the proof-of-work network post the transition to PoS, resulting in a fork in the blockchain.
If this does happen, it will result in the creation of PoWETH. While the possibilities of a hard fork are slim, they cannot be ruled out. If it does occur, scammers and hackers will take it as an opportunity to dupe unsuspecting investors and traders.
Bad actors may ask ETH holders to purchase PoWETH or transfer funds to a random wallet address to “complete the upgrade” and disappear after receiving the funds. Most platforms will use snapshots of user holdings to allocate an equal amount of PoWETH in case of a hard fork. They will also offer official instructions, if any, in case an unofficial fork does take place.
Guidelines for nodes
After the merge, nodes will have to run an execution layer in addition to their consensus layer clients. Ethereum has chosen this multilayer setup for safety reasons. Failure to abide by the new guidelines could result in higher penalties.
Ethereum’s blog post announcing the Bellatrix upgrade has listed the client releases that will support The Merge on the Ethereum mainnet. The post also provides additional resources on why the multilayer setup was chosen and a guide for switching clients.
