Many users have migrated to other L1 blockchains, such as Solana, Cardano, and others, due to Ethereum’s expensive gas prices.
DeFi trader Vivek Raman stated in a Twitter conversation that Ethereum’s (ETH) anticipated Merge will not reduce network costs as many had hoped.
According to his tweet, the growing demand for block space is the source of Ethereum’s high gas prices, not the “consensus process.” The objective of the Merge, he explained, is to replace Ethereum’s proof-of-work consensus method with proof-of-stake.
He came to the conclusion that network expenses will not decrease; instead, consumers may use layer2 solutions to save money.
In the cryptocurrency community, the topic of Ethereum’s high transaction costs is overly discussed. The network’s high costs have led many users to L1 blockchains with reduced gas prices, such as Solana (SOL), Cardano (ADA), and others.
Ethereum security will improve
Vivek refuted the claim that Ethereum’s proof-of-stake network would not be safe. According to him, Ethereum will be more secure after the unification since it will be more difficult to attack mathematically.
He used an article by Vitalik Buterin to support his argument. Proof-of-stake networks offer greater blockchain security methods than proof-of-work networks, according to Buterin.
After the Merge, Ethereum will become less energy-intensive. This is one of the most compelling justifications for the switch to the proof-of-stake consensus method. Consequently to Vivek, The Ethereum blockchain will be more resilient than Bitcoin’s blockchain.
After the Merge, Vivek anticipates the ETH staking yield to grow by at least 50 percent. The current staking return for ETH is 4.2% and would increase to nearly 6% if validators also received transaction fees.
As the primary collateral asset in DeFi, Ethereum will become a digital bond that complements the use cases of Bitcoin (BTC) as a store of value and collateral.
In the meanwhile, he thinks that Ethereum will continue to progress, and that post-Merge features like as data sharding, state management, staking withdrawals, etc. may be anticipated.
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