The Ethereum Merge — EQIFi’s approach

  • EQIFi fully supports Ethereum’s Proof of Stake upgrade;
  • During the Merge, EQIFi will suspend for 48–72 hours new ETH and ERC-20 token transactions as a precaution and to guarantee the security of money;
  • Binance Smart Chain blockchain may also suffer from operational suspension during the Merge;
  • Your assets will remain secure, as always. Our users are not required to take any action.

Why is Ethereum swapping from PoW to PoS?

PoW requires miners to solve complex cryptographic functions, a process famous for being hardware and energy-intensive. On the other hand, PoS requires validators to hold and deploy ETH tokens to secure the network. Ethereum’s transition to proof of stake will bring numerous benefits, including improved efficiency, scalability, and security, as well as reduced centralization.

Increased energy efficiency

By removing the requirement for specialized hardware and decreasing the entry barriers for validators, the switch to a PoS consensus process is anticipated to cut network energy usage by 99.95% while also enhancing network decentralization and security.

Less dependency on performant hardware

Currently, Ethereum’s proof of work algorithm heavily relies on graphics cards with high output. In addition to being expensive to replace, reliance on them results in unforeseen supply chain dynamics dependencies. On the other hand, following The Merge, anyone with a regular laptop may take part in safeguarding the network, making the necessary gear far more accessible.

Decreased centralization risk

Anyone may become a staker without the need for specialized technology, therefore the the more stakers the chain has, the more durable it becomes. Thus, scaling becomes a minor factor due to lower power consumption and simpler hardware needs.

More robust against attacks

Economic sanctions for misconduct in the form of “slashing” make it considerably more expensive for bad actors to undertake assaults compared to proof of work. Attackers can be removed from the staker pool, and can only be added back after a few weeks.

New scalability possibilities

With the foundation for sharding in place, it will enable a more coordinated environment that opens up new opportunities for scaling.

How will it affect you as an EQIFi user?

EQIFi has taken the following steps to ensure the safety of users’ funds during the Merge and a potential hard fork:

Deposits & Withdrawals

EQIFi will take a similar approach to other crypto exchange platforms. We will suspend deposits and withdrawals for ETH and ERC-20 tokens for 48–72 hours while the Merge takes place.

Regarding the Merge

If no new coin is formed, EQIFi will promptly reopen ETH and ERC-20 token deposits and withdrawals. In-app notifications will keep you updated in the event of any modifications you need to be aware of.

The EQIFi Team

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EQIFi

EQIFi

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EQIFI democratizes financial products previously only available to the privileged few.