Ethereum is a smart contract platform that enables developers to build tokens and decentralized applications (dapps). ETH is the native currency for the Ethereum platform and also works as the transaction fees to miners on the Ethereum network. Ethereum is the pioneer for blockchain based smart contracts.
Beyond the benefits associated with The Merge, analysts highlight two types of risks faced by the network a network refers to all nodes in the operation of a blockchain at any given moment in time. Ethereum a decentralized open-source blockchain with smart contracts functionality. and its user community: Replay attacks and falling levels of decentralization.
- Analysts warn of certain risks to which it is exposed Ethereum con The Merge
- The first has to do with repeat attacks.
- The second is sacrificing decentralization the handover of control from a central authority to several different custodians. for operational improvements.
- The Merge will arrive in the next few days
With less and less time to go before the arrival of theThe Merge,the major upgrade for the Ethereum generates a lot of enthusiasm among users, enthusiasts and investors of the project. Blockchain. However, certain security the term securities refers to a fungible and tradable financial instrument that carries a type of monetary value. experts indicate that you should not let your guard down about what is to come, as there are certain security risks to consider now that there will be a major change change — a concept relevant to cryptocurrencies that use the UTXO model — is the number of coins sent back to a user after they use their unspent outputs to initiate a transaction. in the consensus consensus is achieved when all participants of the network agree on the order and content of the blocks in the blockchain. method.
According to a report published by the media Zycrypto.com , there are two aspects that could go wrong with the network, through which bad actors could take advantage to undermine the stability of the network ecosystem Ethereum.
1- Repetitive attacks
The first risk noted is that of so-called replay attacks. This basically implies that when a large-scale upgrade occurs, users will have the same amount of assets in both the version of Ethereum that will operate with The Merge, as well as the one in which Proof-of-Work poW is a type of consensus algorithm that rewards validators according to the amount of computational power they have expended. (PoW) mining a process where blocks are added to a blockchain, verifying transactions. It is also the process through which new bitcoin or some altcoins are created. is maintained, a situation that would motivate the beneficiaries to go to the main exchanges to derive profit by selling the duplicate assets.
Analysts warn that while this may not be a problem, some bad actors may take advantage and run certain campaigns so that the beneficiaries end up selling the assets hosted on the main network. The replay attack means that criminals could duplicate transactions to defraud users.
In this regard, the developer of Ethereum, Marius Van der Wijden, declaró queThe Mergedoes not necessarily imply risks of repeat attacks, but invites users to do nothing at all during the transition periods, in order to avoid risks of scams motivated by uncertainty.
This is because during the update there will be a critical period of an estimated 12 minutes, during which the developers of Ethereum will be on the lookout for errors due to the transition. Here most of the exchanges have already indicated that they will suspend operations with ETH until the process is successfully completed, but there are bound to be many external or clone campaigns to invite potential victims to fall for scams disguised as “potential business opportunities”.
2 – Risks to decentralization
Leaving aside the problem of replay attacks, what really worries critics of the upgrade is what might happen afterThe Merge,since migrating to Proof-of-Stake poS is a type of consensus algorithm that rewards validators according to the amount of crypto they have staked. (PoS) brings benefits in terms of energy, but it also entails risks in terms of decentralization.
Under the figure of the validators PoS, the network will be at the mercy of staking participation in a proof-of-stake (PoS) system to put your tokens in to serve as a validator to the blockchain and receive rewards. monopolies, i.e. the bulk of this work could be condensed into exchanges and private entities with large quantities of ETH ready to validate blocks in the network.
Several weeks ago, precisely in the light of the acts of censorship censorship is the act of altering, suppressing, or prohibiting speech or writing that is considered detrimental to the general public. resulting from what happened with the Tornado Cash, a person in Twitter made it clear that Coinbase is an American company that operates a cryptocurrency exchange platform. ranked third among the validators with the highest number of operational nodes in the new network. Ethereum, This made it responsible for 14.7% of the funds available in staking at that time. Ahead of it was just Binance, which accounts for 31%, and is followed by Kraken with 8.4%.
Start with the big, current one.
— eylon (@TheEylon) August 14, 2022
The calculation shows that a month ago at least 66% of the validators are under the control of institutions directly regulated regulation is when something is controlled by a specific set of rules. by theOFAC,so this does not make them independent of measures taken by governments and/or financial institutions at least in the US. Even if Coinbase argued that it would not lend itself to this kind of pressure, that such power vested in self-interested entities could put the entire ecosystem at risk if some macro aspect requires them to censor or control certain transactions on the network.
Countdown to the arrival ofThe Merge
In spite of these two risks, the fact is thatThe Mergewill become a reality in the coming days, as it is estimated to take place from September 15.
As such, the upgrade will change the consensus model to a much more environmentally friendly one, which reduces 95% of the network’s electricity consumption, while ensuring operational improvements in scalability and cost margin.
Regarding ETH, At press time, the digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currency currency is a medium of exchange that defines value. is trading at about USD $1,591 per unit, down 7.5% in the last 24 hours after the release of new inflation a general increase in prices and fall in the purchasing value of money. reports in the U.S. economy.
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Article by Angel Di Matteo / DiarioBitcoin
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