The merge involves joining the existing Ethereum execution layer and the new proof of stake consensus layer via its Beacon Chain. Effectively, the blockchain abandons its Proof of Work mechanism to Proof of Stake. The goal of the merge is to eradicate the energy-intensive mining of proof of work. This results in a significantly scalable, sustainable, and secure blockchain.
Crypto.com weighs in support for the Ethereum Merge
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Crypto.com recently unveiled that the crypto.com app and exchange will support the Ethereum merge slotted to occur in September this year. Crypto.com initially revealed its support through its website. It declared that it will temporarily suspend deposits of ETH and ERC 20 tokens on the Ethereum mainnet.
It insisted that this will apply to the Crypto.com App and Crypto.com exchange. This measure was reached upon ascertaining the safety of users’ funds during the upgrade and after the upgrade as well. However, users can continue trading ETH ERC tokens. These will not be affected. In a press release, Crypto Lists learnt that Crypto.com is to monitor the situation after the merge before resuming deposits and withdrawals of ETH and ERC 20 tokens. The crypto site will facilitate these deposits and withdrawals once the merge stabilises.
Possibility of forked tokens from the Merge
This temporary suspension may result in new forked tokens. A fork occurs when a community issues a change to the blockchain’s protocol or introduces a new set of rules. A new project is created and the two projects diverge. The community running the project does not agree on the changes to the protocol of the network leading to the creation of a new project. The introduction of ETC forked from ETH is a famous fork on the Ethereum blockchain.
When any new forked token forms due to the temporary suspension, Crypto.com will analyse each one as it does with any new token. It will also review the support for the distribution and withdrawal of these new forked tokens.
Crypto.com’s message to its users ahead of the merge
Additionally, Crypto Lists Ltd acquired some notes from Crypto.com to its users regarding the upcoming Ethereum merge. They clarified that their users do not require to take any action to secure their funds or wallet before the Ethereum Merge. It assures its users will still access their funds and they do not require to do anything on their part. Furthermore, the Merge of Ethereum to proof of stake will not alter the history of Ethereum.
Its entire history since genesis remains intact and unaltered after the transition. Crypto.com also issues a caution to its users in the days leading to and after the merge. It encourages its users to be on high alert to the vulnerability that this transition is to scams. Scammers plan to take advantage of users during the transition. The crypto site particularly emphasises that there will be no ETH2 tokens that users require to have a smooth transition during the merge. Crypto.com stresses to Crypto.com users that there is nothing more they need to do for their funds to remain safe.
Other Exchanges supporting the Ethereum Merge
One of the leading cryptocurrency exchanges has weighed in on the Ethereum merge stating it will fully support the Ethereum Proof of Stake and consider Proof of Work forks on a case-by-case basis. Binance will evaluate supporting the new tokens. The newly forked tokens will undergo the exchange’s vetting process if they are to be listed on Binance.
Major stablecoins including USDC and USDT also voiced their support for the Proof of Stake consensus for Ethereum. Various players in the industry are strongly opposing the Ethereum Proof of Work. These include ChainLink, Aave, and Ethereum Co-founder Vitalik Buterin.
Other exchanges have a different stance from Binance by allowing users to trade separate ETH Proof of Stake tokens and Proof of Work tokens. Poloniex has already facilitated this trade prompting other exchanges such as MEXC and Huobi to consider the following route.
Ethereum Merge Increases Use Cases
Crypto.com’s support for the Ethereum merge is backed up by the efficiencies and scalability solutions that make Ethereum more attractive for further investments. The tentative launch date for the Ethereum merge is set for September 15th this year.