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DefinitionEthereum

The Merge

Ethereum’s upgrade that replaced proof-of-work mining with proof-of-stake validation while keeping the network’s history and user balances intact.

The Merge was a major Ethereum upgrade that joined Ethereum’s original execution layer, where transactions and smart contracts run, with the Beacon Chain, a proof-of-stake system that had been running in parallel. Before it, Ethereum used proof of work, where miners spent computing power to add blocks. After The Merge, validators stake ETH to propose and confirm blocks. The change did not create a new coin or reset the blockchain; account balances, smart contracts, NFTs, and transaction history continued on the same Ethereum network.

It matters because it changed how Ethereum is secured and how new blocks are produced. Proof of stake greatly reduced Ethereum’s energy use and shifted network participation from mining hardware to validator staking. For a user sending ETH or using a decentralized app, the experience looked mostly the same, similar to replacing an airplane’s engine mid-flight without changing passengers’ seats or destination. The Merge also set the foundation for later Ethereum scaling upgrades, but it did not by itself make transactions much cheaper or instantly faster.

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