Paper Key : IRJ************832
Author: Ekta Aneet Pandey
Date Published: 19 Oct 2023
Abstract
On 15 September 2022 Ethereums transition from Proof of Work(Pow) to Proof of Stake(Pos) consensus mechanism, knowns as the Ethereum Merge(Ethereum 2.0)This pivotal shift has reverberated through the blockchain space , raising critical questions about the broader implications for network performance, sustainability, and industry standards. Ethereum originally operated using Proof of Work(PoW)consensus mechanism .To participate in Ethereum network, users send transactions from their wallets to execute functions or transfer Ether(ETH), the native cryptocurrency. Miners , who specialized nodes in the network, validate these transactions. Miner compete to validate and package these transactions into blocks. They use computational powers to solve complex cryptographic puzzles, which as called as Proof of Work(PoW).The process of mining is highly competitive as multiple miners are racing to find the solution to the puzzle . This competition is what ensure the security and integrity of the networks. Miners are rewarded with newly created ether(block reward) and transaction fees for their efforts. These rewards incentivize miners to continue validating transactions and securing the network.