One of many foremost considerations relating to the merger is centralization. One other potential difficulty is the chance of fraud as most people will not be conscious of how the merge works.
A elementary flaw of the merger is that it's prone to enhance the focus of energy throughout the community. The extra helpful a staker's place is, the extra rewards they'll obtain for validating blocks. This might result in a state of affairs the place a small variety of rich people or teams management the vast majority of the share and have a disproportionate affect on the community.
5 main organizations management 64% of the community's shares. Within the occasion of a disputed fork, these organizations may collude to determine which chain to help, probably censoring transactions or double-spending funds. Critics are already debating whether or not the merger is a "get richer" scheme that can consolidate the ability of present curiosity teams.
As staking can be required to earn curiosity on one's ETH holdings, those that can not afford staking could also be pressured out of the market. This might result in elevated centralization as solely these with massive quantities of cash may take part in staking.
It is also not unusual for scammers to make the most of massive transitions like The Merge and faux customers must do one thing (normally involving giving up tokens) to improve. Pockets upgrades are additionally a possible supply of fraud as customers might be tricked into downloading malicious software program masquerading as an official replace.
Final however not least, miners who've been mining on Ethereum’s mainnet for years would possibly nonetheless determine to proceed on Ethereum’s legacy chain. In spite of everything, many of those miners have probably borne big electrical energy and {hardware} prices and will really feel they'll achieve extra by sticking with tried and true mainnet.
This might trigger a break up in the neighborhood as there are two competing variations of Ethereum working on the similar time. Whereas this state of affairs is unlikely, it's nonetheless a chance that traders ought to concentrate on.
