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Ethereum

ETH Merge date is anticipated for 15th September 2022

The network is transitioning from a proof-of-work (PoW) to proof-of-stake (PoS) consensus mechanism

The Merge is expected to reduce Ethereum's energy consumption by ~99.95%

Customers do not need to take any action to participate in the Merge

BTC Markets will monitor activity at the time of the Merge and evaluate any possible forks

"The Ethereum network move from proof-of-work to proof-of-stake consensus mechanism has been compared to changing a plane's engine mid-flight. It is hard to work in technology and not be thrilled by this audacious undertaking, so near completion"

After years of planning and development, the Ethereum Mainnet is anticipated to migrate from its existing PoW consensus mechanism to its new PoS validation structure on 15th September 2022. The Merge, announced by 

 will improve the scalability and sustainability of the Ethereum network. In this article, we will explore some of the basic concepts of Ethereum, the significance of this Merge, and the impact it may have on you as a holder of ETH.

Ethereum is a programmable blockchain, which is a software platform that can be re-coded to build new uses for the technology. The network’s digital asset, Ether (ETH), is the second largest by market capitalisation.

Ethereum has a feature called smart contracts. A smart contract automatically executes the terms of an agreed contract, without the need for any third party. It is useful for many industries, including e-commerce, e-gaming, and financial services.

, the “Mainnet is the primary public Ethereum (ETH) production blockchain, where actual-value transactions occur on the distributed ledger. When people and exchanges discuss ETH prices, they're talking about Mainnet ETH.”

The Mainnet currently operates on a PoW consensus mechanism that enables the Ethereum network to agree on things like the order of transactions or account balances. This avoids the possibility of double spending, and ensures that the Ethereum blockchain is very secure.

PoW relates to the underlying process that miners undertake to add valid blocks to the blockchain. As more blocks are added and the blockchain gets longer, the work gets harder. This means miners need to consume larger amounts of computing power to validate new blocks, which in turn is very energy intensive and not very sustainable.

The Beacon Chain is Ethereum's new PoS blockchain, and has been described by 

 as the “spine that supports the entire Ethereum 2.0 system”. Like Mainnet, the Beacon Chain is the consensus mechanism of the network, responsible for creating new blocks, validating them, and rewarding validators with ETH for keeping the network secure.

It was deployed in December 2020 and has been running parallel to Ethereum’s Mainnet, confirming on-chain data, but through the PoS consensus mechanism. Running the chain separately, allowing for the identification of bugs or development issues prior to the Merge.

Being a PoS network, the Beacon Chain uses less energy than the PoW protocol (~99.95% less), as transactions and blocks can be approved quicker without the need to solve complex equations. Blocks on a PoS chain are said to be ‘forged’ as opposed to ‘mined’.

The Beacon Chain has been in operation for 19 months, testing its integrations through the various networks that Ethereum has deployed. Most recently they completed a Merge on the Goreli testnet on August 12th, 2022 - the largest of Ethereum’s test networks. This signalled the final hurdle before a Mainnet migration can occur, which is anticipated to take place on the 15th of September 2022.

Around 15th September 2022 (at TTD 58750000000000000000000), data held on the Mainnet (the existing PoW consensus protocol on Ethereum) will be merged with the Beacon Chain, and the new PoS consensus will become the engine for block production on Ethereum. After the Merge has successfully taken place, mining will no longer be the means of producing valid blocks on the network, and all future block validation will be processed through PoS.

No history is lost from the blockchain. As Mainnet gets merged with the Beacon Chain, so too will the entire transactional history of Ethereum.

The move to a PoS consensus mechanism will provide the Ethereum network with heightened security, reduce energy consumption (by 99.95%* due to less computational power) and provide greater scalability opportunities not currently available under PoW e.g. sharding; a feature that makes data transfers and accessibility faster and more efficient for layer 2 rollups. Caroline Bowler stated, "The Merge is said to be the first of five major improvements to the Ethereum network. Vitalik Buterin is quoted as saying this will move the network from 40% to 55% completed".

PoS also allows ETH holders to earn crypto rewards through staking. Ethereum staking rewards are earned by setting up an individual node or delegating your ETH to a pool. By participating in staking, you assist in the validation of the Ethereum blockchain, further securing the network. The Ethereum network offers ETH as a reward for doing this.

Setting up your own pool requires 32 ETH, but if that’s not feasible, you can join a staking pool. More information on staking can be found on 

.

Unfortunately, due to the Australian regulatory requirement to hold a managed investment scheme license, BTC Markets is not currently able to support pooled staking for any asset. We will continue to monitor the regulatory landscape while we investigate alternative earning opportunities for our customers.

Will the Merge Impact Ethereum Token Holders? 

As a holder of Ethereum, there is nothing you need to do with your funds or wallet ahead of the Merge. There is no upgrade to an “ETH2” token, and any funds held before the Merge will still be accessible after it is complete.

It’s important to remain vigilant as scammers may attempt to target users unaware of how the Merge will be executed. Do not engage with notifications asking you to redeem, swap, or send ETH for “ETH2”, or any offers from others to act on your behalf to prepare you for the Merge.

There is some community speculation of a new Ethereum token due to a hard (contentious) fork following the Merge. BTC Markets will monitor activity at the time of the Merge and if a hard fork occurs, evaluate the impact on the network. To manage network risk, BTC Markets will suspend ETH and all ERC_20 token deposits and withdrawals a couple of hours before the Merge. This freeze will remain in place until the Merge is complete and the network is stable. We will keep our customers informed via our social media channels (

) during the event.

A small number of exchanges have listed ETHS and ETHW tokens as pre-emptive tokens in the event a hard fork occurs, and two chains emerge as viable. However, these pre-emptive tokens are not endorsed by the Ethereum Foundation.

Please always check reputable sources, such as Ethereum.org, for official releases and guidance.

What does the Industry Expect to Happen to Ethereum Post-Merge? 

, Ethereum could become worthy of institutional investments and adoption post-Merge. The report suggests that crypto could go the way of futures and exchange-traded funds as companies look to diversify their holdings into the crypto landscape.

BTC Markets is excited about what the upcoming Merge will do for the Ethereum blockchain and the impact it will have on the broader crypto ecosystem. 

If you have any further questions, please contact our 

The Ethereum Merge is Coming

 24/10/2022, BTC Markets has maintained its status as a vetted exchange by Digital Asset Research (DAR), for the second quarter in a row. We are currently the only Australian Crypto Exchange to be recognised for this. 


DAR evaluates over 450 exchanges globally to measure institutional investor standards for codebase construction and maintenance, community, security, liquidity, regulatory compliance, and price accuracy.  The standards we apply ensure that we have the correct asset price such as the current Bitcoin price accurate for institutional investor requirements.

Click through to read their 

 process.  

The list contains 22 vetted exchanges which meet these criteria and BTC Markets was included among global leaders within the crypto industry, displaying our commitment to creating 

"Strong risk management practices are even more critical in turbulent markets and our Exchange Vetting process helps firms identify safe venues as they invest in digital assets or build investment products,” said Doug Schwenk, DAR’s CEO.

BTC Markets recognised as Vetted Exchange 

At BTC Markets, partnering with our clients to protect and grow their asset base is our primary focus. By providing a state-of-the-art trading platform and adhering to Australian government regulations, it is no surprise that we have been recognised as the only Australian cryptocurrency company to be included in the “July 2022 List of Vetted Exchanges” from 

 (DAR), a leading provider of crypto asset data and analysis. DAR provides institutional grade, unbiased research, analysis, and insights on token projects, technologies, and other topics. Data can often be manipulated in the crypto space, and this results in inaccuracies in price quotations. DAR have developed a model that produces an authoritative price for digital assets (

 to read more about DAR’s rigorous vetting process).

DAR evaluates over 450 exchanges globally to measure institutional investor standards for: codebase construction and maintenance, community, security, liquidity, regulatory compliance, and price accuracy. The list identified 22 exchanges across the globe, which passed their stringent vetting process, with BTC Markets included amongst world leaders within the crypto industry. This reaffirms our commitment to deliver transparent and trustworthy trading of crypto assets such as Bitcoin, Ethereum, XRP and Litecoin, to name a few. "Strong risk management practices are even more critical in turbulent markets and our exchange vetting process helps firms identify safe venues as they invest in digital assets or build investment products,” said Doug Schwenk, DAR’s CEO.

As Australia’s premium cryptocurrency exchange, our market leading technology ensures that our retail and institutional clients have access to real-time and accurate price quotes. Strengthened by our work to organically secure an 

 via our sister company, BTCM Payments, a first for any crypto exchange in Australia (

 to read more about our AFSL certification), plus our professional indemnity insurance, 

compliance, the DAR announcement further solidifies our commitment to be the only platform of choice for the Australian market.

Caroline Bowler, BTC Markets CEO said “We are constantly improving the performance and security of our trading platform to provide value to our clients whilst maintaining the integrity, safety, and security of our exchange. We avoid listings that could present a potential risk to our clients, and they must pass through a rigorous due diligence test to ensure the project has longevity and will not put our clients' funds or assets at risk. We are excited to be added to the list of vetted exchanges from Digital Asset Research (DAR) for July 2022.”

BTC Markets Becomes Australia's First and Only Vetted Crypto Exchange

BTC Markets have partnered with a number of the very best tax professionals out there, and have negotiated some amazing discounts for BTC Markets customers.

We are pleased to advised that CryptoTaxCalculator and Koinly have confirmed extension of their 30% discount to BTC Markets customers until 31st October 2022.

CoinLedger continues to offer their 30% discount until 31st December 2022, and Navexa and Vault Accounting continue to offer 10% discount to customers on an on-going basis.

 when you sign-up using the BTC Markets discount code before 31st October 2022.

CryptoTaxCalculator Discount Code: BTCM30

 tax report by using the BTC Markets discount code before 31st October 2022 (existing and new customers).*

*This offer cannot to be used in conjunction with any other Koinly offer, is one use per customer, and excludes Koinly CPA and B2B customers.

 by using the BTC Markets discount link when you start automating your crypto tax reporting with 

 quote by advising that you're a BTC Markets customer.

 when you sign-up using the BTC Markets discount code: BTCMKT30 before 31st December 2022.

If you need assistance on how to integrate with these tools, please see our 

CryptoTaxCalculator and Koinly Extend Tax Offer

Quick order buttons are now available in the latest version of the mobile app. Download it now from the 

If you love using the app, please don't forget to give us a 5* rating via the app stores.

- automatically populates the volume and price field (if applicable) using your total available balance and the price of the top ask (sell) order in the order book.

 - automatically populates the volume and price field (if applicable) using your total available balance and the price of the top bid (buy) order in the order book.

 - automatically populates the price field based on the price of the top ask (sell) order in the order book (not available for market orders, as price is already based on best market price).

- automatically populates the price field based on the price of the top bid (buy) order in the order book (not available for market orders, as the price is market price).

The quick order buttons are available via the Buy/Sell navigation tab. 

 Users must be logged into their account to access this feature.

Other updated included in this latest release:

Improved error logging and minor bug fixes

User watch list (favourite markets) retention

If you have any issues, feedback or suggestions for our mobile app, please let us know via our 

BTC Markets Blog

Scheduled Maintenance Downtime: Fri 2nd Sept 2022

The Ethereum Merge is Coming

BTC Markets recognised as Vetted Exchange

BTC Markets Becomes Australia's First and Only Vetted Crypto Exchange

CryptoTaxCalculator and Koinly Extend Tax Offer

New Mobile App Feature: Quick Order Buttons

Get BTC Markets content delivered

.css-10i63lj:hover{-webkit-text-decoration:underline;text-decoration:underline;}.css-187z2gv:hover{-webkit-text-decoration:underline;text-decoration:underline;}Scheduled Maintenance Downtime: Fri 2nd Sept 2022

The Ethereum Merge is Coming

BTC Markets recognised as Vetted Exchange

BTC Markets Becomes Australia's First and Only Vetted Crypto Exchange

CryptoTaxCalculator and Koinly Extend Tax Offer

New Mobile App Feature: Quick Order Buttons

Get BTC Markets content delivered

Scheduled Maintenance Downtime: Fri 2nd Sept 2022