Ethereum inches closer to merging with Sepolia Testnet launch

There is one more test network ahead of the launch on Ethereum’s main network.

Ethereum completes Sepolia Testnet

The main event Ethereum fans have been waiting for for several years may finally be on the horizon.

The best smart contract blockchain completed its Sepolia test network for “the Merge” on Wednesday, bringing the network one step closer to the long-awaited transition to Proof-of-Stake.

Seoplia is Ethereum’s second public Merge test network, following a successful distribution on Ropsten last month. Next up, the update is set to launch on the Goerli test network, before going to the Ethereum mainnet. Although the delivery date for the merger on the main network has not yet been completed, the Goerli launch is expected in the coming weeks.

The merger refers to the docking of Ethereum’s Proof-of-Work execution layer and its Proof-of-Stake consensus layer, also known as Beacon Chain. In each of the test networks, the two teams have joined forces as part of a move to replace Ethereum’s Proof-of-Work consensus mechanism with Proof-of-Stake. When the main network is launched, Ethereum will no longer be dependent on miners and instead use validators who have committed ETH to reach consensus. Operating an independent node requires unlocking 32 ETHs worth around $ 35,000 at current rates, although venture projects such as Lido and RocketPool have brought pooling services to the market for those with less capital to distribute.

All Eyes on the Merge

The merger is a highly anticipated event for Ethereum, as it is expected to reduce ETH emissions while improving the network’s energy efficiency by over 99%. It will also facilitate the addition of shard chains, the next phase in Ethereum’s scaling ambitions along with the introduction of Layer 2 solutions such as ZK-Rollups.

Ethereum co-founder Vitalik Buterin has been discussing the benefits of Proof-of-Stake since 2014; he miscalculated the blockchain’s probable release date for the update by several years. Although the merger has been subject to several delays, the Sepolia launch moves the network closer to the target date for a distribution of a mainnet in 2022.

While the promise of the upcoming merger served as one of the dominant narratives behind Ethereum during and in the fallout from the bull run in 2021, it has done little to stop ETH’s sad price action in the midst of a month-long market-wide decline. Since it peaked at $ 4,800 in November 2021, the second cryptocurrency has lost 76.7% of its value. It is currently trading at around $ 1,100, giving Ethereum’s market value of around $ 136.8 billion.

Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies.