Experts Warn About The Biggest Problem With Ethereum After The Merge

Nidhish Shanker
August 22, 2022 Updated August 25, 2022
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Ethereum

Justin Bons, the founder and CIO of Cyber Capital, reveals the biggest threat to Ethereum after the merge. He believes that investors, traders, and developers are standing at the crossroads of Ethereum. 

He reveals a number of external factors that could affect Ethereum, including a potential sanction from the US government. The US Treasury’s Office of Foreign Asset Control recently sanctioned a virtual currency mixer, Tornado cash. There was speculation as to whether the OFAC could move against Ethereum as well.

However, according to Bons, the biggest threat to Ethereum come from within in the form of social slashing and unclear governance. He believes that Ethereum could be headed for multiple forks and a disaster.

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Bons Spells Out The Danger

According to Justin Bons, Ethereum can fall into the trap of social slashing. He believes that social slashing can create similar censorship issues that it intended to fight. The merge changes Ethereum’s consensus mechanism from Proof-of-work to Proof-of-stake. 

Proof-of-stake depends upon validators to verify transactions and them to the blockchain. The validators stake a specific amount of native token, which is slashed in case of dishonest behavior. For Ethereum, the amount staked is 32 ETH.

Justin believes that Ethereum’s PoS chain is censorship resistant. However, the community deciding to slash the staked Ethereum can be a big issue. He believes that slashing should be the nuclear option, only a measure of last resort. Otherwise, a lot of innocent people’s property rights could be abridged.

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Progress On Ethereum Merge

The Ethereum 2.0 client Teku has released an important update that allows every mainnet user to prepare for the merge. A recent report also revealed that the Ethereum merge is 96% complete

Ethereum developers also confirmed that the final date for the merge is September 15. However, the exact date for the merge rate will depend upon the hash rate. Ethereum needs to maintain the hash rate of at least 872.2 TH/s.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Nidhish is a technology enthusiast, whose aim is to find elegant technical solutions to solve some of society's biggest issues. He is a firm believer of decentralization and wants to work on the mainstream adoption of Blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.