The Merge (Part III) | DeFi Download

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Dear Bankless Nation 🏴,

Two weeks after the Merge, it finally feels like we can take a breath and plan for the future. As we discussed in the last issue, the transition of the Ethereum network from proof-of-work to proof-of-stake enables Ethereum to finally solve the Scalability Trilemma and create a blockchain that is secure, scalable, and decentralized.

Ethereum has always been decentralized and secure. In fact, post Merge, Ethereum is about 30 times more decentralized that Bitcoin. But the one place where Ethereum has always struggled is scalability. During the bull run, the network was slow and expensive, sometimes costing 100 USD equivalent for a simple transaction.

This usability fail is why so much of the focus this past year has been on Layer 2 and side chain scaling solutions. But with Ethereum now primed to execute on its roadmap, scaling is back in the limelight, but this time the scaling is focused at the network level.

The Ethereum Roadmap is full of funny names: the Surge, the Verge, the Purge, and the Splurge. The ‘U-rges’, as we lovingly call them, are the next evolutionary phases of Ethereum. The Surge focuses on secure scaling; the Verge on making it easier to run nodes; the Purge on cleaning out historical data; and the Splurge, as the name implies, is a final package of wonderful surprises, including privacy integration.

In this issue of the DeFi Download, we go in-depth on the U-rges, including proto-danksharding. We’ll also discuss ‘wen ETH withdrawal’, the importance self custody, the mechanics of social slashing, Ethereum’s censorship resistance, and conclude with a roundup of tweets, DeFi news, and ETH staking tactics.

This is our final issue on the Merge, and we’ll be moving on to Maximum Extractable Value next. If you think the Merge and Ethereum’s roadmap is complex, just wait until we get to MEV. See you soon friends!!

Contributors: BanklessDAO Writers Guild (Austin Foss, Chameleon, Hiro Kennelly, siddhearta, Teeleroo, theconfusedcoin, Jake and Stake)

From ‘Castle Ethereum,’ by Perchy

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