Ethereum’s final testnet transition to proof-of-stake scheduled for early August

Ethereum is one step away from transitioning to proof-of-stake (PoS). That final step will take place in a few days.

The implementation of the Goerli/Prater testnet, the final test to be completed before the highly anticipated transition of Ethereum to PoS, will occur next week, according to an announcement from the Ethereum Foundation.

Testnets like Goerli are rehearsals for the merge, preparing for the event by moving the entire Ethereum mainnet into a testnet environment. The Goerli testnet will be the third and final of its kind. Earlier this month, the Sepolia testnet passed without issues, and even earlier in June, the Ropsten testnet was successfully tested.

Between August 6 and 12, the Goerli testnet is expected to merge with Prater, the associated beacon chain. The main beacon chain is the proof-of-stake version of Ethereum that has been running in parallel with the current proof-of-work (PoW) Ethereum network since December 2020.

The merge will shift all Ethereum network activities from the current PoW blockchain to the beacon chain. If the Goerli testnet runs smoothly, Ethereum developers hope to execute the merge around September 19.

In the current proof-of-work model, Ethereum is created through an energy-intensive practice known as ‘mining’, where so-called miners direct vast amounts of computing power to solve complex puzzles, hoping to mine Ethereum.

The merge will end the practice of mining Ethereum and replace it with a process where owners of at least 32 Ethers can stake, effectively replacing mining. According to the Ethereum Foundation, the proof-of-stake model will make the Ethereum blockchain 99 percent more environmentally friendly.

Since the staking practice will likely lock up a large portion of Ethereum already in circulation, some believe the merge will have a deflationary effect on the cryptocurrency, keeping supply lower while demand remains constant or increases.

It is likely for this reason that Ethereum has surged by 45 percent in the last month, compared to Bitcoin’s 14.6 percent. Yesterday, Ethereum reached a price of over $1,700, according to CoinMarketCap, a level not seen since early June.