Australian company Sigma Prime, the developer behind Ethereum’s Lighthouse client, has announced the first “merge transaction” between Ethereum 1.x and Ethereum 2.0.
According to a Sigma Prime tweet, the first “merge transaction” was committed by a Lighthouse client using only Proof-of-Stake (PoS) validators. According to the company, this is the first step towards reducing Ethereum’s energy consumption by 99.98%. The firm got this figure from calculations that compare the current PoW algorithm Eth1 with the more energy efficient PoS Eth2.
Lighthouse produced its first # Eth1 & # Eth2 merge transaction
This is an ETH tx using * only * proof-of-stake validators. A step towards a 99.98% drop in Ethereum energy consumption
Credits to @gballet, @ mkalinin2 & @Teku_ConsenSys!
Important qualifications pic.twitter.com/DW5GSk4JVo- Sigma Prime (@sigp_io) March 25, 2021
Sigma Prime claims this is an exciting achievement, but still far from the production phase as it is a tough prototype:
“First of all, you should see this as a signal that the developers of ETH1 and ETH2 are actively working together on the merger.”
Last August, the developers of the Teku Ethereum client also demonstrated a prototype capable of executing any Eth1 transaction in the Eth2 environment. The Sigma Prime transaction is one of the first steps towards Phase 1.5 in the Ethereum 2.0 roadmap, where the two versions of the network must “meet”. After the launch of phase 1.5, the Ethereum 1.0 chain will become the Ethereum 2.0 shard on PoS. At this point, the full functionality of the ETH1 chain, including the use of cryptoassets, will become available in ETH2 without compromising data integrity.
The move to PoS will eliminate the energy-intensive mining that currently powers ETH1. In response to Lighthouse’s achievement, Reddit began discussing mining and its power consumption. Citing the rise in power and graphics costs due to global chip shortages, Reddit user HighlightAccording98 stated that it is easier to profit from staking than from mining.
“If I were a miner, I would block a bunch of ETH from selling my hardware, generate income and wait for the merger.”
According to Eth2 Launchpad, Ethereum 2.0 validators are currently earning 8.2% annual revenue, and 3.6 million ETH has already been blocked for staking.
Recall that recently Ethereum developer Mikhail Kalinin published a document proposing a faster merger of the ETH1 and ETH2 blockchains and, accordingly, a faster transition to PoS.