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Cryptocurrency alternate FTX has announced that it shall briefly freeze buying and selling Ether (ETH) on a number of blockchains as the Ethereum Merge nears.

The halt will final till The Merge is accomplished as a approach of taking additional precautionary measures to safeguard traders’ funds in the course of the Ethereum improve.

After the Merge, Ethereum blockchain will regularly change from a Proof-of-Work (PoW) consensus mechanism to a Proof-of-Stake (PoS) consensus mechanism.

FTX mentioned:

“As the ETH merge approaches, FTX will temporarily disable blockchain transfers of secondary chains for ETH to make sure that settlement is clean; the main chain ETH will stay active for longer.”

FTX’s transfer comes regardless of Ethereum builders’ assurance that the Terminal Total Difficulty (TTD) is what’s going to permit the Merge to change to PoS with no downtime. TTD will allow the transition primarily based on the overall mining energy that may go into producing the brand new chain.

The Merge is not going to decrease gasoline costs

Depsite switching from PoW, which is taken into account extra pricey, to PoS, which is taken into account to be cheaper, the Ethereum Foundation has acknowledged that the Merge is not going to consequence to a discount of gasoline costs.

An announcement from Ethereum Foundation reads:

“Gas fees are a product of network demand relative to the network’s capacity. The Merge deprecates the use of Proof-of-Work, transitioning to Proof-of-Stake for consensus, but does not significantly change any parameters that directly influence network capacity or throughout.”