The crypto world is anticipating one of the most important events in the community in recent years. On September 6, a migration process known as “The fusion” (“The Fusion”) on the ethereum network, created by Vitalik Buterin. Its cryptocurrency, the second among those with the largest market capitalization globally, will go from a “Proof of Work” protocol to Proof of Stake (proof of participation). These are two different algorithms to keep the “accounting books” of cryptocurrencies, and their creation depends on these, from the mining or generation of nodes.
Given that due to the unknown consequences of the migration, which has been in the works for years, a new cryptocurrency could be created in the process, BinanceThe largest exchange platform in the world, took some measures to “trade risks that price volatility can generate and maintain the safety of user funds.” Other platforms could follow suit.
Binance will suspend deposits and withdrawals of tokens ETH and ERC-20 approximately on September 6, 2022 at 2:00 p.m. (Argentine time) for the update of the Bellatrix consensus layer and on September 15, 2022 at 3:00 a.m. for the layer update of execution Paris”, they reported. They warned users to allow enough time for their token transfers to be processed before the suspension.
It is considered that they could two scenarios from “The Fusion”. For one thing, a new token might not be created. In that case, Binance will then reopen ETH and ERC-20 token deposits and withdrawals as soon as possible. On the other hand, the chain could be split into two opposing chains and a new token is created. Platform users will see the emerging token credited in a 1:1 ratio according to the snapshot of ETH balances before the Paris execution layer update.
“For the purpose of protect Binance users, All tokens that come out of the fork will go through a strict review process to be listed, just like Binance does with any other coin or token. Due to internal policy, Binance does not guarantee listings,” they reported.
trading in spot, margin and futures they will not be affected, although great price volatility is expected. Binance will suspend ETH cross and isolated margin lending requests from September 14, 2022 at 3:00 until approximately September 16, 2022 at 3:00.
Liquidations will continue to be enabled under extreme conditions of price volatility. Binance reserved the right to update the suspension time for ETH cross and isolated margin lending and to adjust ETH lending interest rates, with or without notice. In addition, users with obligations in ETH must return the token that arises from the fork in the case of scenario B.
Work testthe algorithm currently used by bitcoin and from which ethereum will migrate has some disadvantages, such as the consumption of electrical energy. Hereinafter, the tokens will not be mined, but there will be validators in charge of registering operations in the blockchain, a more decentralized system.