Ethereum: Will Existing Transactions Be Split Across Two Chains?
In August 2021, Ethereum successfully completed its
hard fork, dubbed “The Merge”, which aimed to transition from a proof-of-work (PoW) consensus mechanism to a *proof-of-stake (PoS) *one. This shift was made necessary by the growing demand for scalability and usability on the network.
Following The Merge, there were concerns that existing transactions would be split across two chains: Ethereum (the original chain) and Ethereum Classic (EIP-1559). However, as we delve into the details of how this transition will work, it’s essential to understand why existing transactions won’t necessarily go onto both chains simultaneously.
Why Existing Transactions Won’t Split Across Two Chains Immediately
There are several reasons why the split won’t happen right away:
- Transaction Settlement: Ethereum has a built-in mechanism for settling transactions across chains, ensuring that coins move seamlessly between them.
- Inter-Chain Communication Protocol (ICP): The ICP is designed to facilitate communication and data exchange between different blockchain networks, including Ethereum and EIP-1559.
- Ethereum’s Smart Contract System: Ethereum’s smart contract architecture allows for the creation of self-sustaining ecosystems, enabling the transfer of funds without needing a direct link to another chain.
The New Transaction Split: 1 Chain or 2?
When new transactions are created, they will split into two chains:
- Ethereum (the original chain): This is where coins that were already transferred to Ethereum before The Merge will remain.
- Ethereum Classic (EIP-1559): New coins created through the transition will be deposited onto EIP-1559.
Why Not Every New Transaction Goes Onto Both Chains?
There are a few scenarios in which new transactions might not go onto both chains:
- New Coins
: If a user wants to create new coins, they’ll need to deposit them into either Ethereum or EIP-1559. However, this process will take time.
- Transaction Settlement: While the ICP ensures that data can be exchanged between chains, it’s not guaranteed that all transactions will settle simultaneously.
In summary, existing transactions won’t split across two chains immediately due to various factors, including transaction settlement mechanisms, inter-chain communication protocols, and Ethereum’s smart contract system. New coins created through The Merge will primarily deposit into EIP-1559, while the original chain (Ethereum) will remain unchanged.
Stay informed about Ethereum’s evolution with ongoing updates from the team at Coinbase Research or other reliable sources.
