Ethereum 'merger' looms as Kiln testnet launches

The much-anticipated "merge" on the ethereum network is one step closer to becoming a reality after the launch of the final public testnet, Kiln.

On March 14, the Ethereum Foundation urged network stakeholders to use Kiln for testing “to ensure a smooth transition over the existing public testnet.”

“We strongly recommend that developers perform a full test and deploy cycle on Kiln, and report any tooling or dependency related issues to the project’s maintainers,” confirmed ethereum developer Tim Beiko in a March 14 tweet Kiln is live and will soon be ready to merge with the beacon chain. The testnet launched over the weekend in proof-of-work mode only.

Kiln is now running in a proof-of-work (PoW) test environment for Ethereum developers, node operators and stakers. This is the last public testnet before the entire network transitions from PoW to Proof of Stake this year. Kiln will fully test the merge sometime this week.

Beiko told Cointelgraph today that Kiln’s launch “was about a week or so from launch to merge, which is definitely their intent.” He said the ethereum developers wanted to “give the community a chance to test their product through the merger.”

Kiln was initially launched as a PoW testnet, mimicking the operating environment of the Ethereum network. It runs in parallel to the Beacon Chain, the first major PoS component of Ethereum 2.0 (now called the consensus layer), where ETH holders can stake their tokens and start securing the future of the Ethereum network.

The transition of the Ethereum (ETH) mainnet from PoW to PoS will be an important milestone in the development of the network. This next phase of Ethereum will see the blockchain’s security rely on staked tokens rather than expensive, power-hungry mining hardware.

The transition event of the Ethereum network from PoW to PoS will make the beacon chain dock with the Ethereum mainnet. According to an analysis by cryptocurrency financial newsletter Bankless, the merger could come as soon as June this year, although the official roadmap puts it at the first quarter of 2022.

The 10 million ETH in the Beacon Chain currently earns investors about 4.8% annually. Post-merger, that yield could grow to 15%, Bankless reported, reducing network operating costs to a fraction of its PoW predecessor.