Where will Ethereum miners go after The Merge? The Merge is finally here. The update transforming the Ethereum blockchain so that it can now use the Proof of Stake mechanism instead of the Proof of Work mechanism took place on Thursday, September 15.
As a result, all projects on Ethereum that used the blockchain with Proof of Work or even miners are no longer relevant. Therefore, the question that we are entitled to ask is where will these minors migrate from now on?
The Merge changes things for Ethereum.
The Merge having taken place has many consequences on the future of Ethereum. Of course, it is not possible to fully define yet how far in the long term this will bring about profound changes for this blockchain.
On the other hand, as of now, this should reduce the energy consumption of the blockchain by at least 99% thanks to the Proof of Stake mechanism.
Indeed, unlike Proof of Work which required many miners to compete to calculate complex equations in order to verify the security of the network, for Proof of Stake this is no longer the case.
With this new protocol, miners are no longer necessary, but on the contrary, they are validators who carry out the security checks of the network. These are chosen randomly by the algorithm, which considerably reduces energy consumption on Ethereum.
Of course, even though most users and investors welcomed the news with open arms, for some of the miners it was not a good thing. They must now find a new blockchain to continue their projects.
READ MORE: Ethereum Merge Explained
The Ethereum PoW fork
As a result of The Merge, new blockchains have seen and will see the light of day, this is particularly the case of Ethereum PoW (ETHW) which is a fork of Ethereum allowing the use of the Proof of Work mechanism and functional one day after The Merge.
It is obviously somewhat of a copy of the Ethereum blockchain if Proof of Stake had never happened, an ideal blockchain for miners.
Thus, many mining pools that have operated in the past have decided to migrate to Ethereum PoW in order to continue their activities. Recently, Nanopool has in particular its support for ETHW which is now active, since it was 24 hours after The Merge.
This is of course a positive sign for the development of ETHW. Other mining pools like Poolin, 2miners, Antpool, and even BTC.com among many others have also decided to join the project.
ETHW talks more about his project
Beyond the various mining pools joining the project, the last few days there have been a lot of new things for ETHW and in particular some announcements from the developers.
In particular, in an open letter to the community, we learned that ETHW would be launched only 24 hours after The Merge, enough not to waste time. In addition, it was via Twitter that they reminded miners to withdraw their ETH as soon as possible from the Ethereum blockchain.
%20Official%20%23ETHW%20%23ETHPoW.png)
Since its launch, ETHW has experienced a decline in price progression, but with this announcement, the value rose and then fell again. This new asset must be given time to adapt, especially with such a complicated bear market.
At the time of writing, the price of ETHW fell sharply from more than $30 to only around $8 in a few hours due to a lack of confidence among investors who found themselves in limbo.
Beyond ETHW, other competitors are also present following The Merge, such as Ethereum Classic or Ravencoin, which have experienced a marked increase in order to lose value again following the current market situation.
0 Comments