March 29, 2024

A major Ethereum miner refuses to switch to ETH 2.0 and prepares a network hard fork

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A major Ethereum miner refuses to switch to ETH 2.0 and prepares a network hard fork

One of the major Ethereum miners has announced the creation of a new minority network, ETHPoW, a haven for miners who want to escape Ethereum 2.0.

It is expected that after numerous delays,The transition of the Ethereum network to the Proof of Stake (PoS) consensus mechanism may take place in the second half of September. At least one of Ethereum's key developers, Tim Beiko, has mentioned September 19, 2022 as a possible date.

At that time as part of the crypto community withis looking forward to abandoning the Proof-of-Work (PoW) model and transforming the Ethereum network into version 2.0 using the Proof-of-Stake (PoS) model, the other part categorically does not share the expectation. PoW miners understand that expensive equipment for mining ether will remain out of use and the resources invested in the business may never pay off. Since their income will instantly drop to zero, and they will be completely excluded from the Ethereum ecosystem.

After months of debate and attemptsTo resist the future merger of Ethereum, crypto investor and one of the largest players in the Chinese mining ecosystem, Chandler Guo said that he plans to continue mining in the Ethereum PoW chain and is preparing a new hard fork of the network with a transition to the new blockchain ETHPoW.

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BitMEX analysts have studied the possibilityEthereum's post-merger network split, as well as the viability of the new ETHPoW blockchain, and concluded that it could "provide an exciting opportunity for traders and speculators in the short to medium term":

“Although ETHPoW may facewith many technical issues, as long as the chain survives, it is likely that there could be positive narratives surrounding the coin and leading centralized exchanges will likely list it. In any case, as a nostalgic throwback to the era of the Bitcoin-Ethereum split in 2016/17, ETHPoW could potentially spark interest among market participants.”

However, BitMEX points out to the community that the ETHPoW blockchain is “almost guaranteed to be a minority network, both in terms of coin price and economic potential.”

At the end of July, speaking at the EthCC conference, Ethereum co-founder Vitalik Buterin called
Ethereum Classic is an excellent network for miners and other fans of the Proof-of-Work algorithm to transition to.