Robert Steinadler, 4 months ago
The Merge is most likely to happen in late September and this has driven the price for ETH north of $1.500. While the developers are preparing to stage the last test before the release can be done, there are also people who are unhappy with the choices that the Ethereum community made. Miners will lose their jobs, since there is no place for them in this brave new proof of stake world, that Ethereum is about to become.
Who is Chandler Guo, why is he attempting to fork Ethereum, and does this make sense at all?
Guo is no stranger to the blockchain industry. He is an influential figure in China’s mining industry which already took a hit in May 2021, when the Chinese government banned mining all along. Now that the Merge is going to happen soonish, miners are again facing a devastating blow.
A large part of Ethereum mining depends on graphic cards rather than ASICs. This means that the hash power of these cards could be redirected to another network but the revenue might be lower since GPUs are unable to compete with AISCs in most cases. It is true that there are ASICs available for the Ethereum mining algorithm but GPUs are still competitive and highly used among miners.
This raises an interesting question: Where will all these miners turn to once the Merge has commenced? Guo wants to initiate a hard fork of Ethereum and create EthereumPoW which would allow him and other miners to continue operations on the new chain.
One thing to keep in mind is that Ethereum already had forked once in its history. It was in the year 2016 when Ethereum Classic rebelled against the decision to reverse the outcome of the DAO hack. Ever since the smaller network is up and running but is also faced difficulties like 51 % attacks during the last couple of years.
Most recently price and hash rate of Ethereum Classic increased since miners became aware that they have to look for an alternative chain that also supports GPUs. Ethereum Classic is very GPU friendly. After several attacks on the network, the mining algorithm was changed effectively banning services like NiceHash and ASICs. As a result of that change, it is also possible to mine ETC with GPUs that have 4 GB RAM which is in many cases a limiting factor.
It is not clear how EthereumPoW is going to build a smart contract ecosystem after the fork. A blockchain alone is not adding value to the chain. Decentralized financial applications are the reason why Ethereum became such a huge success. In conclusion, it will be important which proof of work chain will be supported by the miners but it will also play a large role in how many users are going to opt for a different chain. Another factor is the support of stablecoins and exchanges. That being said, both Ethereum Classic and EthereumPoW will most likely have a hard time trying to compete with Ethereum. Only a scenario where the Merge will result in complete catastrophe might help these smaller chains. While it is not possible to rule this out, the chances are very low.
Nov 20, 2022
Aren't two layers not enough for Ethereum? As Layer 2 platforms like Polygon and Arbitrum are thriving, developers in the Ethereum space are already thinking about additional chains to help the Ethereum ecosystem grow.
Nov 14, 2022
Ethereum's Shandong testnet is live. It allows developers to experiment with proposals of the so-called Shanghai upgrade. It is the first upgrade since the Merge of September 2022 and scheduled for the second half of 2023. A big update will be that investors who currently stake their ETH are finally able to withdraw. Second, the transaction fees that builders pay will be lower. Third, Layer 2 will become more scalable.
Oct 28, 2022
Google is looking into blockchain technology for quite some time. Most crypto enthusiasts associate Google with Hedera Hashgraph, but this is not the only field in which Google is active. Yesterday, the company announced the start of a service that is targeting blockchain developers and that could largely contribute to the future of blockchain technology. There are not a lot of infrastructure providers and therefore this is big news for the tech industry and blockchain-related projects. What is Google offering and why could this service become important in the future?
Oct 25, 2022
Ethereum has successfully shifted to proof of stake over 30 days ago. Many were sceptic about the impact on the network’s security and the long-term perspective. Some even feared that smart contracts could crash and Ethereum could become entirely unreliable. Most of these talking points turned out to be false or the real problem was not as severe as anticipated. With that being said, one specific positive effect was the reason for a pre-Merge rally and after some time has passed its effects are becoming better visible. Is Ethereum’s supply shrinking and will we witness a new era of scarcity of Ether?