The Merger It’s finally here. The update has transformed the Ethereum blockchain so that it can now use the Proof of Stake mechanism instead of the Proof of Work mechanism Thursday, 15 September.
As a result, all projects on Ethereum used blockchain with Proof of Work or even that minors are no longer relevant. So, the question we are entitled to ask is where will these minors migrate from now on?
The Merge changes things for Ethereum
After the Merger, this has many ramifications for the future of Ethereum. Of course, how long this will lead to is not yet fully defined 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. In fact, 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 needed, but on the contrary they are validators who carry out the security checks of the network. These are last randomly selected by the algorithm which greatly reduces power consumption on Ethereum.
Of course, while most users and investors welcomed the news with open arms, it was not a good thing for some of the miners. They now have to find a new blockchain for continue their projects.
The Ethereum PoW fork
As a result of The Merge, new blockchains are appearing and will see the light of day, including the Ethereum PoW case (ETHW) is a fork of Ethereum that allows the use of the Proof of Work mechanism and functional one day after The Merge.
Somehow obvious a copy of the Ethereum blockchain if Proof of Stake never happened, it would be a great blockchain for miners.
Therefore, many mining pools that worked in the past decided to migrate to Ethereum PoW to continue their activities. Recently, Nanopool has especially supported ETHW a now active, since it was 24 hours after The Merge.
Nanopool is going to support the EthPow Ethereum fork which is expected to be desirable in 24 hours after the ETH Merge happens https://t.co/SDFWFnjx6e
— nanopool (@nanopool_org) September 14, 2022
It is of course a a positive sign for the development of ETHW. Other mining pools like Poolin, 2miners, Antpool or even BTC.com among many others have decided to join the project.
ETHW talks more about his project
Over there different pools miners who join the project, in the last few days there are many new things for ETHW and especially some announcements from the developers.
Especially in an open letter to the public we learned that ETHW will be launched only 24 hours after The Merge, quite without wasting time. In addition, it was through their twitter that they reminded the miners withdraw his ETH as soon as possible from the Ethereum blockchain.
ETHW Core: An open letter to the Ethereum community [3/9]: Mainnet Address and ETHW Mining Pool
It seems that the Ethereum Foundation will not slow down the move to PoS, so it’s time to talk about ETHW, the PoW chain, which is the backbone on which the Web3 is currently built.
— Official EthereumPoW (ETHW) #ETHW #ETHPoW (@EthereumPoW) September 14, 2022
Since its launch ETHW has declined in progress its price, but with this announcement the value rose and then fell again. This new asset needs time to adapt, especially with such a complex shaving market.
At the time of writing, the price of ETHW has dropped significantly from over $30 to just around $8 in a few hours due to lack of confidence investors, find themselves in uncertainty.
Beyond ETHW, other competitors are also present after The Merge, for example Ethereum Classic or even Ravencoin which have increased significantly only to lose value again following the current market situation.
The Merger finally happened. Check out our article to learn more about the long-term implications of this update.