Ethereum co-founder Vitalik Buterin said the upcoming merger of the blockchain with proof-of-stake consensus will not adversely affect miners minting new tokens on the blockchain’s predecessor, Ethereum Classic.
Buterin said during a webinar on Saturday that he does not expect any adverse impact on the blockchain, as the majority of the ethereum community supports the merger. The merger with proof-of-work removes the need for Ethereum miners who currently use expensive mining equipment to secure the network and earn ETH in the process, a merger that could result in significant financial losses.
As a result, many miners will likely flock back to the original Ethereum blockchain, Ethereum Classic, which still uses proof-of-work. The roots of Ethereum Classic can be traced back to a philosophical divide in the Ethereum community following the 2016 hack of The DAO, a decentralized autonomous organization whose operating rules are encoded in code contained in smart contracts.
The DAO was hacked for $3.6 million and split the Ethereum community. A faction voted to move funds from The DAO’s smart contract to another. In contrast, others choose to keep existing smart contracts. The first group opted to move funds from the smart contract to the smart contract on a new chain or “fork”, while the others opted to keep the old blockchain, Ethereum Classic, which still uses a proof-of-work consensus mechanism.
Users shouldn’t notice any difference, Beiko says
There are concerns that miners flocking to Ethereum Classic could derail the merger. Ethereum has experienced a spate of denial-of-service attacks after its 2016 fork, and crypto exchanges are expected to proceed cautiously when the merger occurs. Ideally, users shouldn’t notice any difference, says developer Tim Beiko.
Buterin added that Ethereum Classic has a strong community and a strong proof-of-work diehard product. The community strongly advocates the value of proof-of-work. Still, the market could be split.
Buterin wants people not to lose money
The decline in ethereum mining revenue due to persistently low ethereum prices has put miners under financial stress. Institutional bitcoin miners had to sell bitcoin to bolster balance sheet liquidity. Others lend money to bitcoin miners, called application-specific integrated circuits.
Butlin Say He hopes, no matter what, people won’t lose money.
He said in May 2022 that the merger could take place in August, barring any problems. The issues could mean the merger is delayed until September or October 2022.
As of press time, Ethereum is hover around $1718.
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