Ethereum Split is possible, but many remain optimistic about the merger
Ethereum Split is possible, but many remain optimistic about the merger
- miner who invested in the POW infrastructure could try to get the older Ethereum network
- "There are always winners and losers," Eulers CEO of the Defi protocol told Blockworks
With the long-awaited change from Ethereum from Proof-of-Work to Proof-of-Stake, the view is approaching a hard blockchain merges.
GALOIS Capital, an investment manager focused on cryptocurrencies, estimates the likelihood that the energy-intensive proof-of-work mechanism of Ethereum could survive the transformation-which could lead to two maintained Ethereum blockchains.
Blockchain development teams regularly push upgrades via Hard Forks, which divide logs into two parts. In this scenario, one of the blockchains is new and improved, while the other remains without upgrade. The market participants are expected to take over the new iteration while the old man is forgotten.
but contradictory opinions about a larger upgrade can lead to two separate ecosystems survive, each with its own supporters.
The idea of such a hard fork around the fusion of Ethereum was badly received by supporters of a proof-of-stake ethereum, including the founder of the blockchain, Vitalik Buterin.
wait, I read it above and am confused. Why does Twitter say that so many people I know follow @galois_capital ? Is it a famous parodie account?
- vitalik.eth (@vitalikbuterin) 30. July 2022
Bitcoin also gone through a number of hard forks, including a debate about the size of Bitcoin Used to process and to process transactions validate.
"In an ideal environment there will be a consensus that we all go on to the proof-of-stake blockchain, and there would be no argument about it, but whenever you make a big change, there are always winners and losers. And in this case there are some pretty clear losers," said Michael Bentley, CEO of Euler, a defi protocol without custody in Ethereum, which borrowed and relieved, compared to block works.
miner who invested in the infrastructure to reduce in proof-of-stake networks are most likely released after the merger, said Bentley. Although Miner could try to use their expensive rigs in other networks and even for non-crypto applications such as graphics processing, it could be logical to maintain the course.
keep the old Ethereum as security after the merger
ProOF-of-Stake networks-such as Ethereum in its current iteration and Bitcoin-require a lot of computing power to solve complicated puzzles to validate transactions on the blockchain and prevent double expenses.
You will be rewarded with digital currency for your efforts that are expensive and consume tons of energy. Proponents argue that proof-of-stake is more environmentally friendly because it can validate transactions without having to spend so much energy.
The only logical reason, Bentley believes to maintain the original ProOF-of-work network, is if the merging fails-although this result is unlikely when you consider that the recent Ethereum test networks were all successful.
"I don't think something will go wrong, this is mainly due to the way a consensus is achieved," said Bentley. "One of the great advantages of this is that it is drastically reducing the energy consumption of the Ethereum network and making it a more scalable network in the long term, so that it can support transaction speeds that could go beyond what could support centralized payment networks today."
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The contribution Ethereum Split is possible, but many remain optimistic about the merger is not a financial advice.
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