Why the Ethereum Fusion will cause price volatility in Ethpow

Why the Ethereum Fusion will cause price volatility in Ethpow

While the hours pass the merger of Ethereum, the plans to focus on die-hard proof-of-work supporters-as well as the growing view of volatility for the emerging token.

The Merge is intended to switch the mechanism of Ethereum blockchain to the processing and validation of transactions from ProOF-of-WORK-a similar mechanism as that of Bitcoin, albeit technically different-to proof-of-stake, probably someday in the early Thursday morning ET.

A relatively small but loud minority of ethericashing Prepare the protocol recently tweeted " The ETHW-MANNET will take place within 24 hours after the merger. "

"The exact time is announced 1 hour before the start with a countdown timer and everything, including the final code, binary files, configuration files, node information, RPC, Explorer, etc.

Not everyone is so optimistic about the realizability of the Contrarian project- in short or long-term.

ETH owners receive ETHPOW-TOKEN in a ratio of 1: 1 from the air, but the token will only have very limited places where it can be output or used, causing it.

Sunny Aggarwal, co -founder of Osmosis Labs, told Blockworks: "Most tokens on Ethpow will go to zero."

CIRCLE, the issuer of USDC-the largest dollar-supported stablecoin, which is issued on the Ethereum blockchain, with a market capitalization of more than 45 billion US dollars- confirms that the company plans to fully support the POS chain after the merger. Defi projects that use USDC as security should have practically no value in the Pow chain.

The merger is said to bring returns from 7 % to 14 % on the first day, said Tom Dunleavy, Senior Research Analyst at Messari, tweeted .

Nevertheless, Aggarwal said that the Ethpow token will probably still have an element of eigenvalvaly.

decentralized protocols, such as z uniswap that do not run over oracle-or bridges between a specific blockchain and other investment classes-should continue to work on the proof-of-work version of ether.

"Uniswap does not require oracle," said Aggarwal. "It has no dependencies, so it can continue to work," he said.

After the merging, there is an easy way to be able to distinguish between ETH POS and ETH Pow, in examining the chain ID or a unique series of numbers that effectively provide a smart contract of which blockchain comes from a certain asset.

As an Ethereum Classic and Ethereum 2016, a hard fork - a fundamental event that leads to a crypto protocol in two or more blockchains - hesitated the developers of both parties to change their respective identification mechanisms. The move enabled so-called "replay" attacks, in which transactions on the former Ledger were also considered valid on the latter.

But in the case of Merge this is unlikely. Proof-of-work developers have already The plan is confirmed to use a more modern verification solution as a practical problem.