In September 2022, the Ethereum network moved closer to completing its transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS).
The update is known as “The Merge” and combines the execution layers of the original Ethereum blockchain with those of the new PoS chain. This marks a significant landmark in its 2.0 release.
One of the more potentially intriguing brand-new cryptocurrencies is the Ethereum PoW hard fork (ETHW). Its nature and function are described in this article. Let’s begin.
Explore Ethereum PoW (ETHW)
With a native currency called ether, Ethereum is one of the biggest blockchains out there (ETH). The Ethereum platform is a major player in the decentralized finance (DeFi) industry, allowing users to develop their own applications, known as decentralized applications (DApps).
Following the hard fork, the Ethereum blockchain was updated and given the name Ethereum Proof of Work (ETHW). The primary aim of the developer and miner team, which is headed by crypto-savvy Chandler Guo, is the switch to ETHW, a Proof of Work consensus mechanism.
A group of Ethereum miners who were worried about being left behind by the switch to Proof-of-Stake created ETHW. They made the decision to continue using the previous Proof-of-Work network.
How Does ETHW run?
Like miners of other proof-of-work cryptocurrencies, ETHW miners employ computational power to solve a random mathematical puzzle in order to validate transactions and produce a new block. In exchange, they are rewarded with ETHW coins.
Proof-of-Work is viewed as a more decentralized method of attaining this aim because it requires computers dispersed throughout the network to confirm and approve transactions, whereas Proof-of-Stake is a more effective method of validating transactions.
ETHW’s Fork: Why Did It Occur?
The Ethereum network has been able to scale while lowering its carbon footprint and increasing its dependency on electricity thanks to the move away from GPU-based proof-of-work mining. However, this action has left a graveyard of abandoned mining equipment in its wake.
Although historically it has been quite profitable to mine Ethereum using the proof-of-work algorithm, many believe that proof-of-stake is a preferable method for promoting decentralization.
Additionally, miners who preferred to mine Ethereum Classic (ETC), which has recently been the target of numerous exploits, were compelled to do so. The ETHW Core community was established as a result, and a new proof-of-work blockchain was introduced.
Where to Purchase ETHW Tokens
ETHW, a token for Ethereum PoW, is now accessible on KuCoin, one of the top cryptocurrency exchanges in the world, along with the ETHW USDT trading pair. When transferring money, interacting with dApps, or running smart contracts on the Ethereum network, you can pay transaction costs with ETHW.
Difference between ETH and ETHW
ETHW and ETH have the following key distinctions.
Various Consensus Mechanisms
Validators are chosen at random to validate transactions once the network is converted to the PoS consensus process. Validators must stake at least 32 ETH to join the staking pool. The task of validators also includes the detection of fraudulent transactions. Moreover, the trading pair with the highest volume for ETH is ETH/USDT.
The validator will slash, or alter or suspend, the transaction if it is determined to be a hoax. As a result, the network is more decentralized than proof-of-work chains since it lacks centralized components.
Sharding or transaction volume support
The Ethereum network can be made more effective by using sharding. Ethereum uses 64 shards, or parallel networks, to execute transactions as quickly as feasible. Each shard can handle transactions independently of the others.
Without the need for specialized technology, blocks in Ethereum can be suggested and added to the network. Miners must, however, make a significant hardware investment in order to take part in Ethereum’s Proof-of-Work (ETHW) process and mine a block.
Transactions between shards are facilitated by the Beacon Chain, which serves as the ecosystem’s brain.The Beacon Chain was introduced in 2020 as a testing ground for the Proof of Stake method before it was formally implemented.
As a result, it worked alongside the initial Proof of Work chain. It began serving as ETH’s main chain, nevertheless, following The Merge. The Beacon Chain’s additional responsibilities include selecting validators, keeping track of their activity, and punishing those who try to verify fraudulent transactions.
The Merge was expected to be advantageous for the Ethereum PoW blockchain project. Nearly 20 previous Ethereum mining pools were persuaded to continue defending the network by the EthereumPoW team using airdrop incentives and charisma.
While a post-Merge market would offer an appropriate setting for a smart contract chain using Proof of Work as its consensus mechanism, some individuals believe Ethereum World to be more of a money-grabbing scheme than its rival Ethereum Classic. If the community supports Ethereum PoW more, it will surely succeed more than ETC.