Ethereum co-founder Vitalik Buterin said that the upcoming consensus proof of stake blockchain merger will not negatively impact miners minting new tokens on the blockchain’s predecessor, Ethereum Classic.
Speaking at a webinar on Saturday, Buterin indicated that he does not expect any negative effects on the blockchain as most of the Ethereum community supports the merger. The Proof of Work merger negates the need for Ethereum miners who currently secure the network using expensive mining equipment and earn ETH in the process, and whose merger could result in significant financial loss.
As a result, many miners can go 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 split in the Ethereum community following the 2016 hack of The DAO, a decentralized autonomous organization whose rules of operation are encoded in code contained in a smart contract.
The DAO was hacked to the tune of $3.6 million and the Ethereum community split. One faction voted to transfer funds from one DAO smart contract to another smart contract. In contrast, others have chosen to keep the existing smart contract. The first group chose to move funds from a smart contract to a smart contract on a new chain or “fork,” while others chose to keep the old blockchain, known as Ethereum Classic, which still uses a proof-of-work consensus mechanism.
Beiko says users should not notice any differences
There are concerns that miners flocking back to Ethereum Classic could disrupt the merger. Ethereum underwent a series of denial-of-service attacks after the 2016 fork, and cryptocurrency exchanges are expected to proceed with caution as the merger occurs. Ideally, users shouldn’t notice anything different, says developer Tim Beiko.
Buterin added that Ethereum Classic has a strong community and a solid product for Proof of Work enthusiasts. The community vigorously promotes Proof of Work values. However, the market can still be divided.
Buterin hopes people don’t lose money
The decline in revenue from Ethereum mining caused by the prolonged downturn in the price of Ethereum has already put miners under financial pressure. Institutional bitcoin miners have been forced to sell bitcoins to boost liquidity on their balance sheets. Others take out loans against bitcoin mining machines, known as application-specific integrated circuits.
Buterene He said He hopes, however, that people will not lose money.
In May 2022, he said that unless there were any problems, the merger could happen in August. Problems could mean delaying the merger to September or October 2022.
At the time of publication, Ethereum was hover About the $1,718 mark.
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