After years of waiting, Ethereum has finally abandoned PoW in favor of PoS. However, some disagreed with the transition, especially miners who now have no place on Ethereum after the merge since it now deals with validators. So that is how EthereumPoW came to be.
EthereumPoW is a network launched by former Ethereum miners in response to the merge update. ETHW is listed on several crypto platforms.
Thus, expressing their disagreement, the miners split off and organized a new network that continues to use the proof-of-work algorithm.
What Is EthereumPoW?
EthereumPoW (ETHW) is a ‘hard fork’ of the Ethereum blockchain following the latest upgrade of the network. Supporters of the hard fork include miners unhappy with the transition to the new algorithm. As part of the update, Ethereum switched to a proof-of-stake algorithm, with the fork version still running on a proof-of-work algorithm.
ETHW is similar to the old Ethereum network in that it is a branched-out version of the blockchain. The old network’s tokens and smart contracts now run on the specified fork.
Where Did ETHW Come From?
The Ethereum PoW fork arose because a small but largely active group of participants in the crypto community felt that the consensus proof-of-work mechanism should be followed. Among these groups are many miners who intend to keep their profits after Ethereum switched to the consensus proof-of-work mechanism on September 15. In recent months, prominent miner Chandler Guo has supported ETHW, arguing that Ethereum will take away cryptocurrency miners and jobs. In addition, Justin Sun, the founder of Tron, has joined in supporting ETHW in the same way.
The embedded token for the EthereumPoW network is ETHW, which only some exchanges support so far. Several projects have started supporting the ecosystem in the short time since the launch of the EthereumPoW network. These include several decentralized wallets like Guarda and other Web3 platforms.
How Does EthereumPoW Work?
To validate transactions and create new blocks, as with other PoW cryptocurrencies such as Bitcoin, ETHW miners must use their computing power to solve a random mathematical problem, resulting in ETHW.
Unlike the more efficient proof-of-stake, proof-of-work is considered a more decentralized way to verify transactions because it requires more computers on the network to confirm and approve transactions.
ETHW miners will still solve arbitrary mathematical problems to validate transactions and mine new tokens to prevent system abuse. As a reward, they will receive ETHW, the main asset of the ETHPoW chain.
How to Buy and Store EthereumPoW?
Many cryptocurrency platforms support the purchase of Ethereum tokens with value confirmation. Though Guarda Wallet supports the token, you cannot buy the token on Guarda. You can only send, exchange, receive, and store ETHW. There are various ways to get it if you wish to hold it in your wallet.
What Is the Future of Ethereum Proof-Of-Work Token?
The PoW consensus scheme has an incentive structure whereby miners have to make many hashes to determine the hash for the first matching block, resulting in higher power consumption. Meanwhile, the consensus mechanism adjusts the complexity of block hashing as the computational power of the network increases, resulting in a network-wide increase in hashing speed.
The energy consumed by losing miners is also wasted, forcing Ethereum to switch to the proof-of-stake consensus mechanism. ETHW is attractive to miners who have already invested in mining hardware. However, the PoS consensus method is less energy intensive and allows for inexpensive scaling of networks.
The proof-of-stake mechanism is still in its infancy. It could revolutionize blockchain security and make mining obsolete in the long run. But today, it is unknown whether PoS consensus algorithms will lead to the complete end of PoW mining.
ETHW vs. ETC
Just like ETHW, Ethereum Classic was forked from Ethereum. Although ETC uses a PoW algorithm like ETHW, ETC still has an edge due to its significant hash rate growth and steady price growth. Even though ETHW has been in the spotlight for quite some time now, we cannot overlook the fact that ETC has been in the market longer.
Looking at the current situation and the difficulties with ETHW, it is hard to say whether it will do well in the market like ETC.
ETHW vs. BCH
Bitcoin Cash is another forked token. It was forked from Bitcoin, and just like ETC and ETHW, it uses the PoW mechanism. But, just like ETC, it has been in the market for a long time, and crypto users already know about the BCH, unlike ETHW with very little information about it.
Although the project has several challenges, its future remains uncertain. ETHW is a network similar to the old Ethereum, as it is a branched-out version of this blockchain. This means that tokens and smart contracts from the old network now run on that fork. Ethereum PoW fork is supported by a group of miners who have stated their intention to keep the PoW chain after the merger, a term commonly used for the network’s transition to PoS.
The network was launched shortly after the merger took place. Still, its start was quite complicated as the network faced several technical problems, including the problem of network identification.
1. What is EthereumPoW?
EthereumPoW (ETHW) is a hard fork of the Ethereum blockchain. The hard fork was supported by the part of the community that did not want to switch from the proof-of-work algorithm to proof-of-stake.
2. Is ETHW safe?
ETHW uses the PoW mechanism. PoW offers a higher level of security and guarantees decentralization but sacrifices scalability to some extent. On the other hand, PoS offers higher scalability, sacrificing some security and decentralization.
3. How Does it Work?
To validate transactions and form successive blocks, like other PoW cryptocurrencies such as Bitcoin, ETHW miners must expend their processing power to solve a random mathematical problem, resulting in ETHW coins.