Vitalik Buterin suggests a blockchain project for crypto miners as the Ethereum blockchain is on course to transition from proof-of-work (PoW) to proof-of-stake (PoS). The Merge is expected to happen in September.
Vitalik said in his speech on the 21st that if you like POW, you should use Ethereum Classic (ETC), which is totally a fine chain. (Live video at 35:50) Currently, Ethereum is expected to start the merge of POW to POS in September. https://t.co/nAtKh9fHyA
— Wu Blockchain (@WuBlockchain) July 25, 2022
PoS versus PoW
Following the upcoming Merge upgrade on the Ethereum network, the second-largest blockchain project by market capitalization will no longer support mining activities.
That is, the Ethereum blockchain will no longer operate under a proof-of-work (PoW) consensus algorithm but rather proof-of-stake (PoS).
While this is a huge upgrade, crypto miners will be affected negatively as they will lose a major source of income. This is because, in a proof-of-stake (PoS) network, cryptocurrency owners validate block transactions based on the number of coins a validator stakes.
Whereas proof-of-work (PoW) consensus algorithm is a decentralized consensus mechanism that requires members of a network to expend effort solving an arbitrary mathematical puzzle to validate transactions and also mine new tokens.
In other words, proof-of-work mechanisms require miners to solve cryptographic puzzles while proof-of-stake mechanisms require validators to simply hold and stake tokens. To note, there are mining rewards for miners on PoW networks.
Ethereum Classic is a Fine Chain, Says Vitalik Buterin
In the previous week, Ethereum co-founder Vitalik Buterin while giving a speech pointed out that the Ethereum Classic blockchain is a good option for crypto miners. He noted that those who like proof-of-work blockchains could migrate to Ethereum Classic citing that it is a fine chain.
Ethereum Classic is a hard fork of Ethereum, launched in July 2016. It is said that the blockchain project came to be in response to contract censorship on sister chain Ethereum. Reportedly, Ethereum Classic has proven its ability to resist censorship.
Ultimately, Ethereum Classic which has a native token with the ticker ETC combines the technology of Ethereum with the philosophy of Bitcoin. Ethereum Classic is uniquely positioned to be the smart contract platform of the future.
More so, it is an open-source platform, supporting a modified version of Nakamoto consensus via transaction-based state transitions executed on a public Ethereum Virtual Machine.