Ethereum’s Merge, which changes the network’s protocol, is not beneficial to everyone. In fact, Ethereum miners will become obsolete as a result. As a backlash, a group called “ETHW Core” wants to split off from the ETH blockchain and create another Proof of Work version. We explain this quickly.
What is the Merge?
In practice, the Merge means that Ethereum’s blockchain is no longer secured by miners: a protocol called Proof of Work. Instead, the network is now managed by so-called strikers: the Proof of Stake protocol.
This protocol allows users to “stake” ETH in exchange for a reward. Their ETH is then used to keep the network running and validate transactions; something previously done by Ethereum miners.
The group called ETHW Core disagrees and comes up with a counter-reaction: ETHW. This is a new offshoot of the Ethereum blockchain, which should get the currency back to Proof of Work. Otherwise, of course, the miners become obsolete.
ETHW to be announced 1 hour in advance
ETHW Core calls this project ETHPoW and wants to accomplish it with the associated token ETHW. The group says this transition will take place 24 hours after the Merge.
“ETHW mainnet will happen within 24 hours of the Merge. The exact time will be announced 1 hour before the launch with a countdown timer and […] will be made public when the time is up,” the group wrote in a Sept. 13 tweet.
Why fear competition?
In a post half a month ago, the group already described why “Proof of Stake is a gamechanger,” but rather negatively.
“It only makes sense to proceed with a PoW Ethereum, which should be a no-brainer for those who favor openness and the free market. After all, there is no downside. And, if PoS Ethereum is really that great, why fear competition?” the group argues.
Major concerns
There is now some concern about this ETHW plan. Former Ethereum founder Hudson Jameson wondered why the ETHW split-off is not happening until after the Merge. The hash power (computing power of crypto-miners) might be too small to thwart a hack.
“I have serious doubts that they will gain much hash power when they launch after the Merge. Hash power will be on other chains by then and the value of ETHPoW is already weak,” he wrote.
Currently, only a trading contract of ETHW (i.e., not the real currency) is available. It was worth $198 at its high, and $23.80 at its low. This all happened in the 37 days this trading contract has been live. So ETHW is very volatile and risky even before the coin is live.
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