cryptocurrency

The first Ethereum Proof-of-Work (ETHW) release code, announces the removal of EIP-1559

  • EthereumPoW released its first code that disabled the difficulty bomb and removed the EIP-1559 protocol.
  • Grayscale, the world’s largest asset manager, explains why having an ETH fork, i.e. ETHW, is not a good option.

The Ethereum blockchain network is currently on a major transition path to a Proof-of-Stake consensus model. However, there has been controversy recently as some ETH miners have suggested hard work on the Ethereum blockchain to continue the Proof-of-Work (PoW) issuance.

Interestingly enough, as it turns out, the ETHW kernel released its first code yesterday, August 15th.

  1. Disable the difficulty bomb.
  2. Changed EIP1559: Core fee for a multi-signature wallet shared by miners and the community.
  3. The difficulty of starting mining in ETHW has been adjusted.

However, soon after implementation, people started finding loopholes that would knock all the blocks before the London Fork. Twitter user zhijie wrote: “Ok, maybe I’m wrong, but the code below will change the root of the state in a block, eventually blocking the hash change. Not all blocks since the London fork can be accepted by the ethpow chain. In other words, ethpow will actually be Crossroads since London.”

However, the EthereumPoW (ETHW) team released a patched code and fixed the issue. As it turns out, EthereumPoW proponents are moving forward with acquiring the Ethereum blockchain based on the existing consensus model.

These supporters are basically miners who feel threatened by the POS transmission. Vitalik Buterin has completely distanced himself from this proposal. He said that the core Ethereum developers will not play any role with EthereumPoW.

Grayscale: Not applicable Ethereum (ETHW) fork

Crypto Grayscale Asset Manager explains that the Ethereum blockchain made its first comeback in 2016 to create an Ethereum Classic (ETC) version. However, Grayscale notes that the 2016 Ethereum ecosystem was much less advanced in terms of dApps, DeFi, and other features than it is today. Grayscale writes:

PoW forking of the existing Ethereum network will bring duplicate instances of all these tokens, which could pose significant challenges for developers and market participants. In fact, the sheer complexity of DeFi and the number of asset-backed tokens locked into the DeFi protocols pose a catastrophic risk to the price of ETHW due to the situations on the chain trying to liquidate.

An ETHW fork can also bring several operational issues to many Ethereum-based protocols. This is because the protocols will need to “define how to manage the value tokens held by duplicate Treasuries, duplicate tokens, NFT ownership, and more. How will governance rights be standardized?”

Some of the major stablecoin providers such as USDT and USDC have already said that they will not support the issuance of ETHW. In addition to Grayscale, he warns that investors need to be careful because the liquidity for ETHW may die very soon after the launch of the Ethereum PoS.


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