The proposed fork of Ethereum will not only cause carbon emissions, but it will also lead to the exit strategy of mining syndicates. In the next few years, the network will undergo a major transformation. This will involve migrating from a proof-of-work to a proof-of-stake system.
The main advantage of a proof-of-stake system is that it eliminates the need for mining rigs. These are energy-hungry computers that process transactions.
It is very common for critics of cryptocurrencies to point out the climate impact of mining. Although it is not clear exactly how much emissions Ethereum contributes, it is estimated that it is on par with other countries’ mining activities.
By removing this issue from the blockchain, Ethereum has cleared another hurdle for the widespread adoption of technology. This is especially important for governments and investment bodies that are looking to reduce their greenhouse gas emissions.
Unfortunately, despite the potential advantages of blockchain technology, the mining industry is still going through a tough time. A group of miners is currently planning on holding a fork of Ethereum to create a new version of the network that is dependent on mining.
In order to maintain the integrity of the blockchain, the proposed fork involves completely copying the data and structure of the Ethereum network. However, it will also allow miners to continue their operations. Existing users will retain their ETH tokens, while those who wish to receive ETHW will get a new coin.
The group behind the proposed fork is led by prominent mining entrepreneur and cryptocurrency miner, Connor Guo. He was one of the developers of the Ethereum Classic, which was one of the most prominent forks of the blockchain in 2016. Due to its multiple attacks, the market cap of Ethereum Classic has dropped to just 4%.
Despite the potential problems that the proposed fork could cause, Guo still believes that it is possible to successfully implement it. He noted that the size of the mining industry and the cost of mining equipment are factors that will make the fork more feasible.
Unfortunately, despite the various advantages of blockchain technology, the mining industry is still going through a tough time. For many companies, the last-ditch exit strategy that they have is to hold a fork.
One of the main reasons why the proposed fork cannot work is it involves completely duplicating the various components of the Ethereum network, such as its smart contracts, account balances, and tokens. This means that all of the cryptocurrencies that were previously on the blockchain will now be part of the new chain.
When a chain is broken down, the community decides which chain is the real one and which one has no intrinsic value. If the proposed ETHPoW is to be successful, it needs the support of other users, businesses, and app developers. Without these, every token will become worthless.
Due to the complexity of the Ethereum ecosystem, it is unlikely that the proposed fork will be able to work. It includes thousands of different components, such as stablecoins, DeFi markets, and NFTs. Not something that you can easily pull off with just thin air.
Due to these factors, the leading stablecoin provider, known as Tether, has decided not to support the proposed fork. According to Paulo Ardoino, the company will only be supporting the post-merger version of Ethereum.
Without the support of the company, it is hard to see how a fork could work. According to Ardoino, the USDT is responsible for billions of dollars worth of transactions on Ethereum.
The company decided not to support the proposed fork due to the various complications that stablecoins and DeFi have. According to Ardoino, stablecoins should act responsibly in order to avoid disrupting the operations of their users.
According to him, stablecoins are already designed to prevent a fork from happening. He also noted that the only way that the proposed DeFiPoW could work is through new issuance.
Due to the complexity of the Ethereum ecosystem and its maturity, it is not feasible for a fork to happen. This means that the various applications and assets that are currently part of the network will become worthless if a rogue chain is created.