The Cryptos News | Daily Bitcoin News
  • Home
  • News
  • Market Cap
  • Top Cryptos
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
    • Cardano (ADA)
    • Solana (SOL)
    • Tether (USDT)
    • XRP (XRP)
    • Polkadot (DOT)
    • Dogecoin (DOGE)
    • USD Coin (USDC)
  • Prices
  • Wallet
  • Crash
  • Investment
  • Exchange
  • Mining
  • Trading
  • Home
  • News
  • Market Cap
  • Top Cryptos
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
    • Cardano (ADA)
    • Solana (SOL)
    • Tether (USDT)
    • XRP (XRP)
    • Polkadot (DOT)
    • Dogecoin (DOGE)
    • USD Coin (USDC)
  • Prices
  • Wallet
  • Crash
  • Investment
  • Exchange
  • Mining
  • Trading
The Cryptos News | Daily Bitcoin News
No Result
View All Result
Home Mining

Prices of Ethereum’s original coin ETH soar as miners migrate ahead of Merge

Prices of Ethereum’s original coin ETH soar as miners migrate ahead of Merge
Share on FacebookShare on Twitter


Over the past two weeks Ethereum’s popular ETH coin jumped by nearly half as confidence builds over its hotly-anticipated switch, or “Merge”, to a leaner, more efficient blockchain technology called Proof-of-Stake. 

Yet its gains pale in comparison to the sudden surge of interest in another, long-forgotten alternative from the very beginning of Ethereum’s history. 

The value of ETC, a kind of illegitimate offspring birthed in 2016, has tripled during the same period and nearly taken out highs last visited in March, according to data from CoinGecko.

Its price surge really began to take off after Vitalik Buterin, Ethereum’s founder, encouraged users and developers last week to migrate back to his original creation if they were not convinced by the upcoming Merge.

“It’s a very welcoming community,” Buterin told the Paris conference. “If you like Proof-of-Work, you should go use Ethereum Classic, it’s a totally fine chain.”

ETC resulted from the so-called “DAO Hack” of the Ethereum network in which $60 million was successfully stolen from a decentralized autonomous organization just a year after Buterin’s creation had first gone live in July 2015—at the time a fortune for a fledgling crypto industry.

A vote was held by DAO users responsible for governance decisions, with a majority supporting a “hard fork” in the chain that would restore investors their stolen money. 

Since the decision was highly controversial, another part of the community refused to play along and instead continued with the original chain, known as Ethereum Classic, and its native currency ETC. 

Buterin’s comments have helped rekindle interest in the ETC cryptocurrency from miners, most of whom have not had it easy with the recent collapse in ETH and now face effectively losing their income entirely. 

The reason is that Ethereum, the second most popular blockchain after Bitcoin, will no longer require its services once it switches to a faster, more efficient technology as part of the Merge tentatively scheduled for September 19th. 

Replacing them will instead be stakers, who will assume their job maintaining the security of its trustless payment network. 

Confronted with the imminent loss of business, mining pool AntPool pledged to invest $10 million on Tuesday to support further development of Ethereum Classic, which is now run independently.

Mining vs Staking

To understand the difference between miners and stakers, its important to first understand the underlying technology.

Normally financial transactions require a trusted counterparty like a bank to ensure both sides of an exchange can fulfill their end of the deal before it clears the trade and credits or debits an account.  

Cryptocurrency changes hands on an entirely permissionless basis, however. Complete strangers can buy and sell coins using anonymous wallets without fear of being shortchanged. 

That’s because an asset like Bitcoin operates using a shared ledger of transactions distributed to everyone interested in maintaining the network. Business is recorded in the form of blocks on a chain with miners paid newly minted Bitcoin as an incentive to validate each of these immutable entries. 

This majority consensus mechanism is known as Proof-of-Work (PoW) and it requires an enormous amount of computing power for each miner to keep his or her copy of the ledger always up to date and current.

Because Bitcoin’s network prioritized security and decentralization above all, it requires enough electricity to power a small country and can only process transactions at a snail’s pace by today’s standards. 

Will Ethereum miners fork or move to Ethereum Classic?

— Dennis Porter (@Dennis_Porter_) July 26, 2022

That’s why new types of blockchain technology have emerged such as Solana that take a completely opposite approach, using what is known as Proof-of-Stake (PoS) to improve energy efficiency and scalability to achieve speeds similar to credit card giant Visa.

Instead of transactions being validated by whoever is willing to set aside their computing power as a mining rig, people stake a certain amount of their own holdings much like they would a security deposit. 

The downside to this solution is that more influence is centralised in the hands of a smaller, select number of people who stand to benefit from being the only ones that can reap blockchain rewards by maintaining the network. 

There are penalties to ensure the system is not abused, however. In the event of an attack, either staged with intent or permitted through negligence, their staked crypto can however be forfeited in part or whole.

Ethereum is now in the process of switching from PoW to its so-called Beacon chain currently running in parallel that uses PoS. Validators that want to earn crypto must agree to first lock up 32 ETH, roughly $55,000 at present value.

For those miners either not willing or able to do so, they can switch to Ethereum Classic.

“They’ll definitely welcome Proof-of-Work fans,” Buterin said.

Sign up for the Fortune Features email list so you don’t miss our biggest features, exclusive interviews, and investigations.





Read More:Prices of Ethereum’s original coin ETH soar as miners migrate ahead of Merge

Tags: AheadCoinETHEthereumsMergemigrateminersOriginalPricessoar
Previous Post

FTX wins full approval to operate crypto exchange in Dubai

Next Post

New to The Street TV / Newsmax TV announces This Week’s TV Broadcast Line-up, Episode

Related Posts

Public weighs in on noise from bitcoin mining operation

Public weighs in on noise from bitcoin mining operation

by The Cryptos News
July 30, 2022
0

NIAGARA FALLS, N.Y. — Frank Peller couldn’t understand what was happening outside his home.“I thought it was a 747...

Chinese Fake Loan App Racket Used Crypto, Apple, Google Questioned On Crypto Apps Review,

Cryptojacking Cases Are Rising Globally, Why So And Should This Worry You?

by The Cryptos News
July 30, 2022
0

According to the internet security company Kaspersky, cryptojacking is an act of mining cryptocurrency by hacking into someone else’s...

Chainalysis Report Says $2.2 Million in Crypto Has Been Sent to Pro-Russian Groups in

Chainalysis Report Says $2.2 Million in Crypto Has Been Sent to Pro-Russian Groups in

by The Cryptos News
July 29, 2022
0

According to a report stemming from the blockchain intelligence company Chainalysis, the firm identified 54 pro-Russian groups that have...

This Company Is Buying More Bitcoin in This Crypto Crash — Should You Do the Same?

Win Streak May Continue For Malaysia Stock Market

by The Cryptos News
July 29, 2022
0

(RTTNews) - The Malaysia stock market has finished higher in back-to-back sessions, gathering almost 30 points or 2 percent...

Next Post
New to The Street TV / Newsmax TV announces This Week’s TV Broadcast Line-up, Episode

New to The Street TV / Newsmax TV announces This Week’s TV Broadcast Line-up, Episode

Subscribe
Login
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments

Trending News

Payperless Crypto Wallet announced working on NFT tokens support

Payperless Crypto Wallet announced working on NFT tokens support

June 25, 2022
June’s Red-Hot Inflation Report Rattled Bitcoin and Ethereum Prices. What That Means for

June’s Red-Hot Inflation Report Rattled Bitcoin and Ethereum Prices. What That Means for

July 14, 2022
Ripple’s Counsel Urges US Lawmakers to Urgently Pass ‘Sensible’ Crypto Legislation Amid

Ripple’s Counsel Urges US Lawmakers to Urgently Pass ‘Sensible’ Crypto Legislation Amid

July 30, 2022
ADVERTISEMENT

Investment

Buying Bitcoin on the Dip? 3 Things the Smartest Investors Know About Crypto | The Motley

Buying Bitcoin on the Dip? 3 Things the Smartest Investors Know About Crypto | The Motley

July 30, 2022
Study up and become a more informed crypto investor with this bundle

Study up and become a more informed crypto investor with this bundle

July 30, 2022
Crypto Exchange KuCoin Launches NFT ETFs By Benzinga

Crypto Exchange KuCoin Launches NFT ETFs By Benzinga

July 30, 2022
Is It Right Time To Invest In Crypto Market? Crypto Expert Shares Bullish Indicator

Is It Right Time To Invest In Crypto Market? Crypto Expert Shares Bullish Indicator

July 29, 2022
$ETH-Based Investment Products Leading Bounce-Back in July, Says CryptoCompare Research

$ETH-Based Investment Products Leading Bounce-Back in July, Says CryptoCompare Research

July 29, 2022

Prices

Latest Report Shows Cryptojacking Increased By 30% During The Crypto Slump

Latest Report Shows Cryptojacking Increased By 30% During The Crypto Slump

July 30, 2022
Tron price prediction as Unifi Protocol TVL explodes

Tron price prediction as Unifi Protocol TVL explodes

July 30, 2022
Bitcoin and Ethereum Prices Are As High As They’ve Been Since June Crypto Crash, But

Bitcoin and Ethereum Prices Are As High As They’ve Been Since June Crypto Crash, But

July 30, 2022

Crypto Flipsider News – Crypto Market Rally; Nirvana (NIRV) Exploited; Vasil Delayed;

July 29, 2022

Trading

CoinFLEX: Amid liquidity crisis, the cryptocurrency exchange had this to say

CoinFLEX: Amid liquidity crisis, the cryptocurrency exchange had this to say

July 30, 2022
SEC Chairman Publishes Video Outlining Plan to Regulate Crypto Trading Platforms –

SEC Chairman Publishes Video Outlining Plan to Regulate Crypto Trading Platforms –

July 30, 2022
Analysis | Why the Crypto World Flinches When the SEC Calls Coins Securities

Analysis | Why the Crypto World Flinches When the SEC Calls Coins Securities

July 29, 2022
FTX wins full approval to operate crypto exchange in Dubai

FTX wins full approval to operate crypto exchange in Dubai

July 29, 2022
Crypto exchange Zipmex files for bankruptcy protection in Singapore

Crypto exchange Zipmex files for bankruptcy protection in Singapore

July 29, 2022
  • About Us
  • Contact Us
  • Terms of Use
  • Privacy Policy
  • DMCA

© 2021 Thecryptosnews.com

No Result
View All Result
  • Home
  • News
  • Market Cap
  • Top Cryptos
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
    • Cardano (ADA)
    • Solana (SOL)
    • Tether (USDT)
    • XRP (XRP)
    • Polkadot (DOT)
    • Dogecoin (DOGE)
    • USD Coin (USDC)
  • Prices
  • Wallet
  • Crash
  • Investment
  • Exchange
  • Mining
  • Trading

© 2021 Thecryptosnews.com

wpDiscuz