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Ethereum co-founder Vitalik Buterin said that merging the upcoming blockchain with proof-of-stake consensus will not negatively affect miners creating new tokens on the blockchain’s predecessor, Ethereum Classic.
Speaking in a webinar on Saturday, Buterin noted that he does not expect any negative impact on the blockchain, as most of the Ethereum community supports the merger. The proof-of-work merger negates the need for Ethereum miners who currently secure the network using expensive mining equipment and earn ETH in the process, for whom the merger could result in significant financial loss.
As a result, many miners could flock back to the original Ethereum blockchain, Ethereum Classic, which still uses proof of work. Ethereum Classic has its roots in a philosophical rift within the Ethereum community following the 2016 hack of The DAO, a decentralized autonomous organization whose operating rules were codified in code contained in a smart contract.
The DAO was hacked to the tune of $3.6 million and divided the Ethereum community. One faction voted to transfer funds from The DAO’S smart contract to another smart contract. Instead, others chose to keep the existing smart contract. The first group chose to move funds from smart contract to smart contract on a new chain or “fork”, while others chose to keep the old blockchain, known as Ethereum Classic, which still uses a proof-of-work consensus mechanism.
Users shouldn’t notice any differences, Beiko says
There are concerns that miners returning to Ethereum Classic could disrupt the merger. Ethereum suffered a wave of denial-of-service attacks after the 2016 fork, and crypto exchanges are expected to proceed cautiously when the merger happens. Ideally, users shouldn’t notice anything different, says developer Tim Beiko.
Buterin added that Ethereum Classic has a strong community and a strong product for proof-of-work die-hards. The community strongly promotes proof-of-work values. However, the market could be fragmented.
Buterin hopes that people will not lose money
The decline in Ethereum mining revenue caused by the widespread decline in Ethereum prices has already put miners under financial pressure. Institutional bitcoin miners had to sell bitcoins to boost liquidity on balance sheets. Others take out loans against bitcoin mining machines, known as application-specific integrated circuits.
Buterine he said he hopes that, in any case, people will not lose money.
In May 2022, he said that, barring any problems, the merger could happen in August. The problems could mean the merger will be delayed until September or October 2022.
At press time, Ethereum was fluttering around $1718.
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