The biggest improvement in Ethereum’s history is just around the corner. The Merge will immediately change Ethereum from a Proof-of-Work blockchain to a Proof-of-Stake. The change will speed up and lower the cost of the top blockchain for smart contracts and dApps. Excited traders have driven Ether prices up by around 52% in the last 30 days.
Some miners are facing declining profits and the obsolescence of mining equipment costing billions of dollars. And to safeguard their investment, they’re threatening to keep up the Ethereum network’s original Proof-of-Work configuration.
According to Colin Wu, a Chinese crypto journalist, The Merge will replace $5 billion worth of GPU and ASIC-based mining equipment.
On July 31, Wu revealed that Chandler Guo, a Chinese miner and former advisor to Binance, had predicted that after Ethereum switches to PoS, a half-dozen PoW forks would appear.
The Ethereum Foundation researcher, Justin Drake, downplayed the danger of PoW forks. Drake claimed that because there is such a strong social consensus in favour of switching to PoS, he anticipates little economic activity on the PoW chain.
According to Marc Zeller, who oversees Aave’s developer relations, any PoW forks would make stETH useless. He claimed in a tweet that stETH won’t be exchangeable for Ether, leaving a “$1.4B hole” in the financial statements of an Aave PoW fork.
According to Bob Summerwill, executive director of ETCCooperative, a business that provides grants and funding to the Ethereum Classic ecosystem, the network effects of DeFi and stablecoins will ultimately cause the failure of PoW Ethereum forks.