VRB News
Virtual Reality Brisbane
  • Home
  • About us
  • IT news
  • Tech
  • World
  • Contact
No Result
View All Result
  • Home
  • About us
  • IT news
  • Tech
  • World
  • Contact
No Result
View All Result
No Result
View All Result
Home IT news

Tether and USDC Support Ethereum Merge: The End of ETH Mining?

admin by admin
August 11, 2022
in IT news
0
Tether und USDC unterstützen Ethereum Merge: Das Ende des ETH-Minings?
0
SHARES
60
VIEWS
Share on FacebookShare on Twitter

After Chainlink, the two largest stablecoin providers Tether and Circle have now announced support for the upcoming Ethereum merge.

Both Tether and Circle published a public statement on the upcoming Ethereum merge on August 9, 2022, in which the consensus mechanism of the blockchain will be switched from proof-of-work (POW) to proof-of-stake (POS). This could mean the end of ETH mining, as more and more participants in the ecosystem are advocating for the POS consensus mechanism.

USDC and Tether prefer POS

USDT and USDC are the two largest stablecoin providers on the market and at the same time the third and fourth largest cryptocurrencies by market capitalization (about $ 66 billion and $ 54 billion). USDC is also the ERC20 token with the largest market capitalization. Both stablecoins play a significant role for the DeFi ecosystem. Because the stablecoins allow traders and users to protect themselves from the strong volatility of cryptocurrencies.

With the Ethereum merge, a so-called hard fork takes place, in which two almost identical versions of the Ethereum blockchain are created. The problem: This also copies the stablecoins that are backed by assets and real fiat currencies. USDC is clearly in favor of the new proof-of-stake version of Ethereum. In the official statement it says:

“While we are not speculating on the possibility of forks after the Ethereum Mainnet Merge, USDC as an ETH asset can only exist in a single valid “version”, and as mentioned earlier, our only plan is to support the updated Ethereum PoS chain, without exceptions.”

Tether is also behind the new consensus mechanism in order to “one of the most important moments in crypto history” there is no need to create an attack surface or confusion and is clearly in favour of the new consensus mechanism.

Ethereum Merge: The End for ETH Miners?

As it stands, the era of Ethereum miners could soon be over. With the old proof-of-work consensus mechanism, mining was still necessary to validate ETH transactions. After the merge, only 10% of the miners will be active for security reasons. After that, all ETH transactions will be processed via proof-of-stake.

Since the two largest stablecoin providers will not support an ETH fork that uses the old POW consensus mechanism, it would be extremely difficult for ETH miners to build a new Ethereum ecosystem via a new fork. However, not only the stablecoin providers, but also numerous other participants in the previous ecosystem clearly spoke in favor of the new consensus mechanism.

EthereumEthereum: A picture of BeInCrypto.com

For example, the Oracle service provider Chainlink stated that it no longer wanted to support POW. Chainlink is one of the most important data service providers in the ecosystem and provides other crypto projects with the necessary data for processing programs and smart contracts.

Ethereum co-founder Vitalik Buterin explained that apart from “some outsiders”, there are no participants in the ecosystem who will support POW:

“From what I’ve seen, they’ll all prefer the proof-of-stake side.”

Nevertheless, Buterin believes that ETH miners could find a new home at Ethereum-Classic. Buterin, however, does not expect that there will be a mass-capable ETH adoption based on POW:

“So I don’t expect it (POW) to be widely accepted in the long term. Simply because I think Ethereum Classic already has a better community and a better product for people with proof-of-work.”

Previous Post

Bitcoin Price Boosted by New Inflation Figures, Ethereum Reaches 2-month high

Next Post

Incorrect virtual reality settings in nVidia drivers

admin

admin

Related Posts

How to Grow a YouTube Channel with ScaleLab
IT news

How to Grow a YouTube Channel with ScaleLab: Effective Strategies for Creators

February 4, 2025
Sticker mockups
IT news

Sticker mockups: how to visualize your ideas professionally and efficiently

January 13, 2025
Ways to Get Free Senegal Proxies for Work and Surfing
IT news

Ways to Get Free Senegal Proxies for Work and Surfing

December 24, 2024
Crypto Betting Frontiers
IT news

Crypto Betting Frontiers: The 2025 Landscape

December 6, 2024
iGaming Marketing Trends for 2025
IT news

iGaming Marketing Trends for 2025: Adapting to a Rapidly Changing Landscape

December 5, 2024
Next Post

Incorrect virtual reality settings in nVidia drivers

Premium Content

Johnson & Johnson is planning the final investigation of the vaccine in September

Johnson & Johnson is planning the final investigation of the vaccine in September

August 21, 2020
The Ultimate Game Showdown of 2023: Top Features and Insights

The Ultimate Game Showdown of 2023: Top Features and Insights

January 26, 2024
War Dust, the Stand Out team presents its new Battlefield type game

War Dust, the Stand Out team presents its new Battlefield type game

January 1, 2022

Browse by Category

  • Games
  • IT news
  • Tech
  • World

VRB News is ready to cooperate with webmasters and content creators. Send an email to info@virtualrealitybrisbane.com

Categories

  • Games
  • IT news
  • Tech
  • World

Recent Posts

  • How to Grow a YouTube Channel with ScaleLab: Effective Strategies for Creators
  • Sticker mockups: how to visualize your ideas professionally and efficiently
  • Ways to Get Free Senegal Proxies for Work and Surfing

© 2023 - The project has been developed ServReality

No Result
View All Result
  • Home
  • About us
  • IT news
  • Tech
  • World
  • Contact

© 2023 - The project has been developed ServReality

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?