The hard thing about hard forks...
We’ve written about ‘The Merge’ a couple of times now.
(For example, here we compared the change in Ethereum with the Kardashians).
We write about so much because it's an important change in the broader Web3 ecosystem.
But as with all change, there’s been some push back - especially from miners, who aren't too happy about their expensive mining equipment becoming obsolete.
Expensive mining rigs are essential for proof-of-work (the old system); but not for proof-of-stake (the new system).
So, when Chandler Guo, a prominent crypto miner and investor, proposed creating a duplicate of the Ethereum blockchain (via a 'hard fork') that would keep the the old proof-of-work (PoW) mining industry alive, there was some initial support.
Chandler's proposal/theory, went something like this:
He'd create the ‘ETHPOW’ token to gauge support for the idea of a hard fork. The more people bought it, the stronger the indicator.
A handful of exchanges would want to list the token and support it.
Finally, and most importantly - crypto traders would want to speculate on the token's price, before The Merge.
The first two steps went off without a hitch. The third, did not.
The token popped up to $140 in the first day or so, but since then it’s been all downhill.
More of a visual person? See for yourself.
The main problem with Chandler's proposal is that, while it's great for miners, it doesn’t really help users.
Ethereum was purpose-built to power decentralized apps (dApps), and the change to proof-of-stake mining will greatly increase the efficiency of the network; reducing energy consumption by 99.95%.
...so why would anyone choose to run their dApp on the old and inefficient technology, proposed by Chandler?
It would be like putting a gas engine in your brand new Tesla - sure, you can do it...but not everyone is going to want do the same.
Either way, Chandler gave it a shot and we respect him for that.
Happy Friday, everyone!
