Ethereum PoW (ETHW): A New Ether Derivative
Ethereum is one of the largest blockchains after Bitcoin. With a market cap of $163 billion, Ether is the second most popular digital asset. The Ethereum network acts as a hub for various cryptocurrency projects and is a major player in the DeFi world, allowing people to create their own dApps using their own tokens. Learn more about the Ethereum PoW cryptocurrency in a new StealthEX article.
Until recently, Ethereum operated on a Proof-of-Work (PoW) consensus mechanism. The blockchain relied on miners to solve a complex series of mathematical equations to add blocks to the blockchain and receive rewards for doing so.
Ethereum PoW. What is causing it?
In general, environmental, social and governance (ESG) factors have been a barrier to the widespread adoption of cryptocurrencies. While digital assets have many benefits, their energy-intensive verification systems prevent environmental activists and governments in general from supporting the burgeoning industry. Asian giant China has completely banned cryptocurrency mining in regions of Inner Mongolia and mainland China due to rising energy demands as the country scrambles to meet its climate change goals. This happened thanks to the PoW algorithm based on Bitcoin and Ethereum.
This has been one of the most pressing issues with Ethereum's consensus mechanism. The system consumed a lot of computing power. Second, the way it worked meant transactions were often much slower than they could have been.
To solve these problems and increase network scalability, Ethereum had to move to something called Proof-of-Stake (PoS). This included selecting people to add to the blockchain based on how much ether they had. In order to transition to the new consensus mechanism, Ethereum had to go through a series of upgrades commonly referred to as "merging". The merger was not a hard fork from Ethereum, but a one-off event.
While the mergers were highly anticipated, blockchain miners had a downside. Since they were no longer needed, they could no longer generate any additional income. As a result, plans were made to create a version of ETH based on the original pre-merger blockchain. Perhaps the most popular variant of Ethereum PoW is the Ethereum Proof-of-Work, also known as Ethereum PoW.
EthereumPoW: Roughly
The new blockchain was developed by a group of anonymous miners to allow people to add blocks to the blockchain in a traditional way, using the same features as the original Ethereum. The mainnet of the new Ethereum fork was launched after The Merge. The update resulted in a hard fork that split the Ethereum chain in two: the new ETH 2.0 with PoS and the old ETH (now ETHW) with the PoW model.
After Ethereum switched to PoS after the merger, Ethereum's energy consumption dropped by 99%. Vitalik Buterin, Ethereum's lead developer, commented on the milestone, saying that the transition will solve virtually 0.2% of the world's energy problems.
However, the new blockchain ETHW, which follows the old principles of Ethereum, is only gaining popularity.
The ETHW token is used to pay miners and can be bought, sold and traded on crypto exchanges. Since the project had little information about the new token, it was very difficult for crypto enthusiasts to decide whether to consider it as an investment or a mining opportunity.
The new token was accepted by the Binance pool, which is a significant achievement. The largest cryptocurrency exchange in the world has definitely increased the presence of ETHW through distribution.
ETHW. The first steps
EthereumPOW is not the largest POW project under the Ethereum name. When Ethereum security was breached in 2016, he shut down his old project, moved it to another network, and ran the old Ethereum as Ethereum Classic. This makes EthereumPOW the second largest EthereumPoW.
Although ETHW was officially launched on September 15, 2022 when it launched its mainnet, there is a price history that started a month ago. CoinMarketCap hit an all-time high of $141.36 and fell to a post-merger low of $4.22 on Sept. 19. ETHW has seen a significant price recovery despite the fact that its ETHPow blockchain network was hit by a smart contract hack on September 27th. , in the first week after launch.
At the time, there were 120,524,064 ETHW in circulation with a peak volume of 122,444,717. If true, the coin would have a market cap of around $705.5 million, making it the 59th largest cryptocurrency. Not bad for a derivative.
ETHW: price forecast
In general, crypto experts predict that the new token will be very successful and its value will increase over time. For example, DigitalCoinPrice estimates that the token will cost an average of $224.17 in 2031. Some cryptocurrency sites like CoinCodex are even more optimistic, stating that “Based on our forecast for growth in the technology sector, the estimated price of ETHW will range from $161.70 to $841.47.
While some experts, like Chandler Guo, author of Ethereum's recent hard fork, expect the token's value to increase 100x within a decade, others remain skeptical.
They argue that while there may be a viable market for a smart contract blockchain that uses post-fusion mining, ETHPoW is more of a quick cash grab.
As evidenced by the short lifespan of the asset, given the recent release of ETHPoW to ETH holders, ETHPoW is likely to retain some value, at least initially. However, bots can drain all ETHPoW liquidity pools and pull all the value out of the ecosystem. Only time will tell if ETHW will become a successful fork like Ethereum Classic or not.
How and where to buy ETHW?
Buying EthereumPoW with StealthEX is very simple. You can do this privately and without registering on the service. Our crypto collection includes over 600 different coins and you can make wallet-to-wallet transfers instantly and seamlessly.
Just go to StealthEX and follow these simple steps.
- Select a pair and an amount to trade. For example, exchange BTC for ETHW.
- Click the Start Trade button.
- Enter the address of the recipient to whom the data will be forwarded.
- Transfer your cryptocurrency to an exchange.
- Get ETHW coins.
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Remember to do your own research before buying any cryptocurrency. The views and opinions expressed in this article are solely those of the author.
Tags crypto world Ethereum Ethereum PoW ETHW PoWPost Ethereum PoW (ETHW). A new Ether derivative first appeared on StealthEX.