Who Wants to Be a Millionaire ?  The gap is widening with Ethereum miners

Congestion is good for the income of Ethereum miners. For its users, however, it is a thorn in the side. Ethereum developers have chosen their side and the fees will go down.

Would there be danger in the Ethereum home? Congestion is nothing new. But users and businesses’ dissatisfaction with blockchain gas costs has escalated in recent weeks.

To the point of discouraging investors from using Ethereum for their transactions on DeFi protocols? Over one month, the number of active Ethereum wallets fell by 40%. Several initiatives are however underway to provide a lasting solution.

The marriage of ETH 1 and advanced ETH 2.0

But these are far from enthusiastic miners, undoubtedly the first beneficiaries of this situation. The Ethereum developers are nevertheless determined to accelerate the transition to ETH 2.0.

Their priority is therefore to switch as quickly as possible from the consensus of Proof of Work to that of Proof of Stake. Currently, two networks coexist in parallel, Eth 1.0 in PoW, and Eth 2 (at least the Beacon chain) in PoS.

The developers’ ambition is therefore to connect the two networks as soon as possible. On March 11, Mikhail Kalinin published the specifications of this future merger between the two generations of Ethereum.

And the heart of this transition will therefore be the transition to Proof of Stake. However, in this model, no more rewards for minors based on the computing power provided – as on Bitcoin. With the PoS, the “minors”, or rather validators, are remunerated according to the amount ofETH under sequestration.

Proof of Stake and 1559 stir up the discontent of miners

The transition is therefore not trivial for the current Ethereum miners. Especially since this is not the only evolution to come on the blockchain likely to hit them on the wallet. An imminent update (July) must be implemented on the network.

Proposal 1559 aims to replace existing charges with a fixed price and a combustion mechanism. However, according to Cointelegraph, this change could result in a drop in the incomes of minors of up to 50%.

The revolt is therefore roaring on the side of these actors. The most vehement calls for a ” show of force On April 1. In what form ? By redirecting their hash power for 51 hours to the Ethermine mining pool, opposed to 1559.

Ethereum developers do not overlook this threat. In February, the co-creator of the blockchain, Vitalik Buterin, declared on a Chinese social network that a response to a 51% attack was being prepared. How? ‘Or’ What ? By further accelerating the switch to PoS.

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here