How do miners fork PowETH in the industry?
After several delays, it appears that Ethereum will finally start the merger process in September 2022. However, with the arrival of the merger, the voices and disputes of PoW ETH are also getting louder.
In this context, Guo Hongcai (Bao Erye), an early Bitcoin evangelist, established an Ethereum fork discussion group to advocate for Ethereum fork, and published the “Ethereum Fork Declaration” through his personal Youtube channel, advocating fork The PoWETH chain should not be issued, pre-mined, or modified, and the original chain should be maintained. Bao Erye said that there may be 6 or 7 forked coins in the future, and the exchange will choose the one with the largest consensus. The larger the exchange, the more cautious.
The forked chain of PoWETH has become more and more intense, causing widespread heated discussion in the community.
On August 5, Ethereum founder Vitalik Buterin said at the BUIDL Asia event that centralized Stablecoins such as USDT and USDC may be an important determinant of future hard forks. Vitalik Buterin added that in the next five to ten years, Ethereum could see more contentious hard forks, and centralized stablecoin issuers could become more influential decision makers.
Synthetix Network founder kaiynne commented: “Assuming miners fork to a PoW chain, we will get two versions of everything, but a lot of DeFi on this chain will be in a weird fringe state. It will continue to work in theory. But you would have powDAI backed by powETH. Assuming liquidation bots run that would be insane. Selling pressure on powETH will be massive as full liquidation begins. Everything will run out against USDT/usdc.”
Hal Press, founder of North Rock Digital, said: After the merger, Ethereum hard forked out of the PoW chain. All assets will follow the new chain, but miners can continue to maintain the old chain. However, there will be no airdrops or ERCs, and users will have 2 versions of ETH: PoSETH and PoWETH. PoSETH will become the standard, but exchanges may also list PoWETH. After the fork, there will be chaos on the PoW chain, as the gap between all assets and ETH will drop to 0, which will lead to a sea change in all DeFi on the PoW chain. However, this PoWETH may still have value on CEX.
Crypto KOL ryanb.eth analyzed that from a technical point of view, as long as a miner in the world does not update its client to support PoS, PoW forks will continue to “exist” by default. However, a program + database run by a small number of miners cannot form a new public chain. That’s just a useless, dead, private blockchain.
According to ryanb.eth, a public chain is an institution — a set of relationships, culture and consensus on top of programs and databases. Unlike ETC, PoW forks exist as public chains without justification or grassroots support. A PoW fork is just a culturally and historically interesting and unimportant program + database. Any public chain made from a PoW fork would be disruptive as it would drain energy + focus from the merged and merged eth, and more importantly, it would be entirely based on Ponzi interests looking to dump the forked generation currency. Not user-centric. No one in the Ethereum community wants a PoW fork to become the new public chain. Researchers, engineers, product managers, influencers, NFT artists/collectors, exchanges, protocols and stablecoins don’t want it. Nobody wants this stuff. Based on this, any attempt to fork PoW into a new public chain should be considered a social attack on Ethereum
Ethhub_io founder sassal.eth tweeted that this is the “ETH milkshake theory.” In the case of a PoW fork at the time of the merger, everyone sells their PoW tokens (at whatever price they can get) for PoW-ETH, and they transfer this PoW-ETH on any CEX with liquidity stored as real ETH. As a result, ETH will rise.
Based on stable currency considerations, in fact, two institutions including Tether have expressed support for ETH2.0.
On July 31, when Tether CTO Paolo Ardoino discussed on the social platform whether USDT would support the POW Ethereum fork chain after the merger of Ethereum, he said that we plan to support ETH2, and the support for the merged Ethereum 2.0 will be seamless. This has nothing to do with our preference for POW or POS, Stablecoin should act responsibly and avoid disruption to users.
On Aug. 4, Sam Kazemian, co-founder of the algorithmic stablecoin Frax Finance, proposed to support FRAX redemption only on PoSETH, not on any PoW alternative fork (PoWETH), after Ethereum switches from PoW to PoS.
As for whether the forked PowETH will become a ghost chain or a new public chain with consensus, ecology and competitiveness, we will wait and see.
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