Different Crypto Companies Have Planned PoW Ethereum Forks
As ideas surrounding the probable path of a split abound, the Ethereum merging generates groups within the community.
One group, led by a Chinese miner, suggests a split to retain the proof-of-work consensus process. A fork is a significant software update to a blockchain network that renders earlier transactions or transaction blocks invalid or vice versa.
The merging, scheduled for September or October of this year, would replace the energy-intensive proof-of-work with proof-of-stake, reducing Ethereum’s energy footprint by 99 percent, according to some estimates.
The hedge firm Galois Capital expected a split, and its founder and CEO, Kevin Zhou, forecasted the demise of the TerraUSD stablecoin.
Hongcai Guo, a semi-retired Chinese miner leading EthereumPOW, has received requests from Chinese firms to begin work on the split. Guo has said that individuals will get free money when the fork occurs. Approximately sixty people are working on the break to remove the so-called difficulty bomb from the current Ethereum code.
The difficulty bomb is intended to make mining Ethereum almost impossible as the switch approaches. In early June, Ethereum engineers announced a postponement of the bomb.
Analysts advise exercising caution. According to them, a fork is often hampered by a lack of application developer participation and users.
A manager at the analytics company Messari asserts that efforts to date have been at best myopic, focused only on a hypothetical new coin without contemplating how the new network would be sustained in the long term.
However, Ethereum co-founder Vitalik Buterin said on Saturday that he does not anticipate forks seriously impacting the Ethereum network.