Ethereum angst as Ethereum’s transition to proof-of-stake approaches a prominent Ethereum miner is calling on fellow miners to fork crypto’s largest smart contract blockchain what could this mean for eth?
A prominent Ethereum miner is looking to fork the Ethereum blockchain when it transitions from proof of work to proof of stake.
Obviously, this transition will put Ethereum miners out of business, hence why some of them have been critical of the merge in recent months.
In the case of this Ethereum miner, however, the threat of an Ethereum fork seems to hold some water. That’s because Chandler Guo was involved in forking Ethereum back in 2016 to create the Ethereum classic. Whose etc coin has recently been rallying on the assumption that the Ethereum classic chain will receive Ethereum miners.
Well, it looks like this is becoming less and less likely as chandler has been explicit in his intentions to create a new fork of Ethereum and boldly proclaimed on Twitter that quote I forked Ethereum once I will fork it again.
i fork ethereum once，i will fork it again！ https://t.co/3DdlZ3zMz9— Chandler Guo (@ChandlerGuo) July 27, 2022
If you need more evidence that this is no joke consider that three cryptocurrency exchanges have directly or indirectly signaled their support for Ethereum’s proof-of-work fork so far including Huobi global. Which is one of the largest exchanges out there now it’s not entirely clear why chandler wants to fork Ethereum.
Although he claims it’s because proof of work is better Ethereum already has a proof-of-work-based version which is of course Ethereum classic. Ethereum creator Vitalik Buterin has even encouraged disgruntled miners to move there. This suggests that the real reason why chandler wants to fork Ethereum is for quick cash something which Vitalik believes and something which chandler’s own tweets seem to support.
Now to clarify if Ethereum forks and you hold eth in your wallet you will get a copy of that eth on the new chain. This prospect of easy profit combined with the apparent support of some grade exchanges might have actually contributed to eth’s impressive rally last week. I suspect this has more to do with the last Ethereum merge test net which should be happening at any moment now.
This begs the question of what an Ethereum fork could mean for actual eth and I suppose I just answered that question. It will increase the volatility of eth’s price as the merge approaches presumably to the upside as people accumulate eth to get free eth on the new blockchain.
Beyond that, it’s anyone’s guess and Vitalik’s guess is that the fork which receives the support of centralized stablecoin issuers will be the most successful because stablecoins are how most of the money comes in and out of crypto. There are also strong demand drivers for smart contract cryptos like Ethereum. Now as far as I know none of the stablecoin issuers have announced support for any upcoming Ethereum forks though chandler implied in a recent retweet that tether might be the first.
Even so, the tether will likely keep most of its liquidity on more secure smart contract cryptocurrencies like Ethereum. Now you can learn more about what Ethereum has been up to and what the merge could mean for eth in our recent articles.