Ethereum is moving to a proof of stake blockchain. This means that mining activity on Ethereum Classic, an ETH alternative, has reached an all time high. As Ethereum’s long-awaited upgrade approaches miners seem to be switching to Ethereum Classic.
Ethereum will end mining tonight on its network following the merge. This transitions the network into proof-of-stake. The “original” Ethereum chain, Ethereum Classic, has reached an all-time high of 65.49 Terahashes per Second (TH/s), according to data from 2miners.com.
The hash rate is the computational power required to mine cryptocurrency. Assets such as Bitcoin and Ethereum Classic use a Proof-of-Work system to process transactions.
But Ethereum, the second-largest cryptocurrency by market cap, today is making its long-awaited move to a proof-of-stake blockchain–replacing miners with validators, people who “stake” the cryptocurrency to keep the network secure and running.
The ethereum merge will make it 99% more efficient
According to the Ethereum Foundation, the upgrade will make the network ” 99 percent more efficient.” Anyone can participate in the staking process. They can either stake 32 ETH or join a pool via an exchange such as Coinbase.
However, the move leaves former Ethereum miners without potentially no to do . Many will likely instead mine Ethereum Classic or other compatible coins, like Ravencoin.
What is ethereum classic?
Ethereum Classic is a fork of Ethereum. In 2016, Ethereum users had disagreements about where to go after the DAO hack. $55 million in crypto was stolen because of a flaw in the code.
Developers eventually parted ways, and two new blockchains were built: Ethereum Classic and Ethereum.
ETC isn’t as well-known as Ethereum. However, developers use its blockchain to create applications. To continue using their hardware and stay profitable, miners will have to switch to Ethereum Classic or other coins.
Ethereum Classic is the eighth-largest cryptocurrency currently, accounting for more than $5 billion in market capital.