After the long-awaited introduction of The Merge, the price of the new cryptocurrency Ethereum Pow dropped by 65 per cent upon its debut. Even if cryptocurrency mining has increased in recent days, does ETHW still have a chance?
What is ETHPoW exactly?
EthereumPoW is a branch (a fork) of the well-known Proof-of-Work (or proof of work in French) implementation of Ethereum. Proof-of-work is a frequently used consensus technique for blockchains. However, despite its high level of security, it faces issues with energy consumption and administration.
This system relies on mining to generate new blocks and verify the validity of transactions. As you are likely aware, Ethereum PoW is essentially a cryptocurrency that operates identically to the original Ethereum system.
Following the merging of The Merge, EthereumPoW was created but seems to be experiencing technical difficulties. The developers of EthereumPoW have published a guide for connecting your wallet to ETH PoW. However, some users have reported experiencing difficulty integrating their metamask wallet to ETH PoW.
The issue would be caused by a flawed ID. This is comparable to the Bitcoin Cash testnet. User @cascadia coin reported the following on the networks:
The network with channel ID 10001 may use a different currency symbol (BCHT) than the one you entered. Please verify before proceeding”
Consensys, a blockchain business closely affiliated with Ethereum, has offered a technological answer to this ID problem.
The channel’s channel ID is a node-managed attribute. It is employed as a safeguard against transaction rejection. Adjusting the Chain ID modifies one of the parameters of a transaction, namely the V parameter. The value of the v argument is 2*ChainID + 35/36. The chain ID for the Ethereum mainnet, which is 1, is 1. This implies that all transactions have a value of 37 or 38 inches.
Despite Ethereum PoW’s present difficulties, crypto exchange platforms (ByBit, FTX, Kraken) accept it.
As this graph demonstrates, the value of Ethereum PoW plummeted due to these technological issues. The current ETHPoW price is $12.88, and the 24-hour trading volume is $152,028,766. ETPoW has down 55.01% during the last twenty-four hours.
A decrease in hashrate
Since its inception, the Hashrate of Ethereum PoW has decreased. In fact, it surpassed 80 TH/s at 62.38 TH/s when this article was published. In the past several hours, though, there has been a tiny uptick.
The miners seem to have picked their side, as the Ethereum Classic hashrate on September 16 was 234.56 TH/s and peaked at 310.5 TH/s the day before. This page describes the current status of Ethereum Classic and is a good resource for more information on this topic.
The Chief Investment Officer of Arcane Assets, Eric Wall, said that ETHPoW miners can no longer mine the chain at the current ETHW pricing. He added:
Daily incentives are 13100 ETH, or $354k, as opposed to $20 million. There is no possibility that miners will continue to mine the ETHPoW chain regardless of how the difficulty is adjusted. There are insufficient incentives in the system to pay the power bill.
Others choose to switch to RavenCoin, whose hashrate has almost quadrupled in only two days. Today, it has increased from 6.84 TH/s on September 14 to 17.85 TH/s.
Therefore, miners are searching for new cryptocurrencies to fuel their machines, and it is quite probable that we will see further migrations in the coming days. Indeed, miners seek profitability, and Ethereum was among the most lucrative cryptocurrencies.