Ethereum PoW (ETHW), a forked network of Ethereum, announced yesterday its decision to dissolve its core team. Its existing servers will be temporarily transferred to OneDao for transitional maintenance until a long-term ecological partnership is confirmed.
(Table of Contents)
– Existing servers transferred to OneDao for maintenance
– ETHW price plummets
– What is ETHW?
– Why did Ethereum PoW undergo a hard fork?
Ethereum PoW (ETHW), a forked network of Ethereum, released a statement titled “ETHW Core Team Dissolution Announcement” on the evening of the 19th. It stated that after verifying the feasibility of ETHW operating independently without the support of a core team, the decision was made to dissolve the ETHW Core team.
In the statement, ETHW expressed the following consensus:
– Dissolve the ETHW Core team to achieve complete autonomy.
– Uphold Proof of Work (PoW) as the underlying consensus mechanism and maintain it in the long term.
– Embrace decentralized autonomy to make ETHW a permissionless public chain.
Additionally, ETHW mentioned that its existing servers will be temporarily transferred to OneDao for transitional maintenance until a long-term ecological partnership is confirmed.
Although embracing more decentralized autonomy is a positive development, the departure of the core team also implies that future development and upgrades for ETHW may become more challenging. Influenced by this information, ETHW rapidly declined after the news release, reaching $2.62 by the time of submission, experiencing a 7.5% drop in the past 24 hours.
Image Source: CoinGecko
What is ETHW?
Since its launch on July 30, 2015, Ethereum (ETH) has been using the Proof of Work (PoW) consensus mechanism to secure its network. The PoW mechanism involves solving complex mathematical problems to create new blockchain blocks. This process allows Ethereum nodes (distributed computers) to achieve consensus on transaction requests and prevent manipulation.
However, with the upcoming upgrade, “The Merge,” Ethereum will transition from PoW to Proof of Stake (PoS) mechanism on September 15, 2022.
Further reading:
ETHW Fork Aftermath: Market Cap Plummet, Miners Leaving… What Remains?
Why did Ethereum PoW undergo a hard fork?
The occurrence of the Ethereum PoW hard fork was due to some miners unwilling to give up the profitable PoW mechanism in exchange for the lower profits of PoS. According to Arcane Research, Ethereum mining revenue reached $18 billion in 2021, slightly higher than Bitcoin’s $17 billion return.
In the PoW network, miners are responsible for verifying transactions and competing with each other to solve mathematical problems. On the other hand, in a PoS network, complex computational problems are not required, and instead, investors stake their tokens to secure the network without the need for mining equipment.
Although PoS can reduce energy consumption by 99.9% and eliminate the high entry barrier of mining for stakers, there are still advantages to PoW in terms of security and decentralization.
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Ethereum forked network
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