1 minute read
- With Ethereum at 2.0 starting its phase 0 on the 1st of December next month, many people are excited about the future of the project.
- After numerous delays over there past few years, the network is finally getting ready to move forward to a proof of stake model.
With Ethereum at 2.0 starting its phase 0 on the 1st of December next month, many people are excited about the future of the project. After numerous delays over there past few years, the network is finally getting ready to move forward to a proof of stake model.
As a result of this, the network is going to leave behind the proof of work consensus algorithm and will result in many miners with very little options for the future.
The big reason for this is because their mining equipment will become useless in this new network and they will be forced to look into alternative cryptocurrencies or re-certify as Ethereum Stakers.
The consensus for Ethereum is currently on a proof of work system which is very similar to that of the leading cryptocurrencies.
With this in mind, the mining process is almost identical for Bitcoin and as many miners use their computer resources to earn a payoff for each block they manage to mine, they can reap the rewards for their work.
Another vital key difference between the two protocols is that bitcoin mining is nearly fully reliant on ASICs whereas the proof of work hashing algorithm for Ethereum is designed to favour GPU units which are much more accessible and cheaper for the mainstream audience.
The global business director of the cryptocurrency mining pool F2Pool, Thomas Heller has discussed this saying:
“At present, the profit of ETH mining is not high, and the management threshold and cost of GPU devices are higher than that of Asic devices. Compared with Asic devices, however, GPU devices are more flexible as in, you can switch to other coins with different algos.”
No matter what happens, the project is moving away from a mining aspect of its future. With phase 0 now confirmed to launch on the 1st of December, many people throughout the community are excited to see what it will bring to the table.
© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.