Looking to invest in Ethereum Proof of Work (ETHW)? You can buy ETHW on Crypto.com
Following the merger of Ethereum with Proof of Stake (PoS), the Ethereum network was split into several separate chains that still operate with Proof of Work (PoW) consensus. The two notable ones are EthereumPoW and EthereumFair. The networks appear to be becoming options for Ethereum miners who were potentially out of work after the merger.
Introducing PoW Ethereum
Until recently, Ethereum was a PoW network where miners used their computing power to validate the network. The big problem with this system is the massive amount of energy it used. This is one of the main talking points for those who are anti-crypto and for crypto enthusiasts who are worried about climate change.
The merger gives Ethereum an edge over Bitcoin, which operates on a PoW consensus method. Bitcoin mining is more energy intensive than some entire countries. As potential crypto regulations loom, avoiding power-based laws is helpful for Ethereum. While Bitcoin maximalists believe in their form of immutable currency, Ethereum supporters seem to be growing.
Ethereum has more use cases than Bitcoin. As the Ethereum ecosystem grows, some believe it could overtake Bitcoin in terms of market capitalization and have even called this event “The Flippening”. Merger could be a big step in this direction as it attracts more developers, becomes more energy efficient and paves the way for sharing.
While PoS reduces power consumption, many still criticize it, claiming that it is not as decentralized as PoW. Additionally, the loss of revenue for crypto mining companies and individuals means that Ethereum PoW forks have emerged, providing a new network for miners to participate in.
Why do people use Ethereum PoW?
The main reason people use PoW networks on Ethereum is to try to make a quick buck. Most Ethereum miners will likely transfer operations to Bitcoin, Ethereum Classic, or other PoW blockchains that have proven relevant over a longer period of time.
PoW Ethereum History
Ethereum was founded with PoW consensus. While the network had long planned to merge into an all-PoS consensus, it only became a reality on September 15, 2022. Ethereum hard forks including Ethereum Classic, EthereumPoW, and EthereumFair will continue to use a mechanism PoW consensus.
The oldest of the three Ethereum PoW networks is Ethereum Classic. The Ethereum Classic network is actually the original Ethereum network from which Ethereum was hard forked. The reason for the hard fork was that the network was funded by The DAO, which operated on the channel. The DAO was hacked and slowly drained of its money; however, hard forking the network returned the funds to the owners and fixed the network bug. This fork has lost community interest over time, perhaps providing a glimpse into the future of ETHW.
Where to Buy Ethereum PoW
Few major trading platforms support ETHW. However, Crypto.com has ETHW available for trading. Much more popular is Ethereum Classic, which is not in the same category as the new Ethereum forks of The Merge but is a PoS network. Despite its lack of usefulness, Ethereum Classic still has a viable community and its market capitalization is around $1 billion.
If you are looking for exposure to the latest coins, it is best to have a non-custodial wallet like MetaMask. With it, you can explore decentralized exchanges and trade coins before they are available on centralized funding (CeFi) trading platforms.
Crypto.com strives to make cryptocurrency a part of everyday life by offering a full suite of services to crypto users. The company offers a Crypto.com App, Exchange, Visa Card, DeFi Exchange, DeFi Wallet, DeFi Earn, Crypto.com Price, Staking, Crypto Lending and many other services. However, what really sets them apart is the combination of extremely low fees and incredibly generous rewards programs for their users.
- Traders who want access to a secure, low-cost cryptocurrency exchange
- Passive investors who want to earn interest on their balance without frequent trading
- Mobile investors who prefer to manage all their crypto needs through their phone or tablet
- Low fees
- High security
- A one-stop-shop for all your crypto needs (wallet, trading, spending, etc.)
- Many ways to earn interest, rewards and cashback
- Low confidentiality
- Customer service response time could be improved
PoW Ethereum Blockchain vs other Blockchains
The best blockchain in the world, Bitcoin, runs on a PoW network. Despite this, the growing sentiment of many industry players confirms the superiority of PoS, which more and more blockchains are opting for. While Ethereum PoW networks use the same consensus mechanism as Bitcoin, it is starting to go out of style. It is possible that Bitcoin is the only PoW network that retains its long-term relevance.
How to Store Ethereum PoW Safely
The best way to store PoW Ethereum or any cryptocurrency is through a hardware wallet. While software wallets help you connect to a decentralized exchange and other decentralized applications (dApps), hardware wallets help you store your funds offline and safe. The most popular hardware wallet is Ledger. The flagship, Ledger Nano S, has become the industry standard for cold storage wallets.
securely through the Ledger Hardware Wallet website
Launched in 2014, Ledger has evolved into a rapidly growing company developing infrastructure and security solutions for cryptocurrencies as well as blockchain applications for businesses and individuals. Born in Paris, the company has since grown to over 130 employees in France and San Francisco.
With 1,500,000 Ledger wallets already sold in 165 countries, the company aims to secure the disruptive new class of crypto assets. Ledger has developed a distinctive operating system called BOLOS, which it integrates with a secure chip for its line of wallets. So far, Ledger is proud to be the only market player to provide this technology.
- ERC-20 Tokens
- All experience levels
- Easy to install and use
- Supports over 1,500 different digital resources
- Long battery life
- Bluetooth Connectivity Features
Will Ethereum PoW remain relevant?
As the crypto continues to mature, PoW Ethereum is unlikely to remain relevant. Most experts believe that PoS is a superior consensus method. PoW Ethereum probably isn’t worth the time.