Over the past year, Ether (ETH) has risen so much in value that it has clearly outperformed Bitcoin (BTC) in terms of returns. The income from Ethereum eventually made mining on the network profitable. This seems to have led to more miners, which increased the hash speed of the network.
The Ethereum hash rate reached a new high, approaching an all-time high of 1.11 PH / s, according to data from Glassnodes on 27 January. The previous ATH was previously reached on January 13 when the price of ETH fell from $ 4460 to $ 3160.
Source: glass knots
As the hash speed increases, it indicates that more nodes are joining the network and the network is becoming more decentralized. As a result, this increase helps to increase the security of the blockchain. However, if the hash speed is too low, it can be harmful to the network because it has fewer nodes, which slows down transactions and reduces security.
In December 2021, participants in the Ethereum network implemented the Arrow Glacier update, which led to a move to confirm stock consensus. It also means that Ethereum mining has a long way to go before it is shut down. Before you can access ETH2, a transition from PoW to PoS, called a merger, is required. At this point, the “hard bomb” will explode, essentially shutting down ETH mining and throwing the network into an “ice age” that will continue until the switch is complete.
After switching to Proof of Stake, ETH will not be recovered; Instead, transactions will be verified by betting on private nodes.
At this time, the hash speed of the network has exceeded one petahash. This figure corresponds to approximately 1,000 TH / s and indicates that the network’s hash rate has increased by more than 66,000% since March 2016, when the network started recording.
Related: Bitcoin hash speed jumps to NOTE when Jack Dorsey confirms the blockchain system
As Cointelegraph reported, the Ethereum Foundation has criticized the Eth2 brand, saying it does not adequately reflect what happened to the network during the campaign round. According to the announcement, “ETH2” and the terminology used to distinguish between the Proof of Stake chain and the Proof of Work chain may be phased out in the near future.