The Ethereum blockchain switched from Proof of Work (PoW) to a Proof of Stake (PoS) consensus mechanism on September 15, 2022. Along with the move, ETHPoW, a clear proof of work (basically pre-merger legacy) provided the Ethereum blockchain. as of Ethereum integration, it is live. This forked version of Ethereum aims to maintain the proof-of-work mining process for ETH miners.
Any miner is allowed to add a block to the Proof of Work network on the explicit condition that the first valid block published is the correct block. In fact, more than one legitimate block is occasionally detected by the network due to the delay in data propagation, leading to the creation of many blockchain branches called forks.
This article will discuss the Ethereum Proof of Work fork, the history of PoW Ethereum, and the differences between ETH and ETHW.
What is ETHPoW (ETHW)?
Ethereum’s long-awaited “merger” upgrade has lowered miners’ demands. It has replaced them with validators that participate in Ether (ETH) instead of using expensive and energy-intensive hardware to secure the network, greatly increasing the energy efficiency of the cryptocurrency. However, before the merger, a hard fork of the Ethereum network, called ETHW, was created that still used the PoW consensus mechanism, leading to a victory for ETH miners.
But who is behind ETHW? Chinese miner Chandler Gu has gone against the PoS consensus approach and launched the PoW-based Ethereum blockchain. While the creation of the PoW Ethereum chain may be a victory for miners over stakeholders, ETHW users have experienced access issues.
The chain ID used by ETHPoW is 10001, but it was already in use by the Bitcoin Cash Test Network. As a result, users of the MetaMask crypto wallet have encountered issues such as the chain ID, which acts as an identifier, not being able to distinguish between two separate blockchains.
String IDs can be chosen at will because there is no central repository or registry, but pre-shared testing would have found the discrepancy, while the team behind ETHW ignored the problem. Despite this, crypto exchanges such as Binance and Coinbase have shown support for ETHW. For example, Binance announced the ETHW mining pool, indicating that it will undergo the same review process as other cryptocurrencies.
Related Topics: What is a Cryptocurrency Mining Pool?
How does PoW Ethereum (ETHW) work?
The first release of the Ethereum network (i.e. Ethereum Classic) was based on the Proof of Work consensus method. However, this version was too patchy to secure the network due to the DAO hack. EthereumFair and EthereumPOW are the other two hard forks of the original Ethereum blockchain that will continue to use Proof of Work mining.
Proof of work cryptocurrencies such as Bitcoin (BTC) are marketed as a type of trustless, censorship-resistant digital money that is created after a person or a small group of people solves a mathematical puzzle and proposes a new block. But to prevent a small group of miners from adopting rules that would weaken resistance to censorship, many non-complicit miners must process transactions.
Likewise, to prevent anyone from abusing the system, ETHW miners will also continue to solve arbitrary mathematical challenges to validate transactions and mine new tokens. In return, they will be rewarded with ETHW, the native asset of the ETHPoW chain.
How to Buy PoW Ethereum (ETHW)
Cryptocurrency exchanges like Crypto.com and exchanges like Coinbase and Binance are examples of a few places where ETHW supporters can buy Ethereum tokens for proof of work.
For example, Binance has officially launched the Ethereum ETHW mining service from Binance Pool which offers ETHW withdrawals for a limited time. However, please note that ETHW deposits are not possible. At Binance Convert, users can sell ETHW for BUSD and USDT.
The basic steps required to buy ETHW on your chosen platform include:
Create an account on your chosen platform/exchange and verify your identity.
Deposit money after successful identity verification.
Users can go to the trading section and buy ETHW after funding their account.
But why do people use PoW Ethereum? Proof of Stake critics prefer Proof of Work because they have already invested in expensive mining equipment and switching to a POS network will not bring them any revenue.
How is PoW Ethereum (ETHW) stored?
Hardware or software wallets can be used to store ETHW. Hardware wallets offer more security than software wallets as funds are stored offline using wallets such as Ledger Nano S wallets. Crypto owners with software wallets keep their private keys instead of letting them keep them on the exchange.