EthereumPoW (ETHW) Cryptocurrency Market Data and Information

What is EthereumPoW (ETHW)?

EthereumPoW (ETHW) emerged as a hard fork of the original Ethereum blockchain following “The Merge,” a pivotal event that transitioned Ethereum to a Proof-of-Stake (PoS) consensus mechanism. Prior to The Merge, Ethereum operated on a Proof-of-Work (PoW) system, which relied on miners to validate transactions and secure the network. As Ethereum shifted towards PoS, a segment of the community, primarily miners concerned about the obsolescence of their mining equipment, advocated for maintaining a PoW version of Ethereum. This led to the creation of EthereumPoW, spearheaded by Chandler Guo, a prominent China-based Ethereum miner, and a group of independent developers and miners forming ETHW Core.

The fundamental principle behind EthereumPoW is to preserve the PoW consensus mechanism, allowing miners to continue using their existing hardware to validate transactions and earn rewards. This decision was rooted in the belief that PoW provides a more decentralized and secure network compared to PoS. While Ethereum’s transition to PoS aimed to improve energy efficiency and scalability, proponents of EthereumPoW argue that it compromises decentralization and introduces new security risks. The snapshot for the fork was taken at the Merge block, specifically block number 15537393, ensuring that anyone holding ETH on the Ethereum blockchain before the fork received an equivalent amount of ETHW tokens on the new PoW chain. EthereumPoW represents a continuation of the Ethereum blockchain in its pre-Merge state, providing an alternative for those who prefer the PoW consensus mechanism.

How Does EthereumPoW Work?

EthereumPoW operates using the Proof-of-Work (PoW) consensus mechanism, similar to the pre-Merge Ethereum blockchain. In a PoW system, miners compete to solve complex cryptographic puzzles to validate transactions and add new blocks to the blockchain. The first miner to solve the puzzle is rewarded with ETHW tokens. This process requires significant computational power, which necessitates miners to invest in specialized hardware, such as GPUs or ASICs. The computational effort acts as a deterrent against malicious actors, making it costly to attack the network.

One of the primary goals of EthereumPoW Core was to minimize changes to the existing Ethereum codebase to ensure chain sustainability. As such, most parameters were kept the same as the original Ethereum. The EthereumPoW developers made the decision to disable the difficulty bomb, a mechanism designed to gradually increase the difficulty of mining, eventually making it unprofitable and forcing a transition to PoS. This was a crucial step in ensuring the viability of the PoW chain. Additionally, the EIP-1559 base fee, which was burned on the original Ethereum chain, is instead distributed to miners on EthereumPoW, incentivizing them to continue supporting the network.

EthereumPoW’s functionality largely mirrors that of the original Ethereum. Transactions are processed and recorded on the blockchain in a similar manner. Smart contracts that were deployed on Ethereum before The Merge are also compatible with EthereumPoW, allowing developers to migrate or replicate their applications on the new chain. The network aims to maintain compatibility with existing Ethereum tooling and infrastructure as much as possible. The network utilizes a DAG size that is 4G, ensuring that miners can continue to participate without requiring the latest hardware upgrades.

EthereumPoW Key Features and Technology

EthereumPoW boasts several key features and technological aspects that define its operation and differentiation from the PoS Ethereum chain. The most prominent feature is its adherence to the Proof-of-Work (PoW) consensus mechanism, which serves as the foundation for securing the network and validating transactions. Unlike the post-Merge Ethereum, EthereumPoW relies on miners who contribute computational power to solve cryptographic puzzles, ensuring the integrity and immutability of the blockchain.

Another key aspect of EthereumPoW is its commitment to maintaining compatibility with existing Ethereum tools and infrastructure. This means that smart contracts and decentralized applications (dApps) that were deployed on the pre-Merge Ethereum chain can be easily migrated or replicated on EthereumPoW. This compatibility reduces the barrier to entry for developers and users who wish to continue using the PoW-based chain. The chain ID for EthereumPoW is 10001.

The decision to disable the difficulty bomb, a feature designed to increase mining difficulty over time, is another important aspect of EthereumPoW. By disabling the difficulty bomb, the EthereumPoW developers aimed to ensure the long-term viability of the PoW chain. This allows miners to continue mining ETHW tokens without facing rapidly increasing difficulty levels that would eventually render mining unprofitable. The EIP-1559 base fee distribution to miners is another notable technological decision. This change provides miners with an additional source of revenue, incentivizing them to continue supporting the network and maintaining its security.

What is EthereumPoW Used For?

EthereumPoW serves several purposes within the cryptocurrency ecosystem. Primarily, it provides a continuation of the Ethereum blockchain for those who prefer the Proof-of-Work (PoW) consensus mechanism. This caters to miners who have invested in mining hardware and wish to continue earning rewards for their computational contributions. It also appeals to users who believe that PoW offers a more decentralized and secure alternative to Proof-of-Stake (PoS).

EthereumPoW can also be used for deploying and executing smart contracts and decentralized applications (dApps). Since it maintains compatibility with the original Ethereum codebase, developers can migrate or replicate their existing applications on the EthereumPoW chain. This allows users to continue using their favorite dApps and participate in the Ethereum ecosystem on a PoW-based network.

Furthermore, ETHW, the native token of the EthereumPoW chain, can be used for transactions, payments, and as a store of value. Users can send and receive ETHW to transact with others on the network. It’s used to pay for transaction fees on the network. Additionally, some investors may choose to hold ETHW as part of their cryptocurrency portfolio, speculating on its future value. Its utility depends on the adoption and development of the network and its ecosystem.

How Do You Buy EthereumPoW?

Purchasing EthereumPoW (ETHW) involves a similar process to buying other cryptocurrencies, although its availability may vary across different exchanges. Here’s a general outline of the steps involved:

1. **Choose a Cryptocurrency Exchange:** The first step is to select a cryptocurrency exchange that lists ETHW. Popular exchanges where ETHW may be available include:
* OKX
* Gate.io
* MEXC
* Huobi
Before choosing an exchange, consider factors such as trading fees, security measures, user interface, and the availability of other cryptocurrencies you may want to trade.

2. **Create an Account:** Once you’ve selected an exchange, you’ll need to create an account. This typically involves providing your email address, creating a strong password, and completing a Know Your Customer (KYC) verification process. KYC verification usually requires submitting personal information, such as your name, address, and a copy of your government-issued ID.

3. **Deposit Funds:** After your account is verified, you’ll need to deposit funds to your exchange account. Most exchanges accept deposits in fiat currencies like USD, EUR, or GBP, as well as other cryptocurrencies like Bitcoin (BTC) or Ether (ETH). The available deposit methods will vary depending on the exchange and your location. Common deposit methods include bank transfers, credit/debit cards, and cryptocurrency transfers.

4. **Purchase ETHW:** Once your funds have been deposited, you can purchase ETHW. Navigate to the ETHW trading pair (e.g., ETHW/USDT, ETHW/BTC) and place an order to buy ETHW. You can choose between different order types, such as market orders (which execute immediately at the current market price) or limit orders (which allow you to specify the price at which you want to buy ETHW).

5. **Withdraw ETHW (Optional):** After purchasing ETHW, you may want to withdraw it from the exchange to a personal wallet for added security. Refer to the “How Do You Store EthereumPoW?” section for information on ETHW wallets.

How Do You Store EthereumPoW?

Storing EthereumPoW (ETHW) securely is crucial to protecting your investment. You have several options for storing ETHW, each with its own advantages and disadvantages:

* **Hardware Wallets:** Hardware wallets are physical devices that store your private keys offline, providing the highest level of security. Popular hardware wallet options include:
* Ledger Nano S/X
* Trezor Model T
* SafePal S1
These wallets support ETHW through Metamask by adding the custom RPC network.

* **Software Wallets:** Software wallets are applications that you can install on your computer or smartphone. They are more convenient than hardware wallets but offer a lower level of security. Popular software wallet options that support custom networks include:
* MetaMask (browser extension and mobile app)
* Trust Wallet (mobile app)
* Coinomi (desktop and mobile app)

* **Exchange Wallets:** While it is possible to store ETHW on the exchange where you purchased it, this is generally not recommended for long-term storage. Exchanges are vulnerable to hacking and theft, and you could lose your funds if the exchange is compromised.

When choosing a wallet, consider factors such as security, convenience, and compatibility with your operating system and devices. For large amounts of ETHW, a hardware wallet is the most secure option. For smaller amounts or for frequent transactions, a software wallet may be more convenient.

To store your ETHW in a wallet, you will need to create a wallet and then transfer your ETHW from the exchange to your wallet address. Be sure to keep your private keys or seed phrase safe and secure, as these are needed to access your ETHW.

Future Outlook and Analysis for EthereumPoW

The future of EthereumPoW (ETHW) is uncertain and depends on various factors, including community support, developer activity, and the overall market sentiment towards Proof-of-Work (PoW) cryptocurrencies. One of the primary challenges facing EthereumPoW is its competition with the Proof-of-Stake (PoS) Ethereum chain. Ethereum’s transition to PoS aimed to address scalability and energy efficiency issues, and it has garnered significant support from the Ethereum community. EthereumPoW will need to demonstrate its own unique value proposition and advantages to attract users and developers.

The success of EthereumPoW will also depend on its ability to foster a vibrant and active ecosystem. This includes attracting developers to build decentralized applications (dApps) on the EthereumPoW chain, as well as attracting users to use those dApps. If EthereumPoW can successfully build a thriving ecosystem, it could potentially carve out a niche for itself within the broader cryptocurrency market.

However, there are also several risks and challenges that EthereumPoW faces. One major risk is the potential for a lack of developer support. Many developers have already migrated their dApps to the PoS Ethereum chain, and it may be difficult to attract them back to EthereumPoW. Another risk is the potential for network congestion and high transaction fees. The PoW consensus mechanism is inherently less scalable than PoS, and EthereumPoW may experience congestion issues as the network grows.

Overall, the future of EthereumPoW is uncertain. While it has the potential to carve out a niche for itself within the cryptocurrency market, it faces several challenges and risks. Its success will depend on its ability to attract community support, foster a vibrant ecosystem, and address scalability and security concerns.

References

• CoinGecko
• CoinDesk