Setting the Stage for Change
After the monumental Merge, as Ethereum transitioned from proof-of-work (PoW) to proof-of-stake (PoS), the DeFi community expected fireworks. Instead, we got a metaphorical shrug and a lot of finger-crossing. How does one keep the party going when the music changes dramatically? Let’s evaluate the unfolding drama post-Merge, starring EthereumPoW and the long-standing Ethereum Classic (ETC).
EthereumPoW: Not Quite the Blockbuster
First off, let’s talk about EthereumPoW, which came bursting onto the scene like that one awkward relative at a family reunion. Users had trouble accessing the network right out of the gate. A surprise hack was the culprit, but they say all’s well that ends well—or at least somewhat better. Despite some blockchain exchanges beginning to provide their users with on-chain data, EthereumPoW hasn’t exactly captivated the market. Its value has plummeted from a high of $137 to a not-so-stable $5.87. Ouch!
Ethereum Classic: The Comeback Kid?
Enter Ethereum Classic (ETC), waving its six-year history like a flag. Originating after a fork in 2016 resulting from one of the biggest philosophical debates in the Ethereum community, ETC could just be the dark horse in this race. Sebastian Nill, COO of AETERNAM, suggests that it’s becoming increasingly appealing to miners. His reasoning? Why buy Ether when you can mine it for yourself? In his words:
“The possibility of a hard fork has always been there. People are always going to prefer to be able to mine Ether rather than having to buy it.”
The Pragmatics of Network Choices
In the grand realm of crypto, practicality reigns supreme. Ethereum Classic seems to be positioned as the sensible alternative for PoW supporters. This is mainly because it runs on a PoW consensus protocol, letting miners flex their digital muscles without having to embrace all that branding fuss that comes with newer technologies. Nill further elaborates:
“Ethereum Classic is going to be just as effective as Ethereum was for miners.”
Who wouldn’t want to keep mining without feeling the need to retool their operations for something new?
User Experience: A Double-Edged Sword
For the users clutching their EthereumPoW (or whatever asset they might have ended up with post-Merge), the trading journey feels akin to climbing Mount Everest without oxygen. Major exchanges may alleviate some of the pain, but the plummeting asset values are a reality check. And let’s not forget regulatory scrutiny—Chairman Gary Gensler of the SEC recently chimed in on the potential for staked assets being classified as securities. Isn’t that just a delightful little cherry on top of our blockchain sundae?
No Cuts, No Kidding
As the Ethereum network embraces its PoS model for energy efficiency, the high seas of transaction fees rage on. The first NFT minted post-Merge came with a jaw-dropping gas fee of over $60,000; yes, you read that right! Matt Weller from City Index reminds us that:
“From a user perspective, you want something that is cheap, fast, and reliable.”
The promise of lower fees and faster transactions floats on the horizon, with advocates reassuring us that Ethereum is scaling without taking shortcuts, thanks to layer-2 networks and rollups. Maybe there’s hope yet!
