The Ethereum cryptocurrency has been in the mining market for ages now. Its success story is not hidden from any miner or investor. But in the recent 7 to 8 years time time with the introduction of many other cryptocurrencies the industry has expanded but at the same time has made it more complex and interact with each other by announcing more new and advanced technologies on daily basis. Giving tough competition. But with the recent development of this billion-dollar industry, Ethereum It has not lost its ‘reputation and the trust it has built between its’ investors and the miners engaged in its mining. It has an ever-evolving potential that engages its customers and remains the center of attraction.
during crypto mining Scuttle, miners usually mint GPU or ASIC machines. The profit rate was around 25h/s, which I believe was a decent profit. But then with the development in technology, miners got hit by the Sputnik moment and switched their machines and moved from GPU or ASIC mining to Proof of Stake or Masternodes. Although Ethereum has abandoned its ‘long-trusted proof-of-work mining’, it still maintains its position in the market.
Just as a rising wave lifts all the boats, so does this change. Unlike PoW, in which mathematical calculations had to be solved to secure any transaction, the PoS miner can validate block transactions based on how many coins he has. This gives miners more mining power than before and therefore makes Ethereum mining more profitable.
Let’s look in more detail at how the Ethereum blockchain has been affected by PoS.
Not only does POS save you from the impact of solving heavy mathematical calculations but it also uses economic incentives to hide network security. The coins are at stake for the network and the network validators validate it. And even in the event that a validator attempts to fake a transaction or alter it in any way, they will immediately lose the coins at stake. This has made the chances and potential of miners to attack the network almost negligible.
It also consumed a heavy power supply to solve those mathematical calculations when using the POW algorithm, which in turn used a large expanse of power. This increased the total expenditure. Thus a large part of the profit earned by the miners was going into operating these heavy machinery and not inside their pockets, which was the only reason why they started mining anyway. But not a single problem went unnoticed by the network developers and came up with the concept of POS with no concern of high usage of power supply. And with the development of POS they hit the sweet spot. However this obliged the miners to mine only those coins for which they have been inherited. This means, theoretically, if a miner has 5 percent of the available coins, he can only mine those 5 percent of the coins. This makes the mining experience more and more authentic as well as religious.
Ethereum Miners- It’s Time to Pull Your Socks
As POS works on the concept that POW is independent of the use of blockchain network and makes mining hardware and software non-essential. It could end the traditional ethereum mining on the blockchain. This would make the whole scenario difficult for the miners. They have to move their hardware to another blockchain network and submerge that blockchain.
In the POS world, miners can more accurately be called validators. There the numbers will certainly drop to a significant extent and reward large organizations that have large amounts of coins at stake in the PoS powered blockchain network.
So the big picture is that there is no more mining in the Ethereum blockchain, but even then if miners want to make some fortune out of it, they have to start collecting coins on Ethereum’s PoS network. In fact, this is a good news for people living in areas that have either high electricity rates or intermittent sources of electricity. Since tokenizing on this network is self-governing and does not require CPU and GPU, giving more power to those who do not have the resources to manage these heavy machinery. The people in the areas where there is no subsidized electricity will benefit the most. In fact, it has brought an era of revolution in Ethereum mining.
Another essential feature of POS is that no one will be solely responsible for any drop in the value of the Ethereum price and no one can pin down the reason for the drop even on their own. This means that any drop or rise in price will be distributed proportionally to whatever is in the network. With a common knot of profit there will be a kind of mutual relationship between the interconnected validators directly or indirectly and your performance also depends on the performance of the other validators and not just yours.
How is POS similar to the concept of consensus?
If we go to the literal meaning, consensus means giving equal importance to all and considering each one while taking any decision. POS also works on the principle of consensus. For a better understanding you can associate it with birthday party status. One cuts a cake only when his entire friend comes to the party and not just in the presence of one friend. In POS, no rights will be given to any one person or investor and only one will be prevented from getting rich. It rather believes in profit for all principles and makes the system less biased.
The POS system vows to bring more stability as well as decentralization to the cryptocurrency. Ethereum is the second largest cryptocurrency by current market cap validating the concept of PoS making it globally accepted and gaining the attraction of more and more miners or validators. .
Any recent jump in the price of Ethereum?
Ethereum has always been famous cryptocurrency Out of the thousands that gives bitcoin good competition. The recent surge in the price of Ethereum says the same. The Ethereum token commonly known as Ether (ETH) was recently on cloud nine as it gained 10% compared to Bitcoin. But it could not hold its joy for very long, as a rebound hit it and started performing poorly at very low levels. But hold your horses and don’t jump to any conclusions, because nothing like this can be said or predicted in the industry. Since Ethereum already has a long-term trust in its’ investors who can lose from one or two such instances and will maintain their position in good faith.