Termination of Ethereum mining

Elena Klimovich

10:37 23/05/2022

Termination of Ethereum mining

It’s about switching to the algorithm Proof-of-Stake which can work without miner’s help while Proof-of-Work, that is used now, needs their resources. The ETH founder Vitalik Buterin is sure that the launch is possible this year, in August 2022.

The essence of the Proof-of-Stake (PoW) is that functioning of blockchain is possible because of token’s holders who can receive profit for staking. Except for working without miners the PoW can increase throughput, effectiveness, speed and scalability. All of these can make all transactions more secure and faster.

The reason for Ethereum 2.0 has become an increasing number of users and safety demands. Now the platform needs agreements of miners for each block but further that function will pass to the validators who hold their part of tokens.

In addition the quantity of chains will increase for 64 and we can say for sure that the velocity of all operations will be faster. The protection of Ethereum 2.0 will include “attack 51%” security. That means the possibility of the person who holds the majority of the coins to change the processes lines even by illegal activity.

Despite attempts by the Ethereum Foundation to deny the name “Ethereum 2.0” it’s used by all the market participants.

However the main question is not naming. All investors are worrying about the cost of the ETH. Almost all experts are concerned that the new launch will be the reason for the extremely high level of volatility and at the same time they talk about the possibility of increasing the cost of the token. For example, Nikita Soshnikov from Alfacash predicts $6 000 in 3-4 month after the project is finished.

The same opinion has Nikita Zuborev (Bestchange.ru) who gives the forecast that supply will decline. Almost all experts predict the depreciation of the rates in a short period. Zuborev suggests that positive news from the Ethereum side will make the rates increase. And the negative information will bring the opposite effect.

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