Lv Lei, the Antpool’s CEO, announced at Bitmain’s World Digital Mining Summit on Tuesday that AntPool, the mining pool associated with mining rig behemoth Bitmain, has contributed $10 million to assist the Ethereum Classic mining pools and intends to continue doing so.
The alternate Ethereum-offshoot that will continue to mine using proof-of-work is receiving support from the mining pool.
Ethereum Classic mining pools will continue to use the proof-of-work methodology even while the Ethereum network works to switch to a proof-of-stake (PoS) model (PoW). With PoS, Ethereum will fundamentally alter how it verifies blocks, adds them to the blockchain, and creates new ether (ETH). By doing this, it will do away with the need for specialised mining rigs like those made by Bitmain.
Ethereum Classic Mining Pools
However, Ethereum Classic will keep using these rigs to mine its unique ETC coin.
To improve the network’s overall performance, the initial $10 million investment was used to create and test applications for the Ethereum Classic mainnet.
Early in July, Bitmain began selling the Antminer E9, its most recent Ethereum mining device. Additionally, the manufacturer of the mining rigs declared that it will now take ETC payments for all of its Antminer models during the World Digital Mining Summit in Miami.
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July brings relief to the cryptocurrency market as Ethereum Classic nearly triples in value, MATIC and UNI surge.
According to one observer, Ethereum classic’s price increase is consistent with its history of supporting significant Ethereum upgrades.
The cryptocurrency market has experienced some relief in July, with out-of-favor coins like UNI and MATIC and ethereum classic (ETC), the allegedly dead coin and not entirely identical copy of Ethereum’s ether (ETH) token, leading the recovery in digital assets with at least $1 billion in market value.
According to CoinDesk data, ETC has increased by 184% this month, while MATIC, a scaling system by Polygon, and UNI, a decentralised exchange from Uniswap, have increased by 102% and 86%, respectively. At the time of publication, ether had increased by 60% and market leader bitcoin (BTC) by 20%. From its $762.82 billion low last month, the overall market capitalization of cryptocurrencies has increased to $1.14 trillion.
Coin-specific considerations as well as the general market risk reset, according to analysts, are at work.
ETC rise is fueled by Ethereum’s merger
According to Lucas Outumuro, head of research at IntoTheBlock, “ETC is being driven by speculation that ETH miners would switch to ETC and possibly, there could be another hard fork favouring them.” A proof-of-stake (PoS) blockchain will replace the network’s proof-of-work (PoW) blockchain as a result of Ethereum’s upcoming Merge. As a part of such procedure, Ethereum’s Beacon Chain has been operational since 2020.
Following the Merge, which is anticipated to take place on September 19, Ethereum will begin functioning as a proof-of-stake (PoS) chain, forcing market players known as validators to stake, or hold, a minimum number of coins to confirm transactions in exchange for rewards. To verify transactions in a PoW system, miners must solve a computational challenge.
Due to the merge, Ethereum miners will need to relocate to Ethereum Classic, which is allegedly the only chain compatible with their mining equipment.
The Merge is getting closer, yet Bitmain is still introducing an Ethereum ASIC.
ASICs and GPUs are the two types of technology that make up Ethereum’s mining network, according to a research paper by Sami Kasab of Messari. “The drawback of ASICs is that they can only be used to mine ETH; other uses are not possible. As a result of its hashing method being consistent with ETH’s algorithm, Ethereum Classic is the only other PoW coin that can be mined with an ETH ASIC.
The Bitmain-affiliated mining pool AntPool recently contributed $10 million to the Ethereum Classic ecosystem. The DAO, a smart contract running on the Ethereum blockchain, was hacked in 2016, leading to the creation of Ethereum Classic, a hard-forked version of Ethereum. The increase in ETC in July is in line with other instances of a rallying around significant Ethereum upgrades.
“With Ethereum’s Berlin upgrade, ETC had a rise in April 2021. In a same vein, ETC appears to be strengthening in response to anticipation surrounding the Merge “According to the Toronto-based cryptocurrency platform FRNT Financial, investors may view ETC as a hedge against any potential complications with the shift. Early today, ETC traded at a 3 1/2-month high of $45 on the major exchanges.
Bitmain will launch a new model of Ethereum mining equipment.
The CEO of mining pool AntPool, Leon Lv, announced at Bitmain’s World Digital Mining Summit (WDMS) on Tuesday that the company has already contributed $10 million to assist the Ethereum Classic mining pools and plans to do so going forward.
Ethereum Classic will continue to use the proof-of-work methodology even while the Ethereum network works to switch to a proof-of-stake (PoS) model (PoW). With PoS, Ethereum will fundamentally alter how it verifies blocks, adds them to the blockchain, and creates new ether (ETH). By doing this, it will do away with the need for specialised mining rigs like those made by Bitmain.
However, Ethereum Classic will keep using these rigs to mine its unique ETC coin.
“Making one [ETC vs. ETH] stronger than the other is not the objective here. We simply favour PoW because we believe it to be superior to PoS “At the conference, Lv spoke with CoinDesk.
Conclusion
The initial $10 million investment will be used to explore and create Ethereum Classic mainnet applications in order to improve the network’s overall performance.
Lv told CoinDesk on the margins of the conference that AntPool aims to bring together a “community” to decide how to best invest the funds, which have been set aside in a separate wallet. According to Lv, this might take the shape of a Decentralized Autonomous Organization (DAO) or a loosely knit society with open participation.
While Bitmain and AntPool are primarily focused on bitcoin, the CEO stated that over the next few years, this PoW community will become one of AntPool’s key businesses.
Early in July, Bitmain began selling the Antminer E9, its most recent Ethereum mining device. Additionally, the manufacturer of the mining rigs declared that it will now take ETC payments for all of its Antminer models during the World Digital Mining Summit in Miami.