What is EthereumPoW? All You Need to Know About ETHW

EthereumPoW (ETHW) is a new blockchain forked from Ethereum, maintaining the Proof of Work consensus mechanism after Ethereum’s move to Proof of Stake

In September 2022, Ethereum underwent a landmark transition with The Merge, shifting from the energy-intensive Proof-of-Work (PoW) to the more efficient Proof-of-Stake (PoS) mechanism. This evolution was a strategic move to enhance scalability and reduce energy consumption. The PoW model, reliant on miners for transaction validation, faced criticism for its environmental impact, leading to the adoption of PoS where validators are chosen based on their stake. However, this shift sparked concerns among miners about their future earnings. Addressing these concerns, EthereumPoW (ETHW) emerged as a hard fork, preserving the original PoW consensus, and continuing the legacy of Ethereum’s mining-based system.

What is EthereumPoW (ETHW)?

The history of EthereumPoW (ETHW) is intertwined with Ethereum’s evolution, a platform conceptualized by Vitalik Buterin in 2013 and launched in 2015. Ethereum, pivotal in decentralized finance (DeFi) and smart contract innovation, experienced a significant fork in 2016 following a hack on “The DAO,” leading to the creation of Ethereum Classic (ETC). The journey to Ethereum 2.0, beginning in 2020, aimed to transition Ethereum from Proof-of-Work (PoW) to Proof-of-Stake (PoS) to enhance scalability and reduce energy usage. The Merge, a pivotal update in Ethereum’s transition, involved integrating the Ethereum beacon chain, known as the consensus layer, with the existing Ethereum chain, referred to as the execution layer, thereby replacing the Proof of Work (PoW) component with a Proof of Stake (PoS) system.

EthereumPoW’s genesis lies in the disagreement within the Ethereum community over this transition. Some miners, reluctant to move from Proof of Work due to concerns over earnings and network security, opted to fork the Ethereum blockchain. EthereumPoW, proposed by crypto veteran Chandler Guo on July 27, 2022, materialized as a hard fork of Ethereum, maintaining the PoW consensus. On September 13, 2022, the anonymous ETHW Core development team announced the ETHW mainnet launch, set to occur within 24 hours of The Merge. This fork, endorsed by figures like Tron founder Justin Sun, aims to sustain the original PoW mechanism, preserving a path for miners in the evolving Ethereum landscape.

How Does EthereumPoW Work? Consensus Mechanism

EthereumPoW, or ETHW, operates on the Proof of Work (PoW) consensus mechanism, a legacy of the original Ethereum blockchain pre-Merge. This approach, known for its security and reliability, involves miners solving complex mathematical puzzles to validate transactions and create new blocks. The security of PoW is largely dependent on the number and distribution of miners and nodes worldwide; a greater spread typically implies a more secure network.

After the Ethereum network’s landmark transition to Proof of Stake (PoS) with The Merge, it bifurcated into two distinct versions: ETH (employing PoS) and ETHW (retaining PoW). In this new landscape, ETHW miners earn Ethereum tokens as rewards for their computational efforts, contrasting with the PoS model where validators earn revenue by staking ETH.

The core difference between PoW and PoS lies in their approach to achieving consensus and network security. PoW requires substantial computational power, with miners competing to solve puzzles and validate transactions. This energy-intensive process has been critiqued for its environmental impact, prompting Ethereum’s shift to PoS.

In contrast, PoS selects validators based on the amount of cryptocurrency they hold and are willing to ‘stake’ as collateral. This method is less energy-intensive and is seen as a way to address the scalability and environmental concerns associated with PoW. However, it’s important to note that PoS is not a direct replacement for the original Ethereum blockchain; it’s more of a fusion of Ethereum’s mainnet (execution layer) with the Beacon Chain (consensus layer).

ETHW adheres to the traditional PoW mechanism, which Ethereum used since its inception. The scheduled difficulty bomb, designed to make mining harder and gradually transition the network to PoS, has been removed from ETHW. This enables continuous mining without increasing difficulty, maintaining an environment conducive to miners. ETHW’s commitment to PoW appeals to miners who fear bankruptcy in a PoS-dominated landscape, where token creation is tied to staking rather than mining.

In summary, EthereumPoW upholds the legacy of Ethereum’s original consensus approach, offering a haven for miners in a shifting blockchain ecosystem. While less energy-efficient than PoS, PoW’s robustness and security continue to hold significant appeal.

Source: ethereumpow.org

EthereumPoW Use Cases

EthereumPoW (ETHW), maintaining the traditional Proof of Work (PoW) mechanism, offers a range of use cases similar to those of the original Ethereum blockchain before the transition to Proof of Stake (PoS). Its utility spans various sectors, leveraging the well-established PoW consensus model:

• Smart Contracts and DApps: Like Ethereum, ETHW supports decentralized applications (DApps) and smart contracts, enabling automated, transparent digital agreements.
• Decentralized Finance (DeFi): ETHW can host DeFi applications, providing services like lending, borrowing, and yield farming without central intermediaries.
• NFTs and Digital Collectibles: Non-fungible tokens (NFTs) and digital collectibles can be minted, bought, and sold on the ETHW network, fostering a market for digital art and assets.
• Gaming and Metaverse Projects: ETHW’s capability to support gaming platforms and metaverse projects allows for the creation of virtual worlds and game assets on the blockchain.

In conclusion, EthereumPoW extends the functionalities of Ethereum’s original PoW system, offering a familiar environment for developers and users. It sustains the diverse ecosystem of applications ranging from finance to digital art, making it a viable alternative for those preferring the traditional PoW model amidst the evolving blockchain landscape.

What is the ETHW Coin?

ETHW Coin is EthereumPoW’s native cryptocurrency, used for transactions and rewards on its blockchain. Its total and circulating supply counts 107,818,999 units (January 2024). When EthereumPoW forked from Ethereum, it began with an identical circulating supply. However, due to the nature of Ethereum’s staking contract, which only allows deposits and no withdrawals, the staked ETH couldn’t be accessed on EthereumPoW. This reduced ETHW’s circulating supply by about 13.7 million ETH.

The ETHW Coin is the native token of the EthereumPoW blockchain, a result of the hard fork from the original Ethereum network. Unlike ERC20 tokens, ETHW doesn’t have a contract address since it’s integral to its public chain. When EthereumPoW forked, it created a scenario where holders of Ethereum (ETH) at the time of the snapshot automatically received an equivalent amount of ETHW in their wallets. This process, often mislabeled as an “airdrop,” simply required users to add the EthereumPoW mainnet RPC to their wallets to access their ETHW.

ETHW serves a dual purpose within its ecosystem. It acts as transaction fuel, facilitating operations and smart contract executions, and as rewards for miners. Miners earn ETHW through block rewards and transaction fees. The value of ETHW, like any cryptocurrency, is subject to market dynamics including demand, supply, and broader adoption. It plays a crucial role in both the transactional framework of the EthereumPoW network and as a potential investment asset.

EthereumPoW Ecosystem

The EthereumPoW (ETHW) ecosystem is a vibrant network, encompassing various components that facilitate seamless operations and interactions within its blockchain. Key elements include:

ETHW Bridges

ETHW Bridge: Officially supported, it allows users to connect wallets like MetaMask and bridge assets like USDT, USDC, and ETH between ETH and ETHW chains. Detailed user guides are available on their website.

Camelark Bridge: ETHW’s Layer2 scaling solution uses Optimistic Rollup technology for faster transactions, lower costs, and EVM compatibility, ideal for DApp development. It also supports cross-chain transfers of ETHW and ERC20 tokens.

Wallets

Popular options: Like MetaMask and Trust Wallet support ETHW.

Wafebox: A platform for managing digital assets, allowing users to create or load existing ‘Wafes’ for asset management.

DEXes (Decentralized Exchanges)

Zergswap: An AMM-based protocol, offering liquidity pools for token trading without the need for a counterparty.

Powswap: The first DEX on ETHW, catering to the Ethereum PoW fork community.

NFT Marketplaces

yayasea, Nswap, and Nuwton: These platforms offer various services like NFT trading, launchpads, and raffles, fostering a thriving market for digital collectibles on ETHW.

Services

NOWNodes: Provides full Ethereum PoW node and block explorer access, crucial for Web3 development. Offering 98 nodes, it supports real-time blockchain data analysis and dApp development, with a 99.95% API uptime and free API keys for easy integration.

Blockroma: An open-source, EVM-compatible blockchain explorer built with TypeScript, React, and PostgreSQL, offering real-time visualization of transactions and tokens. It’s easily customizable, deployable in hours, and available as a managed solution with custom themes and premium support.

These are just a few of the many projects and services that make up the dynamic EthereumPoW ecosystem, each contributing to its growth and utility in the blockchain world.

Source: ethereumpow.org

Is ETHW a Good Investment?

Investing in ETHW requires careful consideration. While Proof of Work (PoW) is often viewed as a more secure consensus mechanism than Proof of Stake (PoS), ETHW’s network could face challenges due to its limited number of nodes. This limitation potentially affects the network’s security and resilience.

The Ethereum 2.0 upgrade, which transitioned to PoS, garnered substantial support from the user community, signaling its success and widespread adoption. ETHW, in contrast, appears to primarily attract a specific segment of the Ethereum community, particularly miners who view it as an opportunity for continued profitability in the PoW space. Therefore, potential investors should weigh these factors and the overall market dynamics before considering ETHW as an investment option.

How to Own ETHW?

To own ETHW, you can use the services of a centralized crypto exchange. Start by creating a Gate.io account, and get it verified and funded. Then you are ready to go through the steps to buy ETHW.

News on EthereumPoW

According to what was stated in the EthereumPoW Medium channel, dated December 19, 2023, the EthereumPoW (ETHW) Core team announced its dissolution to transition ETHW towards full autonomy. This unanimous decision, rooted in consensus, ensures the continuation of Proof of Work (PoW) as the chain’s consensus mechanism and shifts towards decentralized governance. The team’s responsibilities will temporarily pass to OneDao for maintenance, as they seek long-term partners to sustain the chain’s development and governance, marking a significant shift towards a self-governed blockchain ecosystem.

Useful References

For the latest updates about EthereumPoW, you can visit:

• The official website
• Twitter
• Telegram
• Discord
• @ETHW">Medium
• GitHub

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