Justin Sun’s Poloniex will support the Ethereum Proof-of-Work fork

Last week, Chandler Guo, a major Chinese crypto miner, announced its intention to resist the Ethereum “merger”” from fork Ethereum block chain and create a proof-of-work version derived from the network.

This campaign has gained a notable ally today.

Cryptocurrency exchange Poloniex announced this morning that it will support and list ETHW, the fork of Guo proof of work version of Ethereumfrom next week.

Advertising

The “merger” of Ethereum refers to the long-awaited transition of the network proof of participation. Currently, Ethereum operates on a proof-of-work model that allows so-called miners to create new ETH by directing huge amounts of computing power into hard-to-solve puzzles. The merger will transform Ethereum towards a faster and more scalable proof-of-stake model, where new ETH is created by committing or targeting large amounts of pre-existing ETH.

The merger would then put an end to ETH’s mining practice, a blow to miners like Guo. It is for this reason that he and others are attempting to launch ETHW: to allow people to continue mining a form of Ethereum. And from today Poloniex supports this campaign.

In a blog postPoloniex said he meant “give full support to the ETH update and its potential hard fork. Starting August 8, the exchange will allow users to trade ETH for ETHW and vice versa, in a one-to-one ratio. Poloniex will also list ETHS, a cryptocurrency that represents Ethereum’s proof-of-stake that will exist if the merger is successful, in a one-to-one relationship with ETH.

If the merger, that is it should take place in September, it shuts down smoothly, then Poloniex will automatically convert all ETH to updated ETH after the merger. And, if at that time Guo and his followers fail to fork the Ethereum network, Poloniex will suspend and shut down ETHW and its associated markets, according to the blog post.

When the listing was announced, Poloniex’s main investor, the CEO of Tron Giustino Soletook to Twitter to celebrate the news.

“We have seen the consensus mechanism of [proof of work] as a key factor in expansion [the] the Ethereum ecosystem, “Sun said this morning,” and they are ready to continue supporting community development. “

Guo and other ETH miners hope that the creation of ETHW will allow mining of a version of Ethereum to continue. But ETHW would be a completely separate network and cryptocurrency from Ethereum, with no market value or intrinsic utility.– unless you find support for developers, a marketplace and users.

Poloniex’s approval of the fledgling token provides it with much-needed credibility. The move is also consistent with Sun’s historic and often tense relationship with Ethereum and network co-founder Vitalik Buterin.

The strong similarities between Sun’s Tron network and Ethereum, which predates it by several years, have been known for some time, and even granted by the Sun itself. Tron’s white paper was even scrutinized for possible plagiarism.

Over the years, Sun and Buterin have done this traded countless beards; once, sun planted a live chat from Buterin, accompanied by a man dressed as a lawyer, in an apparent attempt to escalate a previous online feud. The founder of Tron has previously admitted having a kind of obsession with Buterin.

Buterin, meanwhile, is currently involved in the Ethereum merger, an important and highly anticipated event that has been in the works for years. A hard fork like the one ETHW is attempting would surely be a thorn in Buterin’s side, which, if successful, could damage the legitimacy of the new post-merger Ethereum network.

It is still very big Selfand ETHW’s chances of success are slim. But with the help of Poloniex and Sun, they have improved a bit.

Stay up to date with cryptocurrency news, get daily updates in your inbox.

Leave a Comment