By: Fat Cat Jun & Guo Yuzhi
Ethereum, as the second-largest cryptocurrency by market cap, has always garnered significant attention. According to its roadmap, Ethereum plans to upgrade to ETH 2.0, transitioning its consensus mechanism from Proof-of-Work (PoW) to Proof-of-Stake (PoS). This shift is seen by some as a new opportunity in the crypto market. But what potential impacts could ETH's move to PoS have?
ETH 2.0: A Catalyst for New Forks?
Some Twitter users speculate that ETH 2.0's transition to PoS could fragment the community. While PoS improves scalability, it may not gain unanimous support. If a fork occurs, miners might migrate to Ethereum Classic (ETC) rather than the new chain. One user asked, "Where will all the hashpower go when Ethereum switches to PoS?" Ethereum developer Virgil Griffith responded that ETC would become the largest PoW Ethereum-based chain.
Twitter User: "ETH’s shift to PoS will divide the community."
Twitter User: "A fork could redirect miners to ETC, not the new chain."
Ethereum Developer: "ETC will emerge as the top PoW Ethereum chain post-transition."
Similar discussions arose in 2017. A small-sample survey back then found that 10 out of 28 respondents believed ETH’s PoS shift would redirect hashpower to ETC.
Where Will ETH’s Hashpower Go? Does ETC Stand a Chance?
Mining experts and hardware manufacturers are key observers of this shift. Guo Yuzhi, Operations Director at Panda Mining Pool and Niubit, shared insights with Tuoluo Finance:
- ETH’s full transition to PoS is ~2 years away. Predicting a "phenomenal" GPU-minable project to fill Ethereum’s shoes is challenging.
- Without a standout successor, GPU mining’s growth may stagnate or decline, with smaller coins absorbing residual hashpower.
What Makes a Project Attractive to Miners?
Guo outlined criteria for miner-supported projects:
- Decentralization aligned with blockchain’s core values.
- Long-term viability with substantial market potential.
- Stable consensus algorithms and fair mining incentives.
- Consistently rising market cap.
Current PoW Landscape:
- ASIC Coins: BTC (SHA-256), LTC, ZEC, DASH.
- GPU Coins: ETH (dominant), ETC, Grin, Beam, XMR.
Key Takeaway: No existing GPU-mined coin can singularly absorb ETH’s hashpower. While coins like Grin or RVN show promise, none rival Ethereum’s scale.
ETC’s Upgrade: Closing the Gap with Ethereum?
Data from BitInfoCharts reveals:
- ETH’s hashpower (~177 TH/s) dwarfs ETC’s by 15x.
- ETC’s recent price surge boosted its mining rewards and hashpower.
👉 Why ETC’s Atlantis upgrade matters
ETC’s upcoming "Atlantis" upgrade (September 12) and a year-end performance overhaul aim to match ETH’s capabilities. Community optimism aside, tangible outcomes require post-upgrade evaluation. Though ETC sheds its "Doomsday Train" stigma, its consensus, adoption, and influence lag far behind Ethereum’s.
FAQs
Q: When will ETH fully transition to PoS?
A: Estimated within ~2 years, but timelines may shift.
Q: Can ETC replace ETH for miners?
A: Unlikely—ETC lacks ETH’s ecosystem size and adoption.
Q: What’s the best GPU alternative post-ETH?
A: Smaller coins like RVN or BEAM may gain traction, but none match ETH’s scale.
Final Thought: ETC’s survival hinges on sustained upgrades and community trust. For now, Ethereum’s shadow looms large.