Which Projects Have Stated That They Do Not Support Ethereum Bifurcation?

2022-08-24, 02:40

[TL;DR]

Some miners view Ethereum's Merge and shift to proof-of-stake as a threat to their investment and means of earning.

This group, led by Chandler Guo, has decided to fork the Ethereum protocol, splitting the blockchain into two so miners can continue their operations on the new ETHPoW.

Some projects have rejected this Bifurcation claiming that the era of proof-of-work is about to elapse.

While the ETHPoW team has taken some steps toward realizing the Bifurcation, certain factors are still critical to its success.

Introduction

The Ethereum Merge is the most awaited event across the Ethereum ecosystem whereby the network will move from a proof-of-work consensus mechanism to a proof-of-stake. As part of the migration process, the difficulty bomb was created as a technique to deter miners from encumbering the merging by making it more difficult to mine Ethereum blocks. The Ethereum core developers adopted this technique purposely to avoid a secondary blockchain from being in operation after a chain split caused by a protocol change. The reduction in mining rewards and gradual phase-out of mining has not pleased some miners who feel it jeopardizes their investment. This group of miners, led by Chandler Guo, have come out to say they will defy the process and separate from the main Ethereum network. They asserted that they would fork the Ethereum protocol to enable miners to continue mining operations after the merging when Ethereum transits to a proof-of-stake consensus. This Bifurcation of Ethereum is generating a debate, with some arguing for it while others arguing against it.

What is Ethereum Bifurcation?

Ethereum bifurcation is a potential hard fork to separate from Ethereum's main network and create a new ETHPoW that will continue utilizing a proof-of-work consensus protocol even after the Merge. In the cryptocurrency community, hard forks are disruptive events. However, this is a feature of cryptocurrency technology, not a flaw. A cryptocurrency fork can result in the creation of two distinct but equally valid cryptocurrencies.

Disagreement and debate are inextricably linked to a culture of openness, transparency, and decentralization, which means that a community rather than individuals control a currency. Ethereum bifurcation would create two blockchains, each running its version of the protocols and currencies that function on the chain. Before now, there was a bifurcation of Ethereum, which gave birth to the Ethereum Classic. The Bifurcation came about following a $55 million cryptocurrency hack. On the heel of the attack, the Ethereum (ETH) network split into two cryptocurrencies, each on its blockchain. They have very different protocols, reflecting their divergent ideologies and technical priorities.

Why Bifurcation of Ethereum Might Fail?

The Ethereum Classic (ETC) Cooperative has written an open letter to Chandler Guo, discussing why the new imminent bifurcation, ETHPoW fork will fail and why miners should switch to Ethereum Classic. The ETHPoW, in its response to the ETC cooperative, contended that Ethereum Classic would not be able to handle all current Ethereum miners. Hence, several PoW forks are required. The team stated further that a small pool of ETC cannot contain the vast pool of ETH computing power, implying that the hard split is unavoidable in light of such hard facts. The project team mentioned that it had undertaken some modifications in preparation for the Bifurcation. According to the team, part of the preparation is that it has removed the "difficulty bomb" functionality from its version of the Ethereum code. By eradicating this technique, ETHPoW aspires to make it easier for miners to generate new blocks when the Bifurcation occurs.

How Does Bifurcation Work?

Although the Bifurcation of two cryptocurrencies may not be entirely the same, they occur in a similar manner

🔹 The first step towards Bifurcation or establishing a hard fork is to copy the protocol and work on changes to it offline. The fact that many crypto protocols are open-source makes it possible.

🔹 Following the definition of the new rules, the team working on the split selects a block number at which the Bifurcation will go live and become active. This block number lets everyone know when the cryptocurrency split will occur.

🔹 The cryptocurrency fork occurs when the block number is reached and the community splits. Some people may still support the original protocol and continue to add blocks to the old blockchain.

🔹 Others will follow suit and begin adding blocks to the new blockchain.

Projects that are against the Bifurcation

In the debate on Ethereum, some projects have stated that they will not support the Bifurcation. Among these projects are:

1.Ethereum
Ethereum through its founder, Vitalik Buterin, has spoken out strongly against any potential hard fork. Vitalik asked proof-of-work enthusiasts to support the Ethereum Classic chain at the EthCC. He also claimed that supporters of hard forks are exchange owners looking to make quick money.

2.Chainlink
The leading smart contract company has also announced that it will only support Ethereum's proof-of-stake layer. Chainlink asserted that it would not support any other hard forks.

3.F2pool
The second largest mining pool has also declared that the era of proof-of-work on Ethereum is over. They have delegated the decision to individual Ethereum miners. They do, however, hope to progress to proof-of-stake.

4.DeBank DeFi
According to the major crypto portfolio company, an Ethereum hard fork will be a disaster. They stated that their products would support no token derived from a hard fork.

5.Digital Currency Group
The founder of the Group, Barry Silbert, has publicly stated his support for only Ethereum and Ethereum Classic. Grayscale, Genesis Trading, and CoinDesk are all subsidiaries of Digital Currency Group.

6.ETC Cooperative
The ETC Cooperative has also published an open letter explaining why an Ethereum hard fork will not work. They explain the increased difficulty of a hard fork this time, as opposed to when Ethereum was hard forked in 2016.

Some other projects, such as the Tron blockchain and Poloniex Exchange project, have been the most vocal advocate for an Ethereum hard fork. Both ETHw and ETHs tokens are listed on his Poloniex exchange. Over this issue, the founder Justin Sun also had a verbal spat with Vitalik Buterin. Others who support include BitMEX, Huobi, and OKX

Preparing for any Eventuality

When a cryptocurrency hard fork is imminent, there are a few things that new currency holders should keep in mind.

1. You must access your private key to claim the new currency. Do not expect your cloned currency to appear in your cryptocurrency wallet automatically.

2. It is common for currency exchanges to refuse to support the new cryptocurrency fork immediately. In other words, if the exchange does not support it, you will be unable to access your new coins. Storing your tokens in a wallet with your private key guide against this issue ensures you can access your cryptocurrency on both new and old blockchains.

Conclusion

Ethereum bifurcation is gathering momentum by the day with the modifications the team behind the project has done to the Ethereum protocol. There are, however, some other critical steps that will determine its success or otherwise. For those who believe the era of proof-of-work is over, the project is nothing more than being tied to a mechanism that may soon belong to history.

Author: Gate.io Observer: M. Olatunji
* This article represents only the views of the observers and does not constitute any investment suggestions.
* Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all other cases, legal action will be taken due to copyright infringement.

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