For those unaware, among the changes in Ethereum 2.0 is the departure of the Proof of Work (PoW) and will use Proof of Stake (PoS). Abandoning the proof-of-work consensus means the end of mining with graphics cards. If you have a platform, you are probably wondering what to do when the block validation system changes.
Goodbye PoW on Ethereum, why is it abandoned?
Two reasons are generally given for switch from proof of work to proof of stake. The first is improve scalability of the Ethereum network. Additionally, it is stated that PoS is a more efficient mechanism, since consumes much less energy. Both reasons are true, but really the most important is the first.
Ethereum presented network congestion on countless occasions. When we talk about congestion, it is a process in which the number of incoming transactions is greater than the number of transactions that the network can validate. It is estimated more or less that the Ethereum blockchain can validate approximately 15 transactions per second.
When this figure is exceeded for a long period, the cost of transaction fees increase enough (come on, raise the gas charge). There have been times, especially during the NFT bubble, where GAS costs have exceeded $100 and even $200.
For those who want to send money, exchange tokens or other operations, like running a smart contract, these costs are insane.
For this reason, a proof-of-stake was chosen, which allows for greater scalability. This means many more transactions can be processed per second and commissions will drop. It is estimated that should exceed 50,000 tx/s. As a collateral consequence, the energy consumption needed to validate transactions has dropped.
What should I do with my Ethereum mining rig?
You are probably wondering what to do with your mining rig once we go to Ethereum 2.0. Well, you have several options, such as:
- As you will get with gaming graphics cards, you can clean them and resell them usedAlso, I’m sure it’s very easy.
- You can choose continue miningbut in this case, Ethereum Classic, GRIN, Ravencoin, ERGO and other cryptocurrencies compatible with graphics cards
It is possible that you have considered this second option and that the profitability does not convince you at all. Let me tell you that you do not take into account that when the consensus is changed, there will be a chain of movements.
It is estimated that when Ethereum switches to its PoS consensus and shards, the price can increase significantly. At the same time, a rise in the price of altcoins that continue to use the PoW consensus is estimated. Among the top-rated, for coming up with fairly strong projects, are Ethereum Classic and ERGO. SERO, Conflux, Metaverse and Ubiq are other interesting projects whose price could increase.
For now, a good option is to keep mining Ethereum while you can. It is possible that the update will not be released this year as it has been delayed several times. It looks like there’s still quite a bit to sort out at the moment, so we’ll keep going and when the update arrives, we’ll do as we see fit.
