Home Blockchain Classic Ethereum Eye Miner Activity As Merger Approaches

Classic Ethereum Eye Miner Activity As Merger Approaches

Classic Ethereum Eye Miner Activity As Merger Approaches

Holders of Ethereum Classic (ETC) are cautiously monitoring mining activity on its blockchain, as the impending Ethereum (ETH) merger and transition to the Proof-of-Stake consensus mechanism draws more attention to the six-year-old cryptocurrency. year.

The drastic jump in activity may signal a shift in focus for cryptocurrency miners. It could also reduce the risks of a so-called “51% attack” on ETC, which have been levied against the blockchain in the old days.

The Ethereum Classic network’s hash rate — a measure of the computing power per second used when mining a cryptocurrency — hit an all-time high on Thursday. According to data from the Crypto Market Intelligence Company Messarithe ETC hash rate was 42 terahashes, or 42 trillion hashes per second.

The previous high was 28.32 terahashes last May, coinciding with ETC’s record price of $118.

A likely reason for the increased activity is that the merger will leave Ethereum miners in troublecontaining expensive hardware designed for proof-of-work blockchains that are unnecessary in the new proof of stake model. Whereas some minors want to create a hard fork of Ethereum at keep their livelihoodothers may redeploy their gear to mine other proof-of-work cryptocurrencies, like Ethereum Classic.

Ethereum Classic is a fork of the Ethereum blockchain launched after the Ethereum blockchain had to be canceled and relaunched in 2016 after the DAO project hackcausing a split within the Ethereum community.

Ethereum Classic risk of attack

Because Ethereum Classic is not among the largest cryptocurrencies – hovering around 19th by market capitalization, according to CoinGecko – many crypto analysts fear it is vulnerable to a 51% attackwhere a single party or group can take control of a blockchain managing the majority of transaction validations.

Although any blockchain can eventually face this type of attack, they are more prevalent in proof of work blockchains like ETC, Bitcoin and, at least for the next few weeks, ETH. A 51% attack on Bitcoin is unlikely, however, due to the size of the blockchain and the exorbitant cost the computing power required.

ETC has been targeted in such attacks before, in January 2019 and August 2020.

“Earlier today, @eth_classic $ETC experienced a 3,693 block chain reorganization,” Binance wrote on Twitter in the latter case. “Our alert system detected it immediately and automatically stopped withdrawals and deposits. It appears to be a 51% attack.”

Crypto analysts have weighed the risks of another attack on Ethereum Classic in the merger era. Contributor to the Ethereum Classic codebase, meowsrecently published a detailed article 51% attack risk assessment against ETC.

“Ethereum plans to transition to Proof of Stake in the near future, which will forcibly eject its mining interests,” the report notes. “As the second largest cryptocurrency application of this hash power, it stands to reason that ETC should expect its hash rate to be boosted by at least some of these abandoned miners.”

“If Ethereum Classic achieves the position of dominant application of hashing power, its risk exposures would fall to a minimum,” he adds.

In other words, the recent flurry of activity on the ETC blockchain is a good sign, because a high hash rate protects networks of the attack.

As for the cryptocurrency itself, ETC has reached a four months high earlier this month, assigned to the ongoing merger. Currently, the ETC trading price is $36.36, according to CoinGecko.

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