What is ETHW

Answered at Sep 30, 2024

What is ETHW: Understanding Ethereum's Proof-of-Work Fork

ETHW, or EthereumPoW, emerged as a significant development in the cryptocurrency landscape following Ethereum's transition to a proof-of-stake (PoS) consensus mechanism. This fork represents a continuation of Ethereum's original proof-of-work (PoW) blockchain, preserving the mining-based approach that some community members strongly advocated for. As we delve into the intricacies of ETHW, we'll explore its origins, features, and implications for the broader crypto ecosystem.

The Genesis of ETHW

ETHW was born out of the Ethereum Merge, a pivotal event that saw the original Ethereum network shift from PoW to PoS in September 2022. This transition left miners, who had invested heavily in hardware and infrastructure, at a crossroads. Led by Chinese miner Chandler Guo, a group of stakeholders decided to fork the Ethereum blockchain, creating EthereumPoW to maintain the PoW consensus mechanism.

ETHW Coin: The Native Currency

The ETHW coin serves as the native cryptocurrency of the EthereumPoW blockchain. As of January 2024, its total and circulating supply stands at 107,818,999 units. Interestingly, when EthereumPoW forked from Ethereum, it initially had an identical circulating supply. However, due to the nature of Ethereum's staking contract, which only allows deposits and no withdrawals, the staked ETH couldn't be accessed on EthereumPoW. This peculiarity reduced ETHW's circulating supply by approximately 13.7 million ETH.

Key Features and Functionality

ETHW maintains the core functionalities of the original Ethereum network, including smart contract execution and decentralized application (DApp) support. It uses the ETHASH algorithm for mining, ensuring continuity for miners who wish to continue using their existing hardware. The ETHW coin plays a dual role within its ecosystem:

  1. Transaction fuel: It facilitates operations and smart contract executions.
  2. Miner rewards: Miners earn ETHW through block rewards and transaction fees.

ETHW vs. ETH: Key Differences

While ETHW and ETH share a common ancestry, they have distinct characteristics:

  1. Consensus Mechanism: ETHW uses PoW, while ETH now operates on PoS.
  2. Network Security: ETHW's security relies on mining power, potentially facing challenges due to a limited number of nodes.
  3. Community Support: ETH has garnered substantial support from the user community, while ETHW primarily attracts miners and PoW advocates.
  4. Ecosystem: ETHW is developing its own ecosystem, including bridges, wallets, and DApps, though it's less extensive than Ethereum's.

The ETHW Ecosystem

The EthereumPoW ecosystem is evolving, with various components facilitating network operations:

  1. ETHW Bridges: Official bridges allow users to transfer assets between ETH and ETHW chains.
  2. Wallets: Both desktop and mobile wallets support ETHW, though users must add the EthereumPoW mainnet RPC to access their tokens.
  3. DApps and DEXs: The network is developing its own decentralized applications and exchanges.

Mining ETHW

For miners, ETHW presents an opportunity to continue using their existing Ethereum mining equipment. Popular mining software like T-Rex Miner and lolMiner support ETHW mining for both AMD and NVIDIA GPUs. Additionally, ASIC miners designed for the ETHASH algorithm can also mine ETHW.

Investment Considerations

Investing in ETHW requires careful consideration. While PoW is often viewed as a more secure consensus mechanism, ETHW's network faces challenges due to its limited number of nodes, potentially affecting security and resilience. The value of ETHW, like any cryptocurrency, is subject to market dynamics including demand, supply, and broader adoption.

Conclusion

ETHW represents a unique chapter in the ongoing narrative of blockchain evolution. It embodies the community's voice in cryptocurrency governance and offers an alternative for those who believe in the continued value of proof-of-work systems. As the crypto landscape continues to evolve, ETHW stands as a testament to the diversity and adaptability inherent in the ecosystem, challenging us to consider the various paths blockchain technology might take in the future.

While ETHW faces significant challenges in terms of adoption and ecosystem development, it continues to attract a dedicated community of miners and supporters. As the cryptocurrency market matures, the role and significance of ETHW will likely continue to be a subject of debate and interest within the broader blockchain community.