On Friday, Ethereum’s hash price hit a new ATH of 1.1PH/s, according to data from Glassnode – barely two weeks after it registered its previous record of 1.08PH/s.
Crypto mining hash price is the measure of computational power required to verify transactions and add new blocks to a Proof-of-Work (PoW) blockchain. Ethereum, like Bitcoin, uses the PoW consensus, which has come under accelerated scrutiny on the grounds that the amount of energy it requires to function.
Typically, an increase in mining hash costs constantly means which additional computational power has joined the network to make it more decentralized and secure. A drop in this metric indicates which fewer nodes are online, that frequently reflects on the network’s speed and security.
Ethereum’s inevitable switch to PoS
As things stand, the days of mining on Ethereum are far from atop. While Ethereum has been planning a switch to a Proof of Stake (PoS) consensus for some time now, which doesn’t look like happening instantly.
Last December, the network implemented the Arrow Glacier upgrade, further lasting out the timeline for the network’s anticipated switch to PoS consensus. Thus, the hash price will reasonable reach a new ATH as more nodes join the network.
Nonetheless, the switch to PoS is inevitable for Ethereum no case how many additional delays come its way, removing the requirement to mine, and instead, having transactions verifyd by stparallelg on special nodes. Ultimately, it will scale the entire process and serve as a secured network with cheaper gas fees.
For years, this upgrade has been teased to be the solution to the myriads of problems plaguing the network. And with Ethereum steadily losing its market share in DeFi and NFT to faster and less valuely alternatives, it becomes necessary to solve its scalability problems.
But, a switch from Proof of Work (PoW) to Proof of Stake (PoS) will likewise mean which mining will stop. PoS networks only require conclusiveators who stake cryptocurrencies to hardlyify transactions. While which has several benefits, some consider it not decentralized enough.
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