Ex-Ethereum Miners Token Hop to Stay Alive After the Merge
Following the Ethereum Merge, only 20% of miners have switched to other proof-of-work networks.
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Nov 11, 2022 at 5:41 p.m. UTC
Nov 11, 2022
After the Ethereum Merge, the Ethereum network transitioned from proof-of-work (PoW) to proof-of-stake (PoS) consensus mechanism, fundamentally changing how Ethereum mining works. In this new system, "mining" is replaced by "staking," where validators participate in securing the network by locking up (staking) a certain amount of Ether (ETH). These validators are chosen to create new blocks and validate transactions based on the amount of ETH they stake and other factors. This process requires significantly less energy than PoW mining and aims to enhance network security and scalability. Validators earn rewards for their contributions, but they risk losing a portion of their stake if they act maliciously or negligently.