The issuer of USDT (the biggest stablecoin across the world), Tether, has pledged to support the approaching Merge of Ethereum. This move takes both the stablecoins taking into account USDC as well as USDT to the same point, minimizing the probabilities regarding a likely aggressive hard fork that is to be witnessed in September.
Tether Pledges to Support Ethereum’s PoS Conversion
An announcement was made on Tuesday where Tether stressed that the platform considers it noteworthy not to originate any damage or confusion in the ecosystem of Ethereum by weaponizing the unique transition thereof. The stablecoin issuer stated that it will keenly abide by the preparation as well as the progress of the respective event along with providing support for PoS Ethereum while moving according to the official schedule.
Although the miners might attempt to keep on utilizing the proof-of-work chain of Ethereum, their effectiveness is very improbable as the prominent providers of stablecoins are presently indicating to support the Merge. Ethereum is moving toward altering the consensus algorithm of the venue to Proof-of-Stake, to leave the extreme power-consuminag proof-of-work consensus mechanism. Thus, as soon as the Merge takes place, the PoW miners on the network will turn obsolete as a diverse set of network members called “validators” will achieve the consensus.
In this respect, recently some well-known figures existing in the mining community of China have asserted to fork the Ethereum network to continuously run its proof-of-work version even following the official transformation of the blockchain into proof-of-stake. Justin Sun, the founder of Tron, has mentioned supporting this type of plan.
PoW Miners and Enthusiasts Endeavor to Maintain Its Position
The decision of Tether to support the future PoS chain of Ethereum rather than a likely PoW chain raises apprehensions regarding the long-term feasibility of the initiative led by the miners, as none of the prominent stablecoin issuers will have any supporting reserves. Though ETHW, a token to deal with the proof-of-work chain, has been listed by the crypto exchanges Poloniex and BitMEX, considerably less interest has been gained by it up till now.
Vitalik Buterin, the creator of Ethereum, admitted on Friday in a press meeting that in the case of further advancement in the proof-of-work fork, a great number of applications would be available anyway. Nonetheless, the Ethereum founder expressed that his apprehension is not regarding a fork that would damage the Ethereum Merge. As per Buterin, the majority of the applications are at the moment backing proof-of-stake, and the individuals and entities in support of a fork are not many.
The leader of the Flashbots strategy as well as a research collaborator serving at Hasu tweeted that no one among the community of Ethereum wishes to remain a part of the PoW consensus, apart from those who are already mining on the network. In his words, the respective fork chain counts as an enormous snare, and the traders, exchanges, and miners are attempting to discuss it to fulfill their own interests.