Will blockchain miners lose their jobs after Ethereum completes its "merger" and bid farewell to the era of large-scale mining?

On September 15th at 14:00, the world's second largest blockchain Ethereum "Merge" was completed, and the main network was combined with the PoS consensus layer beacon chain (Beacon chain). Merger has become one of the most important events in the history of encryption by the market. After the completion of the "merger", Ethereum has successfully "merged" from the proof-of-work to the equity certificate. The mechanism after the "merger" will bid farewell to the era of large-scale mining. Reporters from Beijing Youth Daily saw on the blockchain forum that many former blockchain "miners" were lamenting the end of an era. Will blockchain 'miners' who were once popular lose their jobs? What impact will this have on the global mining machinery industry chain?The merger will reduce energy consumption by 99.95%According to OKLink data, Ethereum, the world's most active blockchain network, triggered a merge mechanism at block height 15537393 and produced the first PoS block (height 15537394). Since then, the Ethereum consensus has officially transitioned from PoW to PoS mechanism, completing the "TheMerge" upgrade. This will bring significant changes to the Ethereum network, including a 99.95% reduction in energy consumption and a 90% reduction in ETH issuance. According to CoinMarketCap data, the real-time price of Ethereum is approximately $1590, with a price drop of approximately 1.11% within 24 hours. Afterwards, it regained the $1600 level and had a market value of over $190 billion.Merging new mechanisms to bid farewell to the era of large-scale mining machinery "mining"Ethereum is a public blockchain platform, with its cryptocurrency being Ethereum ETH. Under the traditional "proof-of-work" mechanism, in the past few years, a large number of "mine owners" have purchased high-performance graphics cards to dig ETH mines. For miners, if they mine on the Ethereum main network, after merging, each network will operate entirely based on the PoS proof of rights mechanism. At that time, the traditional proof-of-work mining will no longer be available on the Ethereum network. Ethermine, the world's largest Ethereum ore pool, announced the termination of proof-of-work related services, and will no longer follow the proof-of-work bifurcation.Ethereum originally used the PoW (proof of work) proof-of-work mechanism, and the "miners" of the node competed for the packaging right according to the computing power and obtained the packaging reward. Nowadays, relying on the PoS (proof of stack) equity proof mechanism, Ethereum bid farewell to the era of large-scale mining machines "mining". Holders can "mine" by pledging Ethereum tokens (ETH), with a pledge threshold of 32 ETHs.Will the merger of Ethereum result in a significant unemployment of traditional blockchain miners?Will the merger of Ethereum result in a significant unemployment of traditional blockchain miners?MessariThe Merge 190 POW GPU Web3

On September 15th at 14:00, the world's second largest blockchain Ethereum "Merge" was completed, and the main network was combined with the PoS consensus layer beacon chain (Beacon chain). Merger has become one of the most important events in the history of encryption by the market. After the completion of the "merger", Ethereum has successfully "merged" from the proof-of-work to the equity certificate. The mechanism after the "merger" will bid farewell to the era of large-scale mining. Reporters from Beijing Youth Daily saw on the blockchain forum that many former blockchain "miners" were lamenting the end of an era. Will blockchain 'miners' who were once popular lose their jobs? What impact will this have on the global mining machinery industry chain?

The merger will reduce energy consumption by 99.95%

According to OKLink data, Ethereum, the world's most active blockchain network, triggered a merge mechanism at block height 15537393 and produced the first PoS block (height 15537394). Since then, the Ethereum consensus has officially transitioned from PoW to PoS mechanism, completing the "TheMerge" upgrade. This will bring significant changes to the Ethereum network, including a 99.95% reduction in energy consumption and a 90% reduction in ETH issuance. According to CoinMarketCap data, the real-time price of Ethereum is approximately $1590, with a price drop of approximately 1.11% within 24 hours. Afterwards, it regained the $1600 level and had a market value of over $190 billion.

Merging new mechanisms to bid farewell to the era of large-scale mining machinery "mining"

Ethereum is a public blockchain platform, with its cryptocurrency being Ethereum ETH. Under the traditional "proof-of-work" mechanism, in the past few years, a large number of "mine owners" have purchased high-performance graphics cards to dig ETH mines. For miners, if they mine on the Ethereum main network, after merging, each network will operate entirely based on the PoS proof of rights mechanism. At that time, the traditional proof-of-work mining will no longer be available on the Ethereum network. Ethermine, the world's largest Ethereum ore pool, announced the termination of proof-of-work related services, and will no longer follow the proof-of-work bifurcation.

Ethereum originally used the PoW (proof of work) proof-of-work mechanism, and the "miners" of the node competed for the packaging right according to the computing power and obtained the packaging reward. Nowadays, relying on the PoS (proof of stack) equity proof mechanism, Ethereum bid farewell to the era of large-scale mining machines "mining". Holders can "mine" by pledging Ethereum tokens (ETH), with a pledge threshold of 32 ETHs.

Will the merger of Ethereum result in a significant unemployment of traditional blockchain miners?

Will the merger of Ethereum result in a significant unemployment of traditional blockchain miners?根据Messari估算，以太坊合并（The Merge）将迫使价值 190 亿美元的 POW 挖矿从业者另谋出路。矿工虽然可以将部分 GPU 算力贡献给 一些Web3 协议，但是这些协议很难承接全部算力。从数据上看，除 ETH 之外的 GPU 可开采代币的总市值仅为 41 亿美元，约占 ETH 市值的 2%，ETH 挖矿收益占 GPU 矿工日收入的 97%，这意味着大多数现有的以太坊矿工无法在市场上找到具有同等经济效益的 POW 矿币。

According to a reporter from Beiqing Daily, on April 11, 2022, Ethereum completed its first shadow fork and launched a merger testing network that transitioned from PoW to PoS. In September 2022, Ethereum completed its final shadow fork, and the network was ready to migrate. The pace of Ethereum's "merger" was approaching step by step, entering the countdown. For the motivation behind this consensus algorithm layer change, the market generally believes that it can reduce the energy consumption caused by running mining machines, change user transaction costs (GasFee), assist in achieving Ethereum expansion, and improve system throughput.

According to Sun Yulin, a senior researcher at the Ouke Cloud Chain Research Institute, the graphics card market may face a certain impact as a result. Some miners said that they would switch to "Ethereum Classic (ETC)" (note: some proof-of-work miners have said that they intend to resist the merger and have started to jump back to the older version of Ethereum blockchain, now known as Ethereum Classic) to continue mining. In addition, the merger of Ethereum also provides opportunities for the Stacking market, and some Ethereum mining pools have also launched transformation plans related to Stacking as a result.

How will Ethereum's "merger" affect the mining machinery industry chain?

What impact will the epic "merger" of Ethereum have on China's related industrial chain? In 2017, with the rise of blockchain worldwide, the trend of "mining" services began to emerge. Huaqiang North computer merchants, who hold a large number of high computing power game graphics cards, used their resources to transform into "mining". The "mining boom" has brought huge profits to Huaqiang North Computer and graphics card dealers. However, after the "tide" receded, the prices of graphics cards plummeted, and with the impact of policies, "miners" turned to remote areas for covert operations.

Not only miners are affected, but mining machine manufacturers are no longer having a good time. On August 26th of this year, according to Nvidia's second quarter financial report, the revenue of OEM and other mining chip CMP related businesses decreased by 66% year-on-year.

A former blockchain miner told Beiqing Daily that he has been away from this industry for two years, but still remembers the crazy "miners" who had dreams of becoming rich and bustling in the computer room at that time. The merger of Ethereum marks the end of a blockchain mining era

Article/Zhu Kaiyun, reporter of Beijing Youth Daily

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