As the release date approaches Ethereum 2.0 The relevance of Ethereum miners after the ETH update remains a matter of debate.
Is it true that some people are going to quit mining? There are so many expectations in the ETH community regarding the release of Ethereum 2.0. This expectation is uncertain as to the relevance of the Ethereum miners and their role in the community since the release of Ethereum 2.0.
A look at the concept on which the new version of Ethereum is built will help to partially solve this problem. The question of ethics, however, lies in the utilitarian basis on which the supposedly best version of ETH is built - does this take business away from the miners?
Ethereum 1.0 vs Ethereum 2.0 Comparison
The current version of Ethereum, also known as Ethereum 1.0, works according to the Proof of Work (PoW) model. Within this system, physical computing power and electricity are required to generate blocks on the Ethereum blockchain. Computer power is achieved with the help of miners, in combination with the necessary electricity, the PoW model is complex and expensive, reducing the efficiency of the network as a whole.
Ethereum 2.0 is designed to work on the Proof of Stake model (PoS), a decentralized system that guarantees increased security, energy efficiency and scalability. Commonly preferred as a positive upgrade to PoW Ethereum 1.0, PoS Ethereum 2.0 will rely on validators (decentralized miners) and Ether deposits as a potential reward.
Another notable update to the Ethereum network is the introduction of segment chains, which are designed to contribute to faster throughput and transaction efficiency.
Implications for Miners
Based on the above, the ratio of miners to the new version at its launch will be very low. The more important question is what will be the overall value of the miners after that?
The advent of Ethereum 2.0 will not make the old version completely useless from the start. Ethereum 1.0 will continue to function normally, but this will not interfere with the plans outlined. Ethereum 1.0 aims to be the first shard in Ethereum 2.0 after launch Phase 1. Until then, the Ethereum 1.0 chain will continue as it is now and will undergo improvements to eventually become a fragment of Ethereum 2.0. Meanwhile, ETH miners will retain their relevance, but what is the essence of the enterprise with an expiration date?