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Binance, the world’s largest exchange by trading volumes, has hinted that it might support the Ethereum proof-of-work fork. The controversial fork dubbed ETHPoW was proposed by an Ethereum miner who opposed the Ethereum Merge that will transition the network to a proof-of-stake (PoS) consensus.
Binance might support the Ethereum PoW fork
Binance announced that it would support the Ethereum Merge. Ethereum developers had provided September 19 as the provisional date for the Merge that will move Ethereum from PoW to PoS.
Binance also said it might support the “merge resistors” that plan to continue using the Ethereum PoW blockchain and create a fork of the network and currency. In the statement released by Binance on Wednesday, if any forked tokens resist the Merge, Binance will evaluate the support for the distribution and withdrawal of the forked cryptocurrencies.
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The company also said that all the forked tokens would go through the same rigorous listing review process as any other cryptocurrency. Binance marks the largest crypto player that has confirmed support for the Merge.
In September this year, Ethereum is slated to upgrade to ETH 2.0. Ethereum will switch from a PoW blockchain to a PoS network and remove the need for miners on the network. The validators will also ensure the network is secure by locking up the tokens owned by the network.
As a PoS network, the Ethereum network will be kept secure by locking up cryptocurrencies. The change is expected to solve several Ethereum network issues, such as boosting speed and making the network more scalable and energy efficient. Those supporting the Merge have also said that the upgrade will make Ether a deflationary cryptocurrency.
Ethereum Merge will phase out miners
While the Ethereum Merge will benefit network users, it will negatively affect the network miners that rely upon the mining rewards as their source of income. Earlier this month, Chandler Guo, a Chinese crypto miner, announced that he would resist the Merge by maintaining the original proof of work Ethereum network.
Guo said that forking the Ethereum network would keep the PoW version of the Ethereum network and ensure that miners are not thrown out of business. Guo has now confirmed that he will support the Merge, and the new network will be known as ETHPoW, while the new coin will be known as ETHW.
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