Traditional mining is ‘essential’ part of Ethereum, says billionaire founder of Tron

Admin

As the Ethereum (ETH) community prepares for the blockchain’s long-awaited “Merge” update, which envisions a transition to a proof-of-stake (PoS) system, the controversial Tron (TRX) billionaire founder Justin Sun said he thinks the traditional mining system, which will be abandoned, is an “essential” component of the network.

The cryptocurrency entrepreneur stated that he still advocates the Merger – which will make the Ethereum blockchain faster and cheaper – as long as things go according to plan. But that could be because he promised to support what he calls “Ethereum PoW”, which would be the new network created in the event of a “duplication” of Ethereum.

Ethereum “duplication” can happen if enough network participants decide not to migrate to the updated version.

Tron founder told CoinDesk that he intends to make the USDD stablecoin, which he helped design, become the first in the Ethereum POW ecosystem. Its exchange, Poloniex, has also said that it will be the first to support Ethereum POW’s native currency, ETHW.

According to Sun, no other stablecoin issuers still publicly support Ethereum POW, a blockchain he said will be left behind after the Merger. “We want to be the first solution when using Ethereum’s proof of work after the Merge,” he said.

Read more:
• What the Ethereum “Merge” Update Means for Miners

“I think decentralized stablecoins like [a baseada na rede Tron] USD, [que é um] decentralized US dollar, are still essential to our industry because, as we all know, every component of [finanças descentralizadas] today they are decentralized…except for stablecoins,” he stated.

USDD is an algorithmic stablecoin, just like Terra USD (UST), which collapsed in May.

PoW support

Sun’s assessment is that a PoW version of Ethereum could be a viable competitor even after the vast majority of Ethereum apps and developers migrate to the new version.

“Proof of work really provides a very good foundation for the Ethereum infrastructure,” he said. Not only is it tested and proven, he added, it is likely “essential” that the entire “cryptocurrency industry” has an alternative blockchain that supports proof-of-work smart contracts.

He noted that the field is littered with proof-of-stake networks, including Solana (SOL), Avalanche (AVAX) and the network he founded, Tron. Meanwhile, most PoW chains – such as Monero (XMR) and Bitcoin (BTC) – are not useful for building applications or supporting complex economies like the one seen in decentralized finance (DeFi).

Sun, however, avoids taking into account that the new ETH duplicate that may soon emerge, ETHW, will suffer the same problems that Ethereum wants to solve with the upgrade, such as high network fees and low transaction speeds.

In addition, he said that ETHW would not be pre-mined, meaning everyone who had Ethereum before the Merger will receive the new token for free in an airdrop once the new network emerges. No developer will have “more ETHW than other people,” Sun said.

How far will cryptocurrencies go? What’s the best way to buy them? We have prepared a free class with step by step. Click here to watch and receive InfoMoney’s cryptocurrency newsletter

Next Post

If You've Bought These 5 Cryptocurrencies, You're Rich Right Now

Of course, the first thing that we recommend from here is that, if you are going to enter this complex world of cryptocurrencies, you should first inform yourself well. Otherwise you have many ballots to lose those invested savings in a resounding way, with the annoyance that it can bring […]
CoinMarketCap cryptocurrency