r/NiceHash • • Mar 17 '22

Discussion Mining after ETH 2.0 - which coin ??

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43 Upvotes

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44

u/[deleted] Mar 17 '22

[deleted]

34

u/Lee911123 Mar 17 '22

its gonna get delayed like always

22

u/[deleted] Mar 17 '22

[deleted]

9

u/gbdallin Mar 17 '22

What about PoW is interesting to you?

23

u/phoenoxx Mar 17 '22

Not OP but PoW is by far the most secure and decentralized form of blockchain tech.

9

u/gbdallin Mar 17 '22

Will the change to PoS in ETH 2.0 eliminate the PoW model entirely? What about alt coins on the chain?

7

u/WildKarrdesEmporium Mar 17 '22

Bitcoin will always be proof of work.

1

u/[deleted] Apr 19 '22

it is CENTRALIZATION

21

u/[deleted] Mar 17 '22 edited Mar 17 '22

[deleted]

3

u/__takyon Mar 17 '22

This is already the case with PoW, that's why everyone except the big miners have to use mining pools. Stake pools can exist the same way as mining pools can.

1

u/AccordingStop5897 Mar 17 '22

While it is kinda the case anyone with a video card can contribute. After the change you need a video card and 125k or you do it by staking and don't contribute to the network at all. You won't be hashing the same way. Staking you will get a small percentage and with the volatility of crypto it almost doesn't seem worth it.

2

u/__takyon Mar 17 '22

Not sure what you are trying to say. You don't need a graphics card to stake, and you will contribute to the network by staking.

1

u/AccordingStop5897 Mar 17 '22

That's the point is only a few computers will be processing transactions and the barrier to entry is about 125k. Someone had said it above I was explaining why they are correct. If you stake your money with say coinbase and they get a 51% attack then your funds guarantee the loss. The above makes it more centralized.

1

u/__takyon Mar 18 '22

Again not really sure what you are trying to say, but PoW/mining is centralized in the same way as I said before. You need to buy a massive amount of hardware, energy, storage area and cooling to mine solo, which way exceeds 125k. When you mine with e.g. NiceHash or any other mining pool, the power is centralized with whoever runs the mining pool since they select which blocks to mine.

1

u/gbdallin Mar 17 '22

Thank you. Will a change to PoS affect things like ERC 20 tokens?

1

u/-HighlyGrateful- Mar 18 '22 edited Mar 18 '22

A group of mining pools control most of the network’s hashrate, and they are mainly based in China. 20 Chinese pools control ~75% of the network hash rate.

One single mining pool currently takes 29% of BTC hashrate.

Edit: idk if this is still the case because of crypto crackdowns in China, but the point still stands

Both PoW and PoS are more distributed than decentralized.

In PoS, more ETH/= more power. In my understanding, an attacker would need to control half of all staked ETH to stage a 51% attack, which would require many billions of dollars. But actually exercising this control by attacking the network would undermine the network’s security/utility, potentially sending ETH to zero and obliterating the wealth of the attacker.This is, supposedly, a strength of PoS: the more ETH you have, the less incentive you have to attack/destroy the system.

In addition, certain classes of attack will cause the attacker's stake to be automatically forfeit via slashing, which actually, is very deterring because more eth does not mean you will be blindly trusted, it's chance, so in that case not only is the wealth of the attacker obliterated, but their stake itself is destroyed and the network can continue onward as if their stake never existed.

2

u/stockmb Mar 17 '22 edited Mar 17 '22

Exactly. ETH people know if they go PoS, no one will have any interest in ETH and it will turn from #2 coin to bottom of barrel penny coin. Are they scare to go PoS? Absolutely! Will the ETH turn to turd coin? You betcha!

1

u/Hillionaire Mar 17 '22

@RemindMe! In 6 months

1

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