ETHW fork for 72 hours: market value plummets and miners leave

More than 72 hours have passed since the birth of the Ethereum fork network ETHW (EthereumPow). During this period, ETHW network turmoil continued. First, it used the same chain ID as the SmartBCH testnet, which caused network connection problems. Then the security agency pointed out that ETHW suffered a replay attack and lost 200 ETHW tokens.

In the secondary trading market, the ETHW token generated by the original ETH 1:1 mapping went down after a brief rise. As of September 19, the price of the asset fell to around $5, a drop of more than 80% from the high point on the day of the launch. %.

The continuous decline in asset prices reflects the pessimism of currency holders about its development prospects, and ETHW, which is based on the slogan of safeguarding the interests of PoW miners, is also being abandoned by miners.

2miners data shows that on the day the ETHW mainnet was launched, its entire network computing power reached a maximum of 80.56 TH/s. By September 19, this value had dropped to 29.92TH/s, down 62.8% from the peak, and only 3.89% of the total computing power of 769 TH/s before the Ethereum mainnet merged.

The market value plummeted, miners left, and 72 hours after ETHW forked, the embarrassment was revealed.

The price of ETHW fell all the way after the listing

On September 15, Ethereum completed the merger and upgrade, and the consensus mechanism was changed from PoW (Proof of Work) to PoS (Proof of Stake). In the past 7 years, PoW miners have been responsible for the block packaging and verification of the Ethereum network, and have received generous block rewards and fee rewards. After the merger, Ethereum under the PoW mechanism officially withdrew from the stage of history, but the mining machines and computing power of the original miners did not disappear.

Under the banner of “defending the interests of miners”, KOL Guo Hongcai (Bao Erye) in the early domestic currency circle and Justin Sun, founder of TRON, as community leaders, opened the chapter of forking Ethereum. According to the plan, 24 hours after the completion of the Ethereum merger, the main network of the forked network ETHW (EthereumPow), which continues to maintain the PoW consensus mechanism, will be officially deployed, and then the chain ID of ETHW will be switched. In order to reserve sufficient time, the ETHW mainnet will go live at the designated time after processing 2048 empty blocks.

But a small episode occurred during the ETHW mainnet launch.

On September 16, many users found that they still could not access their blockchain using ETHW’s official mainnet information, and could not connect to their network using crypto wallets. Subsequently, SmartBCH, the BCH public chain expansion plan, pointed out that the network connection problem of ETHW may be due to the use of the same chain ID as the SmartBCH test network.

This issue was subsequently fixed. The ETHW main network was launched, and some of the original miners of Ethereum switched their computing power to the ETHW network, and the maximum computing power of the entire network reached 80.56 TH/s.

At the same time, as a forked network of Ethereum, ETHW also issued token airdrops to all ETH holders 1:1. At present, OKX, FTX, Bitfinex and other trading platforms have launched the ETHW trading market.

According to the law of previous blockchain forks, the price trend after the forked chain token goes online reflects the consensus foundation behind it to a certain extent. On the OKX platform, ETHW opened at a price of $15 and rose to $27.99 after going online, which is far from the price of about $1,600 before the fork of Ethereum. In contrast, ETH maintained its previous price for some time after the merger.

After a short high, the price of ETHW quickly fell, and the closing price of the day fell to $12.08, down 56.8% from the highest point. In the following days, ETHW continued its downward trend. On September 19, ETHW fell to a minimum of $3.88, and then rebounded to around $5.15, which was 81.6% lower than the high on the day of the launch.

Analysts believe that ETHW fell sharply in just 4 days, mainly due to the sell-off of holders who received token airdrops. According to the data of the Ouke Cloud Chain ETHW browser on September 19, after the mainnet went online, the network processed more than 9.56 billion ETHW transactions. According to its price trend, most users chose to sell after receiving the airdrop. out.

Sharp drop in computing power shows miners are leaving

The market sell-off of ETHW reflects that users are not optimistic about the prospects of the forked network, especially on September 18th, a security alert heightened concerns about its security.

According to the monitoring by the security agency BlockSec, some attackers carried out replay attacks on the ETHW chain. Replay attacks usually occur after the blockchain network is forked. Since the addresses and private keys on the two chains are the same, and the transaction format is exactly the same, the transactions on one chain are also completely “legitimate” on the other chain. “of. Transactions initiated on one chain will also be confirmed if replayed on the other chain.

During the fork preparation period, the ETHW team implemented replay protection at the code level, requiring that all transactions must be signed with the chain ID. Still, someone has found a loophole. According to the analysis, the attacker first transferred 200 WETH to the ETH network through the Omni cross-chain bridge of the Gnosis chain, and then replayed the same message on the PoW chain to obtain an additional 200 ETHW.

The attack caused users to question the technical capabilities and security of ETHW. Subsequently, ETHW officially stated that it has tried to contact Omni Bridge to inform the bridge that it needs to correctly verify the actual chain ID of the cross-chain message. ETHW emphasized, “This is not a chain-level transaction replay, but a call data replay due to a flaw in a specific contract.”

Whether it is the use of the same Chain ID as the SmartBCH testnet during the mainnet launch, or the occurrence of replay attacks, the forked ETHW seems unreliable. If these problems are considered minor technical problems that can be solved quickly, then the collapse of people’s hearts is very powerful for ETHW.

After the ETHW mainnet was launched, many mining pools including F2Pool, Poolin and BTC.com announced their support for ETHW mining. The ETHW community also cooperated to launch a backup mining pool, Ethwmine, dedicated to providing long-term mining pool services for ETHW .

These mining pools, which serve miners, hope to continue earning revenue from miners who move to ETHW. However, the computing power of the ETHW network was rapidly lost in just a few days.

According to the data of 2miners on September 19, the computing power of the entire ETHW network was 29.92 TH/s, a 62.8% drop from the peak of 80.56 TH/s after the mainnet went online. According to the assumption before the fork, ETHW will have the opportunity to undertake most of the computing power of the original Ethereum network, but its current computing power level only occupies 3.89% of the total computing power of 769 TH/s before the merger of the Ethereum main network.

In contrast, ETC, RVN, ERGO and other networks that use the same mining algorithm have seen a significant increase in computing power, especially ETC once increased from 50 TH/s before the merger to more than 200 TH/s, which shows that ETHW is not the original Ethereum The only option for miners.

ETHW fork for 72 hours: market value plummets and miners leave

ETHW network computing power has experienced a significant loss

As the price of ETHW continues to fall, more and more miners find this forked chain unprofitable, and it is not surprising that the computing power has dropped sharply. In the context of the weak consensus foundation, the miners that ETHW relies on the most are gradually leaving, casting a haze on the future of this forked chain.

In the consensus of the encryption industry, the value of a new generation of public chains depends on the construction of the ecology on the chain. The more prosperous the ecology on the chain and the more active the activities on the chain, the more the value of the public chain is often recognized. Before the merger of ETH, Uniswap, OpenSea, USDT issuer Tether, USDC issuer Circle and other mainstream DeFi applications and stablecoin issuers stated that they did not support any forked chains, which directly prevented ETHW from inheriting the mainstream of the original Ethereum. On-chain applications. In other words, the current ecology on the ETHW chain is very weak.

According to the data of Ouke Cloud Chain, the number of active addresses on the ETHW chain on September 19 was only 27,100, a decrease of 226,400 compared with the previous day, which indicates that the enthusiasm of users on the chain to participate in ETHW has dropped significantly. In contrast, the number of active addresses on the ETH network during the same period was 487,700, and the number of active addresses on the BNB Chain was 1,426,800.

When the market value of tokens plummets, miners and users leave, the ecological construction on the chain almost needs to start from scratch, and the opening of ETHW is overshadowed. How to gain a foothold in the new and old chains will become its biggest challenge.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/ethw-fork-for-72-hours-market-value-plummets-and-miners-leave/
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