Ethereum Classic is on the rise – The network Ethereum (ETH) has completed its transition to Proof of Stake. Consequently, miners around the world have had to fall back on other cryptocurrencies to mine. Among the big winners of this transition, we find Ethereum Classic, which is coming back stronger than ever.
Ethereum Classic: the new mining outsider
Ethereum Classic was born in 2016 following the now historic incident of The DAO hack.
So, some time after the launch of Ethereum, several developers came up with the idea of creating a decentralized investment fund in the form of a DAO.
However, a reentry attack undermines the plans of the developers and causes the loss of millions of dollars. Faced with this tragedy, part of the community decided to fork the channel. This will give birth on one side to Ethereum (ETH) on the other to Ethereum Classic (ETC).
For a long time, Ethereum Classic received little hype. Indeed, all of the innovation was rooted in Ethereum (ETH). However, following the deployment of The Merge and the transition to Proof of Stake, the network Ethereum Classic finds a second youth.
Thus, since the beginning of July, the hashrate of Ethereum Classic has been multiplied by 12going from some 20 TH/s to an ATH of 244 TH/S.
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ETC more secure than ever
Faced with this dizzying increase in hashrate, the network Ethereum Classic finds itself more secure than ever.
Indeed, the network had already suffered several times from its low hashrate. Thus, in the month of August 2020, the network was the target of 3 type attacks 51%.
As a reminder, these attacks occur when an actor manages to obtain more than 51% of the computing power of the network. Once in the majority, he can then reorganize the blocks as he sees fit, opening up the possibility of double spending.
However, this situation now seems to be history. Indeed, according to data compiled by Crypto51it currently costs $44,932 per hour to perform a 51% attack on Ethereum Classic. Therefore, this makes ETC the third most expensive cryptocurrency to attack behind Litecoin and Bitcoin.
In most cases, 51% attacks are carried out through services such as NiceHashwhich allows anyone to rent hashing power for a set amount of time.
” Most major cryptocurrencies have sufficient mining capacity. This makes it extremely expensive to purchase the hardware needed to carry out a 51% attack. Smaller cryptocurrencies have less hash power securing the network, making it possible to rent the hash power from miners on a service like Nicehash for a few hours. This greatly reduces the costs of an attack. »
In addition, an attacker will have to find a way other than NiceHash to acquire the hashrate necessary to carry out a 51% attack on Ethereum Classic. In fact, only 2% power necessary for the attack can currently be rented through NiceHash.
Flux and Ravencoin grab the crumbs
At the same time, other cryptocurrencies also benefited from the stoppage of Proof of Work on Ethereum (ETH).
So the Flow saw her hashrate multiplied by 7 since July. This went from 1 to 7 MS/s.
For its part, the hashrate of Ravencoin has recorded a 700% increase since the beginning of July.
Some Ethereum (ETH) hashrate has also been redirected to its Ethereum Pow fork.Several of the major mining pools have migrated some of their power there.
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