The PoW Landscape in the Aftermath of The Merge


METADATA ONLY
Loading...

Date

2025

Publication Type

Conference Paper

ETH Bibliography

yes

Citations

Altmetric
METADATA ONLY

Data

Rights / License

Abstract

On 15th September 2022, The Merge marked the Ethereum network’s transition from computation-hardness-based consensus (proof-of-work) to a committee-based consensus mechanism (proof-of-stake). As a result, all the specialized hardware and GPUs that were being used by miners ceased to be profitable in the main Ethereum network. Miners were then left with the decision of how to re-purpose their hardware. One such choice was to try and make a profit mining another existing PoW system. In this study, we explore this choice by analyzing the hashrate increase in the top PoW networks following the merge. Our findings reveal that the peak increase in hashrate to other PoW networks following The Merge represents an adoption of at least 41% of the hashrate that was present in Ethereum, with 30% thereof remaining over 5 months later. Though we measure a drastic decrease in profitability by almost an order of magnitude, the continued presence of miners halts claims that power consumption was instantly addressed by Ethereum’s switch to PoS.

Publication status

published

Book title

Financial Cryptography and Data Security. FC 2024 International Workshops

Volume

14746

Pages / Article No.

281 - 292

Publisher

Springer

Event

5th Workshop on Coordination of Decentralized Finance (CoDecFin 2024)

Edition / version

Methods

Software

Geographic location

Date collected

Date created

Subject

Blockchain; Proof-of-work; Mining; Ethereum; Measurements

Organisational unit

03604 - Wattenhofer, Roger / Wattenhofer, Roger check_circle

Notes

Conference lecture held on March 8, 2024.

Funding

Related publications and datasets

Is new version of: 10.48550/ARXIV.2310.01028