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As The Merge, Ethereum’s long-awaited update, approaches, the CEO has one of the largest mining pools, Anthill, just announced that his company will invest $ 10 million in the Ethereum Classic ecosystem and continue to fund the project over the long term.
Alternative with potential
Here’s how Leon Lv, CEO of Antpool, took advantage of it. World Summit on Digital Mining in Miami to announce its intention to further support Ethereum Classic with an initial investment of $ 10 million and then continue to fund the project over the long term.
We support the ETC ecosystem and develop high quality PoW projects together！ https://t.co/AHft6WfGES
– ANTPOOL (@AntPoolofficial) July 27, 2022
This $ 10 million The goal is to invite other developers and companies to shape the future of Ethereum Classic. The support of the project will allow its further development in the main network, as well as increase the scalability of layer 2 through suitable solutions. And all this by attracting new projects to the ETC blockchain.
As a bonus, the giant Bitmain, which works hand in hand with Antpool, took the opportunity to announce during this Miami summit that all buyers of its Antminer models can pay after the release of ETC. anthill E9 scheduled for July.
Ethereum Classic will remain a PoW blockchain
While the Ethereum The Merge update aims to create this cryptocurrency. less greedy and therefore more respectful of the environment While competition among miners is waning, Ethereum Classic is not.
In fact, Ethereum Classic is originally an open source version very similar to Ethereum. Both use the proof-of-work (PoW) algorithm verification method. However, the Ethereum update will switch to the verification method Proof of Stake (PoS) where Ethereum Classic will remain on PoW.
This change, while necessary and beneficial to Ethereum in many ways in the long run, is not not without risk. In fact, this update has not happened several times, and the developers, despite being sure, cannot guarantee 100% that this will not affect the projects present on the blockchain.
Hence, Ethereum Classic is convenient, as for many projects it would be very simple. migrate from Ethereum to Ethereum Classic as it is currently the same technology, no risk. So this is a fallback in case Ethereum has problems with The Merge.
Vitalik Buterim likes Ethereum Classic
Ethereum co-founder Vitalik Buterim also loves Ethereum Classic. For this reason, only a few days after talking about it, the information received positive feedback on social networks, the price of ETC has dropped dramatically. went up by $ 27 while the price was close to $ 23.
It must be said that Vitalik Buterim took the opportunity to point out that with the upgrade of Ethereum, Miners using PoW he needs to migrate somewhere else and Ethereum Classic seems like the perfect fit for him. It was even called a “good blockchain” at the EthCC conference held in Paris on 21 July.
So ETC has them. susceptibility Projects and miners who want to use PoW with simple modifications to start mining on this blockchain compared to Ethereum. Furthermore, even co-founder Vitalik Buterim admits that this possible solution is a good alternative for those who do not want The Merge on Ethereum.
Therefore, it is logical that the increase 16% happened on the day of Vitalik Buterim’s speech and 9% weekly for ETC, which appears to be an alternative to the Ethereum project with more potential than expected in the long term.
So now we have to wait to see how things will go at the development level of Ethereum Classic, as well as how The Merge update will impact the blockchain once installed. The price of ETC could rise significantly in the coming weeks.