Fran is a television writer and reporter at CoinDesk. It does not own any cryptocurrencies.
According to Anthony Di Lorio, one of the co-founders of Ethereum, the long-awaited Ethereum merger will mark the beginning of a period where many people will compete to make the most of technological change.
“You’re going to see a lot of people coming out of the woodwork and trying to do something around this major event that’s happening now in order to somehow capitalize and push a particular agenda or fork that’s coming out of it.” , Di Lorio told CoinDesk TV’s “First Mover” show on Friday.
Di Lorio’s comments came days before the expected migration of the Ethereum blockchain from a proof-of-work (PoW) protocol to a faster and more energy-efficient proof-of-stake (PoS) protocol. Still, some industry leaders believe there is still plenty of room for PoW.
Tron founder Justin Sun bought millions of dollars worth of ether (ETH) before the merger and is campaigning for a hard fork of the Ethereum blockchain that would maintain the PoW consensus.
Di Lorio, who is now CEO and founder of Decentral and Jaxx, said proof-of-work may not have the backing it needs to remain a force, given “the amount of time and energy expended by [Fondation] Ethereum” and the number of “major players who consider PoS to be a superior system”.
Mr. Di Lorio added that since the inception of Ethereum, it was clear that the network would one day switch to a PoS protocol.
“It’s a very important thing that has been discussed from the very beginning and has been implemented and now it’s being implemented,” he said.
The “difficulty bomb” the developers had placed in the code was a warning sign to miners that one day the transition would happen, Di Lorio said. The difficulty bomb, as Ethhub explains, is intended to “freeze” the chain by increasing “the difficulty level of puzzles” for the proof-of-work algorithm, which would result in reduced block production times and reduced rewards for miners.
“Proof of work will disappear, but not before people are able to take advantage of this,” Di Lorio said.
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