BTC Wires

A Million Dollar Bet On Ethereum Staying As A Proof-of-Stake Algorithm

Imagine a scenario in which Ethereum never switches its main consensus algorithm!

It’s a thought that may sound impious to the developers fabricating the world’s second-largest blockchain, where plans have been laid for a change far from bitcoin’s proof-of-work model to a more libertarian alternative. However, business visionaries appear to be betting that between now and that splendid future, a little fortune may be waiting.

Effectively, a few mining organisations have put millions in building specialised mining chips for ethereum, apparatus that will just function as long as the system pays out new digital currency to the individuals who dedicate computing hardware to the exertion.

One such investor is the CEO and founder of Linzhi, Chen Min. This Shenzhen-based startup has spent $4 million in the quest for designing the fastest mining chip, or ASIC, for ethereum. Chen was already the lead ASIC designer at Canaan Creative which is one of the three mining firms which have commanded the production of crypto hardware over the last decade.

In any case, Chen is left to attempt her turn in making machinery for ethereum, as of now putting plentifully in the objective.

Chen said, “The cost to get to first silicon and sample machines is roughly $4 million. Additionally, we have our ongoing cost of operations, salaries, office, which are all modest, lean and efficient.”

Declared in September, Linzhi’s ASIC guarantees to surpass past ethereum ASIC designs, including high changes to energy efficiency and computing power. Still, the mining chip will just function on ethereum if the blockchain keeps its present code-base.

Chen isn’t much concerned about it.

“I don’t know if [ethereum] will or will not switch to proof-of-stake,” she told. “Proof-of-stake has a lot of problems.”

Proof exists that Linzhi isn’t the only one in this position. As detailed, mining giant Bitmain discharged its ethereum miner, the Antiminer E3, in March, while Innosocilion declared three ethereum miners in July.