Circle Announces Full Support To Upcoming ETH Merge

Circle Announces Full Support To Upcoming ETH Merge
  • Chinese Ethereum miner Chandler Guo has been the driving force behind the movement.
  • The ETHPOW coin would be created as a result of the proposed fork.

During the much-anticipated merging ceremony scheduled for September 19, the stablecoin provider Circle declared its plans to fully support Ethereum’s switch to a proof-of-stake (PoS) chain. There is presently a total of $54.2 billion in market value for the firm’s stablecoin USDC. There is rising conjecture that the merging event may also lead to another Ethereum fork, keeping the mining-intensive PoW consensus method alive.

The announcement read:

“We understand the responsibility we have for the Ethereum ecosystem and businesses, developers and end users that depend on USDC, and we intend to do the right thing.”

Miners at Significant Loss

Validators, or people who put 32 Ethereum into the network to ensure the validity of transactions, will replace miners after the merger. Thus, any Ethereum mining organization with a large quantity of hardware would be rendered useless.

Chinese Ethereum miner Chandler Guo has been the driving force behind this movement, according to a recent Twitter message from the influential Chinese miner. The ETHPOW coin would be created as a result of the proposed fork.

Circle’s announcement further read:

“While we don’t speculate on the possibility of forks post Ethereum Mainnet merge, USDC as an Ethereum asset can only exist as a single valid ‘version,’ and as stated previously, our sole plan is to fully support the upgraded Ethereum PoS chain.”

Due to Ethereum developers being optimistic that the merger will take place on or around September 19, the price of ETH has increased. As the name implies, the “merge” is a modification to the Ethereum mainnet’s protocol that will bring together the present ‘proof of work network with the ‘proof of stake’ beacon chain. As a result of the integration, Ethereum’s long-awaited transition to proof of stake will finally be complete.

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An engineering graduate who is passionate about writing and loves the very existence of crypto. Trading forex currency keeps me busy when I am not writing and analysing the crypto world.