Assets, Ethereum

Is Ethereum a PoW?

Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference.

Ethereum is a PoW blockchain, meaning that new blocks are created through a process of mining. Miners compete to find a hash that meets certain criteria, and the winner is rewarded with ETH.

NOTE: Ethereum is not just a Proof-of-Work (PoW) system, it is a hybrid system that also supports Proof-of-Stake (PoS). Ethereum is moving away from PoW towards PoS and users should be aware of the differences between these two systems when considering investing in Ethereum. The risks associated with PoS are different from those associated with PoW and users should be aware of them before investing.

Ethereum’s PoW algorithm is called Ethash, and it was designed to be ASIC-resistant, meaning that specialized hardware is not needed to mine ETH.

ETH has been mined since 2015, and over time the rewards for miners have decreased. Currently, the block reward is 2 ETH, and it is expected to decrease to 0 ETH in the next few years as the supply of ETH approaches its maximum of 120 million.

Ethereum’s PoW algorithm is designed to be ASIC-resistant, meaning that specialized hardware is not needed to mine ETH. This makes it possible for anyone with a computer to participate in mining Ethereum.

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