Ethereum, the second-biggest crypto blockchain project in the world, recently concluded the process of combining the proof-of-work platform with the Beacon Chain called The Merge.
As a result, Ethereum has moved from being a highly carbon-intensive platform into a clean proof-of-stake (POS) network. While many developers have welcomed the shift, some believe that proof-of-work (PoW) is a more secure platform. This led to the creation of the Ethereum Proof-of-Work, otherwise known as Ethereum PoW.
This article discusses what the Ethereum POW is and where and how to buy the ETHW crypto token.
Where to Buy EthereumPOW ETHW
This section is our top picks of where and how to buy the EthereumPOW ETHW Crypto token. We chose these based on our experience of using them and considered fees, security, payment options and reputation.
- Kraken: Top Platform With High Liquidity
- FTX: Great Exchange for Newbies & Advanced Users
- Poloniex: Easy Exchange With Lots of Listings
- Bitfinex: Well Established & Trusted Exchange
Kraken: Top Crypto Platform with High Liquidity
Founded in 2011, Kraken is one of the oldest and most popular cryptocurrency exchanges currently in operation.
The exchange has built a reputation as being a secure destination for anyone interested in trading cryptocurrencies and it is also a popular choice for both traders and institutions across a variety of locations.
Read: Our Full Kraken Review Here
Kraken retains an international appeal and provides efficient trading opportunities in numerous fiat currencies. Kraken is also the current world leader in terms of Bitcoin to Euro trading volumes.
Kraken is most well known for its Bitcoin and Ethereum to cash (EUR and USD) markets; however a wide range of both fiat and cryptocurrencies are tradable on the platform
Pros
- Dedicated service for institutions
- Great for beginners to use
- High trading liquidity
Cons
- The lengthy ID verification process
FTX: A Top Exchange
FTX is one of the very best exchanges to purchase coins & tokens. It is a leading centralized multi-assets exchange that offers derivatives, volatility products, NFTs, and leveraged products. FTX also supports the most commonly traded cryptocurrencies.
Read: Our Full FTX Review Here
FTX’s wide range of tradable assets and user-friendly desktop and mobile trading platforms attracts all types of crypto investors from all levels, including newbies to well-experienced professionals. With support for over 300 cryptocurrencies for spot trading, FTX has one of the strongest bases of coins.
FTX does not have a minimum deposit balance. Maker trades on FTX costs between 0.00% and 0.02%, while taker fees costs between 0.04% and 0.07%. There is also a $75 charge for any withdrawals less than $10,000. Deposit channels vary from bank wire and bank instant deposits to debit/credit card to wire transfer and other methods like silver exchange network (SEN) and signature SIGNET.
FTX implements two-factor authentication (2FA) protocol for security when signing up for a new account. Additional security features include sub-accounts with configurable permissions, withdrawal address and IP whitelisting, and Chain analysis to monitor any suspicious activity. Also, this exceptional broker maintains its own insurance fund. All these security integrations are by standard requirements.
FTX operates in several countries, and US-based traders can use FTX.US — a fully regulated subsidiary that enables seamless trading services to residents of the United States of America.
Pros
- Large selection of cryptocurrencies and other digital assets
- Very competitive fees
- Great trading platforms
- Offers crypto derivatives
Cons
- FTX.US has limited coins
Poloniex: Easy Platform With Lots of Listings
Poloniex is one of the oldest Bitcoin exchanges in the cryptocurrency industry. The platform started operating in 2014 and has enjoyed a checkered trading history.
Despite this, Poloniex has continued to attract customers due to its low trading fees and is a gateway into Tron blockchain’s series of decentralised services.
Read: Our Full Poloniex Review Here
The platform’s popularity grew due to its low trading fees, sizable support of crypto assets, and zero requirement for verification. The lack of a proper know-your-customer (KYC) framework was due to less regulatory pressure to verify the real-world identities of customers at the time.
The platform is suitable for beginners and advanced users as it is easy to use and offers multiple trading options – including crypto-to-crypto trades, crypto-to-fiat trades, and margin and futures trading. The platform comes with one of the lowest trading fees in the emerging crypto market.
Pros
- Lots of Listings
- Low Trading Fees
- Staking Rewards
- Crypto Futures
- Well Established
Cons
- Not for USA Users
Bitfinex: A Trusted Exchange
Based in Hong Kong, Bitfinex is owned and operated by iFinex Inc – a financial services company that also owns Tether Limited, the issuer of the USDT stablecoin. The broker is popular for having one of the most liquid order books in the market, ensuring that users looking to buy and sell crypto have no trouble getting it done.
Like many other top brokers, Bitfinex offers a versatile platform for anyone looking to enter the crypto market. Investors can buy and trade crypto, stake cryptocurrencies, and lend their coins to earn returns.
Read: Our Full Bitfinex Review Here
Ease of use is impressive on Bitfinex, with the broker combining an intuitive platform with a low deposit threshold. Deposits on Bitfinex can be made through direct crypto transfers, wire transfers, and card payments. Card payments are processed through a third party, so investors might have to pay more fees.
Besides its trading interface, Bitfinex provides easy access to services like margin trading, derivatives offerings, and lending. Investors looking to make high-volume purchases can use Bitfinex’s OTC trading service, while those looking for low-risk gains can use the broker’s staking protocol.
Bitfinex uses a maker-taker fee structure for its trades. The fees range between 0% and 0.2%, with fees reducing as investors’ order volumes increase. Also, the exchange doesn’t charge any fees for large orders through its OTC desk. Bank wires incur a 0.1% fee for deposits and withdrawals – although expedited withdrawals carry a charge of 1%. Crypto withdrawals incur a small fee, depending on the coin being withdrawn.
The exchange protects user funds and data using 2FA, advanced API key permissions, and the storage of 99% of funds in cold storage.
Pros
- Easy-to-use interface
- Impressive staking protocol for PoS coins
- Highly liquid order book
- High leverage for derivatives trading
- Unlimited withdrawals
Cons
- Higher costs for card transactions
What is EthereumPoW (ETHW)?
EthereumPoW is a clone of the proof-of-work (PoW)
blockchain used by the Ethereum network before the switch to a proof-of-stake (PoS) consensus algorithm.
The platform preserves the functionality of the Ethereum network before its switch to PoS. Some members of the mining communities who cannot profit from Ethereum’s new protocol support EthereumPoW.
The native token of the blockchain, ETHW, can be used to buy products and services from decentralised applications (dApps) created on the platform. The token is also useful to cover network transaction costs and receive rewards for mining to secure the protocol.
Info On Project
Ethereum switched from a so-called proof-of-work system to a proof-of-stake mechanism to conserve energy and secure the network. However, a section of the blockchain’s legacy computing operations declined to take part in the software update known as the Merge.
A team of miners led by Chandler Guo opposed Ethereum’s transition to a more energy-efficient network security method, claiming that Ethereum 2.0 will make crypto miners obsolete. Guo is a seasoned Ether miner and major supporter of Ethereum Classic, another PoW fork of Ethereum.
Holders of ETHPoW are certain that the coin and its ecosystem will stay out of any legal trouble the new Ethereum will encounter. According to Gary Gensler of the SEC, the staking features of the latest version of Ethereum could qualify it as a security under the Howey Test.
For now, only a few exchanges support ETHW, the native token for the EthereumPoW network. On these exchanges, individuals can trade, and the token is offered for spot trading on platforms like FTX, ByBit, Kraken, and BitMart.
Along with the mainnet launch, the EthereumPoW team sent an update advising users of some adjustments and updates. There have been more than 1.7 billion transactions since the launch. Also, the total number of addresses holding ETHW now stands at about 254 million.
Use Cases
Many projects have declared support for the EthereumPOW network since its introduction. Uniswap V3, MetaMask, DefiEdge, other decentralised wallets, decentralised exchanges, and other Web3 systems are some of these projects.
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Mining pools that had previously mined on other networks when Ethereum transitioned to a proof-of-stake algorithm have now started mining ETHW. With the mining pool accounting for 41.7% of the known hash rate, F2pool and others have begun directing resources toward the token.
How Does EthereumPoW Work?
A few hours after Ethereum successfully migrated to the PoS consensus method algorithm, anonymous developers forked the Eth blockchain and introduced the EthereumPoW token. It utilises the Proof-of-Work mechanism (mining) and functions similarly to how Ethereum did previously.
The underlying algorithm used by proof-of-work blockchains determines mining operations’ rules and difficulty level. The “work” itself is mining. It involves adding legitimate blocks to the chain. Computers must solve cryptographic puzzles as proof of work to be compensated with the capacity to validate blockchain transactions. It’s similar to competition and is known as bitcoin mining. It operates on the concept that one can fend off a malicious attack and confirm the authenticity of a transaction by using a lengthy string of letters and numbers, known as hashes.
The proof-of-work algorithm that Ethereum’s mainnet has used since its creation will be maintained in ETHPoW. Although the scheduled difficulty bomb was intended to make it impossible to mine on the PoW chain, ETHPoW has continued to be mined by mining pools.
The ETHPoW fork, which has a similar transaction background as the main Ethereum network, will begin producing its blocks upon activation of the Merge upgrade. The pre-Merge state of the Ethereum network acts as the initiation point for the PoW merge, meaning all token smart contracts and balances will also be brought over.
Therefore, everyone who now has ETH on-chain will end up with an identical amount of ETHW on the ETHPoW chain. Only the PoW fork will have native ETHW, a completely distinct asset from the original Ethereum token (ETH).
With ETHW originally forking the Ethereum blockchain, the chain would start with the same circulating supply as proof-of-stake Ethereum. The currency supply of the two chains would diverge, though, because the post-Merge Ethereum will have a considerably lower inflation rate than its current PoW version. As a result, the supply of EthereumPoW will increase more quickly than Ethereum on PoS if mining continues.
Is ETHW a Good Investment?
The creation of ETHW by the community ensured that miners could continue to operate and prevent it from becoming outdated. Ethereum founder Vitalik Buterin claimed that those promoting the hard fork are only “trying to make a quick buck.” However, some notable personalities in the cryptocurrency ecosystem, like Justin Sun and Chandler Guo, have expressed support for the fork chain.
Before making an ETHW investment, keep the following in mind:
- Speculative Value: Reputable crypto projects have backed the new PoS chain and the Ethereum Foundation. While ETHW is not yet widely accepted like the classic Ethereum, several projects already support the chain, which could lead to more value increases.
- Volatility: Ethereum is the second-largest cryptocurrency by market capitalization; this liquidity promotes a stable market. The market value and trading volume of ETHW are much lower. Any coin with a low trading volume is vulnerable to manipulating the market and experiencing higher volatility.
- Exchange Listings: Digital assets are listed on exchanges according to their demand and security. If coins and tokens are regarded as secure and make money from heavy trade, they are more likely to stay listed. However, the exchange may delist the asset if the trading activity falls below a necessary profit margin. However, ETHW is currently tradable on several crypto exchanges, including Kraken, FTX, Poloniex, Gate.io, MEXC, Huobi, etc. This shows there is a growing demand for the digital asset.
How to Buy EthereumPOW on Kraken
Investors’ interest in buying EthereumPOW will continue to rise as more people understand how it works. Buying ETHW is straightforward and can be completed with these few steps:
Register an Account
First, users should visit the Kraken site, click “Create Account,” and register by providing a username, email address, and password. Next, click on the verification email sent as part of the registration process.
Verify
Once users have signed up, they must go through account verification in adherence to the platform’s KYC requirements. For example, to get “Starter Level” verification status, a trader will need to provide a name, email address, physical address, and phone number.
The “Starter” verification procedure is automated and normally takes less than one hour.
Once traders are verified, they can access the overview section of their trading dashboard to click on “Buy” to make their first crypto purchase. First, however, they will have to fund their account before they can buy any digital asset.
Deposit Funds
Traders can fund their Kraken account using a credit or debit card, bank account, and cryptos.
The navigation bar lets traders move between features on the Kraken account dashboard. Traders must click “funding” to make a deposit into their account and select their preferred payment method.
Buy ETHW
Customers should return to the website and place their first order after receiving notification from Kraken that their cash has arrived. Select “Trade” then click “New Order” from the menu. Users can create customised orders by choosing “Simple” or “Advanced.”
Only two input fields are available for users if they select the “Simple” option: volume and Amount. Purchasing cryptocurrency at market value is the simplest method. Enter the desired amount for buying the “ETHW/USD” pair. An estimate of the total cost of the order is shown on the right side of the page.
EthereumPOW FAQs
Will Coinbase support ETHW?
ETHW is not supported by Coinbase right now. However, the crypto exchange stated that following The Merge, if an ETH PoW fork occurs, this asset will be reviewed with the same scrutiny as any other asset listed on their exchange. Therefore, there might still be future support for the digital asset.
What is Ethereum PoW?
EthereumPoW is a clone of the proof-of-work (PoW) blockchain used by the Ethereum network before switching to a proof-of-stake (PoS) consensus algorithm. The mining communities that cannot profit from Ethereum’s new protocol support EthereumPoW because it preserves the functionality of the Ethereum network before its switch to PoS.
Can you mine proof-of-stake?
Proof of stake cannot be mined. For proof of stake, validators are chosen at random to verify blocks of information and confirm transactions. Instead of employing a competitive rewards-based approach like proof-of-work, this system randomly selects who is eligible to receive fees. Proof-of-stake blockchains enable networks to run with significantly reduced resource consumption since they do not require miners to expend electricity on redundant processes (competing to solve the same puzzle).
Which coins use proof-of-stake?
Proof-of-stake (PoS) is a consensus mechanism for blockchain networks, and some coins that use this mechanism include Ethereum (ETH), Cardano (ADA), Solana (SOL), Tezos (XTZ), Algorand (ALGO), etc.
