Ethereum miners will tour other networks on May 13

Red Panda's proposal to migrate ethereum hashrate.

Key facts:
  • The objective is to test the profitability that can be obtained with GPUs in other cryptocurrency networks.

  • The miners plan to explore networks such as Ethereum Classic, Firo, Equilibria, Sero, among others.

Some Ethereum miners, following the youtuber’s proposal Son of a Tech (SOAT), will migrate their mining power to other networks this Friday, May 13.

The objective of this action is test the profitability of other blockchainswhen —according to estimates— it could be a few months before the difficulty bomb is activated and, with it, the end of Ethereum mining.

The proposal is named The Great Ethereum Hashrate Migration (the great Ethereum hashrate migration). Your Creator Explain that what is sought is to know first-hand “how these other networks respond”.

SOAT emphasizes that this is just a test. Those who participate must be aware that there are possibilities that they perceive a reduction in their profitability.

SOAT’s proposal was replicated by other YouTube channels and Internet communities. One of these channels is Red Panda Mining, specialized in the field of mining and with more than 210 thousand subscribers. panda network public a survey in which he asked his followers if they would be willing to join this initiative of SOAT. The “yes, support” obtains, so far, the majority of votes.

Red Panda's proposal to migrate ethereum hashrate.
With more than 51% of 9,832 votes in total, the Red Panda community is in favor of the hashrate migration on May 13. Source: Red Panda Mining / Youtube.

Red Panda warns that in the migration it must be taken into account that the overclock, or modifications to the firmware of the cards to increase their hashrate, they may not be as effective on other networks. For example, that is what happens in ProPow, a mining algorithm used by networks like Sero, to which it is planned to migrate.

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Ethereum miners will tour other networks on May 13

The invitation to tour other networks is only valid for miners using graphics cards (GPU), since it allows them to migrate between different mining algorithms. Instead, those using ASICs, such as Antminer’s E3 teams, can only mine using Ethereum’s algorithm, Ethash. It is an algorithm little used in other networks, as shown by the Whattomine portal.

To coordinate the event, SOAT shared the Discord group in which the actions to be taken will be published. Conversations in the group, which now has more than 1,900 members, have been revolving around what firmware modifications they should make by the time they migrate.

“Mining algorithm“, a term that has been used several times in this text, refers to the method used to obtain the hash that resolves a block. In the case of Bitcoin (BTC), it uses the SHA-256 algorithm, while Ethereum uses Ethash. There are other variations such as Equihash, used by Monero and ZCash, among other algorithms. Depending on the type of algorithm, it is established what type of hardware can mine it (CPU, GPU, ASIC or specific equipment).

How profitable are other GPU mining networks?

Ethereum is currently the network that offers the highest profitability in terms of GPU mining, as can be seen on the Whattomine portal.

Profitability levels for GPU mining.
Whattomine allows you to calculate profitability levels for both GPU and ASIC equipment.
Source: Whattomine.

In comparison, using six RTX 3080 GPUs as a base, Ethereum generates, at the current price (which can be checked in the CryptoNoticias Calculator), an average of USD 20 per day. This under the Ethash mining algorithm. The one that follows is the Sero network, with the ProgPow algorithm, which generates a daily return of USD 15 (a reduction of more than 20% compared to Ethereum). Another Ethash network within the listing is Etho, which produces USD 6 (less than 70% profitability).

In this current comparison, it is worth keeping in mind that the profitability levels offered by other networks are based on their current hashrate. If there is a massive migration to that network, the returns will be considerably reduced.

On the other hand, the Ethereum Classic developer team has stated be preparing for the future migration of Ethereum hashrate to your network. However, according to current profitability levels, this network is around USD 10, according to the comparison made.

Difficulty bomb, the end of mining

The difficulty bomb on Ethereum could go off in the second half of this year. Its objective is to reduce the incentives of miners by making it difficult to mine blocks, which translates into a reduction in profitability. The increase in difficulty is gradual, which entails a progressive shutdown of mininguntil reaching a deadlock known as the “Ice Age” in which mining would no longer confirm a single block, giving the final step to the validators and the Ethereum 2.0 proof of participation.

The difficulty bomb, for now scheduled for June according to sample the timer of the Wen Merge portal, is waiting for a new discussion that could define the final date. This after two rescheduling.

See also  1 in 10 ETH are currently on Ethereum 2.0

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