Ethereum Hash Rate At Record High as PoS Transition Is Almost Done

By Kevin • January 29, 2022 6:01 pm • Comments

In the past year, the price of Ethereum had increased significantly to the point where returns in ETH had actually surpassed returns from Bitcoin.

As a result of the increased price of ETH, it has made the mining operations for the network even more profitable and has therefore attracted more crypto miners from other blockchains.

When a blockchain gets an increase in miners, it leads to an expansion of the network’s overall hash rate.

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In the month of January 2022, it was recorded that the hash rate reached a new record 1.11 PH/s.

This new record is a very bullish indicator for the future outlook of Ethereum because it means more nodes are joining the network.

When a blockchain network acquires more nodes, it essentially becomes more and more decentralized which is the entire purpose of the network.

With a stable decentralized network, users will then be able to experience faster transactions and increased security.

Ethereum right now is also under going a major shift which will help expand the growth of the blockchain.

CoinTelegraph reports:

In December 2021, Ethereum network participants implemented the Arrow Glacier upgrade, which pushed back the switch to a proof-of-stake (PoS) consensus.

It also means that Ethereum mining has a long way to go before it comes to an end. A transition from the proof-of-work (PoW) algorithm to the PoS algorithm is required before reaching ETH2, which is referred to as The Merge.

At that moment, the difficulty bomb will go off, essentially shutting down ETH mining and putting the network into an “ice age” that lasts until the switch is completed.

After the switch to PoS, however, ETH will no longer be mined; instead, transactions will be validated by staking on special nodes.

Presently, the network’s hash rate has increased past one petahash.

The number is equivalent to around 1,000 TH/s and indicates that the network’s hash rate has risen more than 66,000% since March 2016, when it started being recorded on the network.

This change in model for Ethereum had previously been labeled as Ethereum 2.0 in order to describe the upcoming major changes.

However, the Ethereum Foundation had recently removed this terminology as they stated that the name change did not accurately describe the changes that the blockchain was going through as it transitions to the PoS model.

The change is merely a name change, however, as the upgrades that were planned are still scheduled to happen sometime in the second or third quarter of the year.

With the major upgrade coming soon later in the year, investors are highly anticipating what this means for the price of ETH as well as how this will affect the growth of the Ethereum network in the future.

The bulk of the complaints today regarding ETH are based on the high transaction fees and the slower speed.

Once these issues are fixed, it seems that Ethereum is in a perfect position for future growth and may possibly even over take Bitcoin in transaction volume one day.

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