Ethereum Fx: Make mining great again
Ethereum has changed a lot between 2017 and 2019. The surge in Ethereum prices during the 2017 cryptocurrency bull run saw a massive increase in the number of miners beginning to mine. Prices, mining difficulty levels and interest soared at all-time highs. However, the surge in prices saw a swing in the other direction: the price of Ethereum fell from $1,300 to $88. Mining rigs that were purchased during the peak of the boom now struggled to recoup hardware and electricity costs. As a result of Ethereum miners leaving the space, the difficulty level of mining subsequently dropped significantly. Furthermore, research carried out by Susquehanna proved that mining Ethereum using a GPU is no longer profitable. Profits from mining have fallen from $150 per month during the summer of 2017 to almost zero profits per month in current economic conditions.
The lack of profits for miners mining Ethereum, decrease in difficulty levels for miners are all a result in the massive drop in price. An example of a hardware manufacturer who has suffered massively from the downturn is Nvidia. Nvidia, an American based GPU manufacturer, has seen their share price and profits tumble massively due to the unexpected drop off in demand from would-be miners. GPUs, which were once extremely profitable to mine Ethereum with, are now almost obsolete. This overview of current market conditions and the state of mining as it stands today is convey the fact that mining during the peak was not sustainable given the market conditions.
Ethereum Fx: The Next Generation
Ethereum is often called a second-generation cryptocurrency. It introduced smart contracts to the world of blockchain and gave everyone the ability to mine the coin. Despite these developments, it’s now more difficult than ever to mine the coin profitably. Ethereum Fx has been developed to offer the next generation of a better experience for miners. Ethereum Fx was first developed by forking the Ethereum protocol. This forked version of Ethereum provides everything offered by the original Ethereum experience, but protected with FxGuard Protocol, a new security mechanism inspired by the by the Horizen and the Pirl penalty systems built on top of Ethash (Dagger-Hashimoto). With the deployment of FxGuard Protocol, the chances of a successful 51% attack on the protocol are eliminated.
The inspiration to create Ethereum Fx was born out of a need for a better, more secure and advanced version of the original Ethereum protocol. Ethereum Fx is designed to uphold the original philosophy of the Ethereum project by fostering an open, collaborative environment of cryptocurrency, mining ecosystem and a crypto-wallet. Ethereum Fx is developing a gold-standard ecosystem for miners, cryptocurrency owners and developers to grow and work together.
It is extremely easy to get started mining Ethereum Fx. The process is identical to Ethereum, meaning all existing hardware can be used for Ethereum Fx. Mining is based on Proof of Work, meaning for every block of transactions miners use computational power to solve mathematical puzzles until a miner wins and receives coins as a reward. Once miners receive their Ethereum Fx tokens, these can be spent and traded internationally.
Conclusion: Why Ethereum Fx?
Ethereum Fx are addressing all of the major issues that Ethereum faces today. These include a slowing down of the Ethereum eco-system, high transaction fees, slow transaction times and lower rewards for miners and a high investment attractiveness. By getting involved with Ethereum Fx, you can rest assured that all development takes place on a fully open source, distributed blockchain, which values miners, developers and holders.