The Ethereum Merge and the Opportunity It Presents To NuNet
Greetings Singularitarians,
For nearly two years, the Ethereum blockchain has been gearing up for its biggest upgrade to date: The Merge. Once complete, it will transition the blockchain from an energy-intensive proof-of-work system to a less computation-heavy proof-of-stake consensus mechanism. These facts are widely known, but in this article we will also examine the unique opportunity this event poses for NuNet.
The End of Ethereum Mining
First, we need to understand the dynamics involved in Ethereum’s impending transition. Up until this point, Ethereum’s consensus algorithm has required participants to guess a string of characters in order to be allowed to write the next entry in the ledger of transactions, called a block, and be rewarded with a sum of the ETH cryptocurrency. To accomplish this, a great deal of computing power is required to guess many strings of code to have a chance at guessing the right one first, in a process known as hashing.
Two devices make up the majority of those used to run Ethereum’s mining algorithm, called Ethash: application specific integrated circuits (ASICs) and graphics processing units (GPUs). ASICs are designed to only be used for a specific purpose; in the case of Ethereum ASICs, they can only be used to run the Ethash algorithm, and would only be useful for mining forked versions of the Ethereum blockchain, such as Ethereum Classic. GPUs, on the other hand, are more general-purpose and could be used for something else when proof-of-work on Ethereum comes to an end.
NuNet’s Opportunity
As a part of its mission to create decentralized cloud computing, the NuNet team has been developing GPU integration, to allow anyone to share the computing power of their GPUs on the network. With the Ethereum Merge currently set to occur in September of this year, the timing is in almost perfect alignment with NuNet’s development cycle.
When the Merge happens, GPUs will no longer be needed to mine ETH, and Ethereum miners will be looking for a new way to earn revenue with their devices. Many will begin to mine other blockchains that still use a proof-of-work system, but it remains to be seen if they will be able to remain profitable. Ideally, we would like to see many of these miners start providing computing power to NuNet, but this will also likely be viewed as a risky venture since NuNet’s profitability is also untested.
Alternatively, many of these displaced miners will likely opt to sell their GPUs to recoup some of their investment, not to mention the fact that there will be less demand for new GPUs once the most profitable blockchain to use them has ended proof-of-work. These factors will likely lead to a higher supply of GPUs on the market, allowing those who are interested in providing computing power to NuNet to obtain them at a much cheaper price.
Though these are uncertain times for those who mine cryptocurrency, the fact that many devices may be decommissioned from this purpose presents an ideal environment for more functional-based use-cases for computing power. NuNet’s decentralized cloud computing is one such use-case that stands to flourish in this environment.
NuNet Is Hiring!
NuNet currently has a number of open positions for various roles within the team. If you have the skills and desire to join us in our journey, you can find more information and contact us through our jobs page.
About NuNet
NuNet lets anyone share and monetize their computing resources, turning cloud computing power from a centralized service into an open protocol powered by blockchain. Find out more via:
