Ethereum Merge hits graphic cards, but GPU-based mining is not dead

Ethereum Merge hits graphic cards, but GPU-based mining is not dead

Ethereum’s shift of its consensus algorithm from proof-of-work (PoW) to environment-friendly proof-of-stake (PoS) in an event called ‘The Merge’ earlier this week will result in sizeable graphic card (GPUs) dump and hit manufacturers such as Nvidia and AMD.

As The Merge has obviated the need to secure the blockchain network, GPUs are no longer needed on a mass scale and will go for a significant discount, experts said. However, this may not happen immediately as the GPUs can be deployed for a new Ethereum hard fork and mining other stablecoins.

“With the Merge on the cards for a long while now, I would imagine most miners would have planned ahead with alternative money-making schemes. But, once the flooding stops, it would revert to basically as it is now, unless the increased demand for GPUs drop, caused by more than just mining. Things like the extreme influx of using computers for entertainment and work purposes will continue as usual,” Raj Kapoor, Founder and CEO of India Blockchain Alliance, told Moneycontrol.

According to experts, there will be increased availability of second-hand GPUs that have been mined to bits.

With The Merge, the energy used to maintain the whole Ethereum network will drop by a huge 99.9 percent, which will result in a 0.2 percent decrease in world electricity use. However, not all ETH miners may want to give up their GPU exploits in favour of the more environmentally friendly PoS variant.

What is GPU-based mining?

The majority of crypto mining in the beginning, especially for Bitcoin and Ethereum, was done on basic CPUs for home computers but as demand increased so did the mining difficulty.

People then discovered that their GPUs were well suited to handle algorithms since these computer parts were actually intended to handle equations for 3D and physics rendering, which are identical to the equations in the blockchain algorithms.

Since GPU mining was far more efficient than using other types of mining gear, it signalled a major shift for the community.

While traditional CPUs were like blunt instruments when it came to mining cryptos, in contrast, GPUs were well-honed Samurai swords. They established a new benchmark since they were much more efficient than the previous technology.

EthereumPOW made for GPU miners

Despite Ethereum Classic already existing as a PoW alternative to the main ETH chain, a new hard fork called EthereumPOW (ETHW) was made for GPU miners.

A hard fork is a significant modification to the network protocol that makes previously invalid blocks and transactions valid, or vice versa. Simply put, a hard fork happens when nodes of the most recent version of a blockchain stop accepting older versions, leading to a permanent separation from the earlier network version.

The ETHW chain’s developers want to replicate the whole original ETH blockchain, including all of its currencies, NFTs, Dapps, and liquidity pools. However, the value of ETHW remains uncertain as there would be few Dapp operators and unlike Ethereum Classic, it is not backed by any stablecoin. Also, emulating the original Ethereum chain would be tricky since ETHW now contains the difficulty bomb, which will render GPU mining obsolete around 2023.

Even so, ETHW was able to secure the backing of BitMEX and Poloniex, two reputable crypto exchanges, as well as the inventor of TRON. Although ETHW has not yet been released as a token, its IOU worth is now trading around $9.09. IOU stands for ‘I owe you,’ which denotes that one party owes another one money.

Since the chain has not yet forked, the ETHW coin would derive from a possible Ethereum hard fork.

Mining for other cryptos

After The Merge, GPU miners will be looking elsewhere for opportunities, like mining some other coin which would still reward firms of graphics cards.

Ethereum is not the only coin that is mined decently on a graphics card. Beam and Ravencoin are actually similarly profitable at this time and though ETH mining has stopped, these will continue. While there will be increased competition to mine these coins, it would balance out eventually.

“Additionally, the companies that produce and distribute GPUs are already selling such items in bundles with other products to drive up their sales and profit margins,” Kapoor adds.

The much-anticipated GPU flood that would curb inflated pricing might be delayed since many GPU miners want to continue supporting Ethereum Classic, ETHW, or whatever PoW currency becomes more profitable.

Interestingly, in anticipation of the debut of the next generation, chip makers like Nvidia and AMD are now selling the majority of current-generation GPUs for less than the manufacturer’s suggested retail price (MSRP).

The impact of PoS can be reduced if PoW chains keep demand high

Anndy Lian, Chief Digital Advisor, Mongolian Productivity Organization, says that the ETH upgrade would be one of the big revenue misses by Nvidia and its stock has fallen nearly 20 percent since the previous quarter due to a slowdown in the gaming business and weakness in the global markets.

“The impact from the change to POS would be reduced if the forked PoW chains can keep their demand high, getting support from the big miners and backed by strong communities who believe that PoW is the core value. If this is executed properly with the support of Nvidia, this market push would surely put the listed company in a much better position,” Lian says.

More certainty for chip manufacturing companies

A Barron’s report quoted analysts led by Stephen Glagola at investment bank Cowen saying that The Merge will affect chip manufacturers whose graphics processing units have been employed in the process because Ethereum’s switch to PoS will eliminate the necessity for mining of Ether.

But a decline in mining is not necessarily negative, rather, it will provide companies manufacturing chips more certainty and eliminate the risk of demand that is blindsided by unstable crypto prices.

“For GPU suppliers Nvidia and to a lesser extent AMD, we view the upcoming Merge as a long-term positive for sentiment as it likely removes the risk of another painful crypto bang/bust cycle in the future,” said the Cowen team.

Source: https://www.msn.com/en-in/money/topstories/ethereum-merge-hits-graphic-cards-but-gpu-based-mining-is-not-dead/amp/ar-AA11Z7rn

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Anndy Lian spoke at launch of Alawad Fund “Dubai’s Drive To Be a Global Hub for Crypto Innovation Show Results”

Anndy Lian spoke at launch of Alawad Fund “Dubai’s Drive To Be a Global Hub for Crypto Innovation Show Results”

As regulation hots up in the US following the Executive Order, and with the prospect of new UK government plans to regulate the cryptocurrency market in the coming weeks, it’s clear that countries can no longer sit on the sidelines of the crypto industry. The potential shift in power spurred on by innovation in blockchain and related technologies means playing safe for jurisdictions is no longer an option. The UAE is well positioned to be a regional hub for the crypto industry, with a regulatory structure in place and with more than 350 blockchain companies operating there. UAE also took advantage of the pandemic to attract business with aggressive vaccination while largely keeping its borders open, while retaining business through low taxes and a light touch regulatory mindset – a perfect environment for attracting crypto entrepreneurs in the last two years.

Indeed, some call Dubai the fastest growing hub in the world right now for crypto technology, reflected in the fact that Binance has now set up offices in Dubai. It’s also benefiting from business relationships with the booming Israeli crypto sector based in Tel Aviv, according to a report in the Wall Street Journal following recent peace accords. In addition, it’s reported that the Abu Dhabi-headquartered fund Mubadala, one of the largest sovereign wealth funds with over $243bn AUM, is investing in the blockchain sector. Mubadala’s CEO Khaldoon Al Mubarak told CNBC in December that he was not a skeptic but saw it as real. But he did admit the regulatory format was not there totally, but it needed to be in place in order for the asset class to transition into something new. “We are looking at the ecosystem around crypto and we are investing in that system.”

This global momentum to embrace crypto and blockchain was addressed by the Chairman of BigONE Anndy Lian recently, in a speech to His Highness Awadh Mohamed Al Sh Mogrin Sultan, a top-ranking diplomat, and Honourable Chairman of the Alawad Fund. Lian said he saw similarities with the innovative and supportive crypto environment in Singapore: “I’ve actually seen the same trend in Dubai, I’ve met some good projects that are very serious about what they do, whether it’s looking at web3 or decentralized storage, or DeFi.”

Elaborating on two key trends starting with DeFi Lian said the integration of traditional finance products into DeFi such as bonds meant this was a sustainable sector for a country such as Dubai. He said the second significant trend was the crypto mining business with a very good uptake of new miners. “There are many new investors going into crypto mining, and when I say big investors, we’re talking about at the very least tens of billions of dollars going into the mining space. If you look at the longer term, it is a very lucrative investment.”

Lian remarked that as a partner & LP to several funds, with an AUM (assets under management) of around $500 million and having invested in crypto startups since 2018, he was looking forward to talking to people and brands about working together on the investment front in Dubai. “I want everybody to work together. You know, we should work together, be open, and welcome, good partners; this is the same philosophy that you do as well; this is the place where we will start to build a new story,” added Lian.

Earlier in March His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, approved the first ever law on regulating virtual assets. “Today we are participating in designing the future of virtual assets globally.” Sheikh Mohammed stressed that Dubai possesses all the capabilities to be a key global center in the field of virtual assets, supported with the new legislative environment. “Dubai will provide the most advanced virtual asset ecosystem in terms of organization, governance and security. Approving the virtual asset law and establishing the Dubai Virtual Asset Regulatory Authority is a vital step that establishes the UAE’s position in this sector… a step that aims to help the sector to grow and protect investors,” he confirmed.

The Chainalysis ‘2021 Geography of Cryptocurrency Report’ published in October 2021, found plenty of potential for growth in the Middle East in general and specifically the UAE. The Middle East as a whole is the second-smallest cryptocurrency economy studied by Chainalysis, having received $271.7 billion worth of cryptocurrency between July 2020 and June 2021 (6.6% of global activity). “While that total is low compared to other regions, it represents nearly a 1500% increase over the Middle East’s total activity the previous year, making it one of the fastest-growing markets in the world,” the report’s authors said.

Reflecting the success in promoting crypto businesses in Dubai, it was reported on March 28 that cryptocurrency exchange business Bybit has received in-principle approval to conduct a full spectrum of virtual assets business in Dubai, the firm announced with the UAE Ministry of Economy at the World Government Summit 2022. Bybit also confirmed that it plans to set up its global HQ in Dubai, under the Emirate’s “test-adapt-scale” virtual assets market model.

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Featured on Startup India Magazine: Keynote Speech by Anndy Lian: “Navigating Blockchain & Cryptocurrency in the Public Sector”

Featured on Startup India Magazine: Keynote Speech by Anndy Lian: “Navigating Blockchain & Cryptocurrency in the Public Sector”

Thanks, Startup India Magazine Team for featuring my keynote speech on “Navigating Blockchain & Cryptocurrency in the Public Sector”.

Keynote Speech by Anndy Lian: “Navigating Blockchain & Cryptocurrency in the Public Sector”

Anndy Lian, Advisory Board Member of Hyundai DAC Technology gives a keynote speech at the Digital Week Online on the topic “Navigating blockchain & cryptocurrency in the public sector”. Digital Week Online is an online Summit held from 12-16th October 2020. This event unites tech entrepreneurs, authors, investors, innovators, leading corporates, and key governments

At his keynote speech, Anndy shares his experiences on how to deal with the different governments while introducing blockchain and cryptocurrency in the most effective manner. He started by giving a quick overview. Stating that the blockchain technology is possibly one of the finest piece of art when it comes to this century. In simple words, this technology is a decentralized ledger and it is immutable, with core functions like traceability and tracking. It is and will be widely used in finance, manufacturing, supply chain and governments. But it has not welcomed by all especially when it comes to cryptocurrencies, in fact, cryptocurrencies have been denounced by several governments due to a number of reasons. For example, Bitcoin, the leading cryptocurrency, has been banned in some countries, including Nepal, Bangladesh, among others. Many other countries have in the past made it clear that they will not accept Bitcoin but will accept blockchain technology.

“This is a good start for governments. For those who are currently dealing with governments or intend to participate in a public sector bid, please bear in mind that you need to address what is lacking and what can blockchain help them solve and not pure fluff.” Anndy Lian explained.

Anndy emphasises that governments are open to the technology so far based on his experiences on the ground when dealing with them. He goes on saying that food security, ID management and controlling the flow of money are some of the “hot” topics. Countries like Singapore, Estonia, South Korea are already embarking their journey to solve problems using blockchain technology together with their existing infrastructures.

Navigating through the public sectors needs time and determination. Businesses must be ready before speaking to the government to sell their products and solutions. They need to build themselves up properly by building up trust and increase credibility through partnerships and with sufficient marketing. Your brand has to gain some traction before approaching them for any form of business. Anndy went on by highlighting that all these are only made possible if the solution providers are backed by real, solid technology that is robust enough to tackle their demand. He has also noted that many of the startup blockchain companies depended on advisors and consultants to make their sales and introduction. He cautioned again that companies must choose wisely and not deceived by their smooth talks as many of them do not have any real experience in the tech field and have not gotten deep in the blockchain space.

Last but not least, he told all to be “Pragmatic”. Only being real and practical will open up new paths for you.

Anndy Lian’s is known for his advisory work for governments. He plays a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region. He advises the Secretariat on the latest concepts and applications of blockchain technologies in cybersecurity and IoT network data integrity across smart factories and upskills the Secretariat staff in blockchain technologies as applicable to productivity. APO members include Bangladesh, Cambodia, Republic of China, Fiji, Hong Kong, India, Indonesia, Islamic Republic of Iran, Japan, Republic of Korea, Lao PDR, Malaysia, Mongolia, Nepal, Pakistan, Philippines, Singapore, Sri Lanka, Thailand, and Vietnam.

He is also part of the Gyeongsangbuk-do Blockchain Special Committee, Government of Republic Korea, together with industry experts such as Brock Pierce (Chairman, Bitcoin Foundation) and Alexis Sirkia (Founder of Yellow.com), helping the province to grow using blockchain technologies.

To know more about what Anndy Lian is doing, you can visit www.anndy.com or on his social media channels, https://twitter.com/anndylian and https://www.linkedin.com/in/anndylian/. You can also view his keynote speech at https://www.youtube.com/watch?v=47tBlAbSAro.

 

Media Contacts:

Name: Jenny Zheng

Title: Editor

Company: BLOCKCAST.CC

Email: [email protected]

Website: www.blockcast.cc

 

 

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https://m.dailyhunt.in/news/india/english/startup+india+magazine-epaper-dha49a0dd9ef6b4bf68dc7033f9990f13b/anndy+lian+delivers+keynote+speech+on+navigating+blockchain+cryptocurrency+in+the+public+sector-newsid-dha49a0dd9ef6b4bf68dc7033f9990f13b_8ada6db00d6911eb9fff2988a8504e1a

Keynote Speech by Anndy Lian: “Navigating Blockchain & Cryptocurrency in the Public Sector”

Keynote Speech “Navigating blockchain & cryptocurrency in the public sector” by Anndy Lian at Digital Week Online 2020

Keynote Speech on “Navigating blockchain & cryptocurrency in the public sector” by Anndy Lian, Advisory Board Member of Hyundai DAC Technology

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j