Tether has voiced support for Ethereum Proof-of-Stake assets after the Merger. In my opinion, the centralized stablecoin issuer says, the Merge shouldn’t be “weaponized” against the Ethereum community.
Tether sided with Ethereum PoS
Ethereum’s potential Proof-of-Work fork fails to attract support. However, there is a lot of debate surrounding the future of Ethereum after The Merge.
Shortly after Circle’s pro-PoS statement, Tether announced today that it will support Ethereum’s transition to Proof-of-Stake rather than a potential Proof-of-Work fork.
Tether stated in a blog post that Ethereum’s transition to Proof-of-Stake shouldn’t be “weaponized” and cause any disruption to decentralized finance (DeFi) protocols, centralized platforms, and the crypto community at large. Circle declared that, regardless of Ethereum forks, its USDC stablecoin could “only exist as a single valid version” and that the company fully supported Ethereum’s upgrade to Proof-of-Stake.
Ethereum is set to change its consensus algorithm from Proof-of-Work to Proof-of-Stake, a highly anticipated transition in the crypto community called The Merge.
Once the Merge is completed, Proof-of-Work miners will become obsolete as consensus will be reached through another group of network participants known as validators. This recently led prominent figures in the Chinese mining community to announce that they will fork Ethereum to keep the Proof-of-Work version running even after the blockchain officially transitions to Proof-of-Stake.
Tether and Circle’s decision to support Ethereum’s future Proof-of-Stake chain instead of a potential Proof-of-Work chain raises doubts about the long-term viability of the worker-led initiative mining leads, as neither USDT nor USDC are in Proof- the chain of Work will be backed by reserves.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews