February 11, 2025
Blockchain

Bitfinex launches derivatives on Ethereum PoW fork

  • August 23, 2022
  • 0

Bitcoin exchange Bitfinex has launched derivatives based on potential Ethereum forks based on Proof-of-Work (PoW) and Proof-of-Stake (PoS) consensus algorithms. Bitfinex introduces new Chain Split Tokens (CSTs) that

Bitfinex launches derivatives on Ethereum PoW fork

Bitfinex launches derivatives on Ethereum PoW fork
Bitfinex launches derivatives on Ethereum PoW fork

Bitcoin exchange Bitfinex has launched derivatives based on potential Ethereum forks based on Proof-of-Work (PoW) and Proof-of-Stake (PoS) consensus algorithms.

split tokens ETHW and ETHS are available on the Bitfinex derivatives platform.

“We are excited to provide our users with access to these new Ethereum split tokens to help prepare for all possibilities as network consolidation approaches,” said Paolo Ardoino, the company’s CTO.

Clients can create an asset in ETH for an equivalent amount. Reverse conversion is possible at any time. Products expire on December 31, 2022.

The exchange team identified the following possible scenarios for the new tokens:

  • if the existing Ethereum network (in PoW) does not change the consensus algorithm, ETHS will expire and ETHW will be replaced by ETH;
  • if consensus is successfully changed to PoS without a PoW fork, ETH will be provided in exchange for ETHS;
  • In case of changing the consensus on the mainnet and launching a new chain on PoW, both derivatives will be exchanged for ETH.

“ETHW and ETHS are risky products and may lose some value when used. Please read the terms and conditions carefully and make sure you understand the split tokens available on the derivatives platform.”

At the end of July, miner Chandler Go expressed the idea of ​​launching an Ethereum fork that would continue to work on the PoW algorithm. The new network is designed to enable cryptocurrency miners to continue their operations after the main blockchain transitions to PoS.

Earlier in August, several exchanges, including Poloniex and MEXC, released trading tokens of potential ETHPoS (ETHS) and ETHPoW (ETHW) forks. Assets are treated as IOUs that are fixed 1:1 to ETH.

The BitMEX derivatives platform offered users ETHPoW-based futures.

Recall that the Ethereum developers planned The Merge for about September 15-16.

Against the background of the immediacy of the event, the head of TC Cooperative Bob Summerville doubted the viability of the fork. Supporters of the project responded by describing the branching of the network as “inevitable”.

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Source: Fork Log

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