Ethereum PoW Hard Fork - Will Assets Double? Guide To Taking Profit From This Event

Ethereum PoW Hard Fork - Will Assets Double? Guide To Taking Profit From This Event

Let's looking back into the past

In 2016, The DAO was hacked and took away 3.6 million ETH, which was about 5% of the total supply of Ethereum at the time. The Ethereum developers chose to help the affected users by performing a hard fork.

So Ethereum is split into two different blockchains. The new blockchain is the Ethereum we are still using at the moment, basically reversed the hack to refund users and the original blockchain was renamed to Ethereum Classic.

The current Ethereum Classic and Ethereum are not compatible with each other and most of the affected users choose to migrate to the new blockchain. However, there is still a part that decided to stay and continue to develop Ethereum Classic to compete with Ethereum itself. This battle seems to have ended with an indisputable victory for Ethereum.

But now it looks like history will continue to repeat itself.

On September 15, The Merge will officially take place after a long delay, Ethereum will officially switch to PoS. But not everyone is excited about it, miners for their own sake have agreed to hardfork a PoW chain running parallel to Ethereum PoS and it seems that this fork is inevitable.

What will happen to the tokens if there will be a hardfork?

The PoW forks described by Justin Sun and Chandler Guo will be an exact replica of the main Ethereum chain, with transaction history and token balances preserved.

For Ethereum and ERC-20 tokens, in the event of a post-The Merge hard fork, investors will be distributed the same amount of “fork” tokens on the new PoS chain in proportion to the tokens they currently hold. owned in the PoW chain. Thereby investors will have an equal number of tokens with identical smart contracts on both separate blockchains. But does the Ethereum fork mean that all of your money will suddenly double? Are you sure it's not "crunchy"?

The price of tokens will still be determined by the market. Some tokens - especially ether used to pay transaction fees - may have value on a PoW Fork. It is not excluded that there may be tokens that are market driven based on memes that we can hardly foresee.

However, not all applications and services built on Ethereum's PoS network will receive support on PoW forks, and in most cases the lack of active community support will. lose the value of the token.

Stablecoins like USDT and USDC - The Circulation of the Entire DeFi Economy will not be recognized on these forks, and holding USDC or USDT on the Ethereum PoW fork will be the same as holding fake coins.

The lack of stablecoin support will have major consequences for the ability of other forked tokens to retain value. USDC and USDT are used as collateral throughout the DeFi space. If and when these tokens on the PoW chain stop trading at $1, they will create a cascading effect that, combined with other factors, renders most other token forks virtually worthless. So the PoW fork of Ethereum, at least initially, will be like ghost cities, the foundation will be there, but without any signs of life.

But is this event a gift for investors?

An anonymous team with core members who are crypto investors with a belief in Proof-of-Work technology from around the world is developing the EthereumPOW chain. This process has been conducted for more than 1 month and has undergone many testnets.

However, the key concern here is whether this organization will change the ChainID compared to the Ethereum Mainnet, because this is the only parameter that helps against “Replay Attack” between EVM chains.

What is replay attack?

A replay attack is a form of network attack in which malicious entities intercept and repeat the transmission of a valid data into the network. This can be used to bypass financial institutions to copy transactions, allowing hackers to withdraw funds directly from the victim's own account. In the case of hardfolk, hackers could theoretically perform a replay attack against the ledger. A transaction processed on one ledger by someone with a valid wallet prior to the hardfolk will also be valid on the other. Simply put, your transactions on EthereumPOW will be duplicated on the Ethereum Mainnet. For example, if you sell 97 EthPOW (copy), this transaction will also take place on the Ethereum Mainnet with your real assets.
Going back to the main issue, although the team said they will change the ChainID from 1 to 10001 and this will happen a day before The Merge takes place. However, such a period may not be enough for integrators to test and test the client. Therefore, ChainID constant rate is still possible.

So what should investors do if this really happens?

Investors should not continue to accompany, but just take the opportunity to get as many tokens (copy) as possible and then stop using. However, these operations are not as simple as how people move to the EthereumPOW chain and sell EthPOW - this can affect real assets. For this process to be safe, you need to do some more transactions on the Ethereum Mainnet to raise the Nonce to ensure that the Ethereum wallet is not duplicated from EthPOW.
*In crypto and blockchain, nonce is an acronym for "number only used once", which is a number added to hashed, or encrypted in a blockchain that, when re-hash, is meet the difficulty limit for decoding. Or simply understood, nonce is the problem or algorithm that miners need to decode to enter the hash to receive the mining reward.

Instructions to take profit from this event

The following is a guide from Mr. Tran Huy Vu - Co-Founder Kyber Network.

👉 Step 1: List all existing wallets and each wallet will follow the next step.

👉 Step 2: List the tokens you want to sell at EthPOW to take profit, each token will do 1 Approve transaction, 1 sale transaction on the exchange, if there are tokens in DEX pools, 1 more transaction will be withdrawn from the pool, so there will be 3 transactions to sell via EthPOW.
Total number of transactions to sell out tokens via EthPOW per wallet = 3 (number of tokens) = X
For example, 1 wallet owns 5 tokens, then X=3*5= 15.

👉 Step 3: After The Merge takes place, you make a series of transactions to send ETH to the wallet address in the Ethereum mainnet (only costs gas) and the total number of transactions must be (X + 1) (according to the wallet). the example above would be 16 times the transaction moves 0ETH).

❗️❗️An extra transaction in this equation is extremely important to prevent repeat transactions from EthPOW to Ethereum Mainnet when you sell tokens via EthPOW. Tokens can only be sold on EthPOW after doing the above step for each wallet.

👉 Step 4: Go to EthPOW and sell tokens on this chain. Note that only the number of transactions LESS or Equal to the number of transactions you just did in the Ethereum Mainnet for each wallet (X).

👉 Step 5: Repeat steps 3 and 4 for all the wallets you want.
After this step, the tokens have been transferred to EthPOW. The next step will be to sell EthPOW to tokens of “value” through the following supported exchanges.
Choose 1 of these exchanges and then send tokens and sell (Note that this can only be done with 1 transaction).

So you have successfully closed the profit. Be sure to follow every step to ensure the safety of these transactions

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