Difficulty Bomb

Like other cryptocurrency networks, Ethereum relies on a consensus method that consumes a lot of energy and processing resources. This promotes technical scalability and centralization into massive mining farms established by individuals or companies with significant assets. But this centralization goes against the fundamental principles of cryptocurrencies.

When ETH 2.0 and the proof-of-work update are sent to the Ethereum network, mining difficulty will intentionally and abruptly increase. This is referred to as the “difficulty bomb” for Ethereum. The difficulty bomb aims to exponentially extend the time required to mine a new block on the Ethereum blockchain so that it:

Removes the motivation for cryptocurrency miners to switch to less energy-efficient proof-of-work mining.
The capacity to centrally control currency generation and ownership is lost.
Prevents blockchain splits
Upgrades nodes by force

Miners may decide to stick with the PoW algorithm even after the network switches to PoS because of Ethereum’s difficulty explosion. Resistance to a decline in profits will probably be the main deterrent for miners to stay put. A fork in the Ethereum blockchain is possible if all miners do not transition to proof-of-stake.

The creators of Ethereum anticipated this and designed its blockchain to include increases in mining algorithm difficulty levels.

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