Luxor Starts Ethereum Mining Pool as Proof-of-Stake Shift Looms

Luxor also started an advocacy group for Ethereum to remain on the proof-of-work consensus mechanism.

Jan 24, 2022 at 2:00 p.m. UTC
Updated Jan 24, 2022 at 2:24 p.m. UTC

Aoyon Ashraf is crypto mining reporter with more than a decade of experience in covering equity markets

Luxor, the crypto software and services company, is launching an Ethereum mining pool even as the cryptocurrency is currently planning to abolish mining from its network.

The company is working with large institutional miners, including Hut 8, and several retail miners in North America to provide a U.S.-based Ethereum mining pool, the company said in a statement on Monday.

“The mining pool is outfitted for Miner Extractable Value, a novel mining strategy for maximizing Ethereum transaction value, and is optimized for a low uncle rate (mined blocks that aren’t added to the longest blockchain history but which miners get paid for all the same)," Luxor said. The pool will also be compatible with its Catalyst service, which enables miners to get paid in bitcoin for their validation on Ethereum network.

'Most robust'

Luxor is launching the mining pool service amid efforts to switch Ethereum to a proof-of-stake (PoS) consensus model from its current proof-of-work (PoW) mechanism, which will eliminate the need for miners. That transition has been delayed multiple times.

However, Luxor is not worried about the PoS switch.

“We've been tracking ETH 2.0 developments closely, and we're launching the pool even now because we believe there's a high probability that Ethereum's transition to proof-of-stake won't happen this year,” Luxor Mining’s co-founder and Chief Operating Officer Ethan Vera told CoinDesk.

Luxor has also started organizing and building an advocacy group to keep Ethereum on PoW consensus in addition to launching the pool. "At Luxor, we believe that proof-of-work is the most robust and tested consensus mechanism for public blockchains, and that includes Ethereum,” Vera added.

In recent months, the PoW consensus mechanism has received scrutiny by lawmakers globally for its energy consumption. Most recently, the U.S. held a congressional hearing to discuss the energy consumption related to the PoW. Meanwhile, the EU markets regulator called for a ban on the validation system, citing its energy intensity.

However, Luxor sees the system as the best way to ensure the network's security, decentralization and incentivization of more green-energy transition.

“At Luxor we believe the proof-of-work consensus mechanism is optimized for decentralization and security, while green-energy innovation is moving us to a world in which PoW mining will not be an environmental concern,” Vera said.


The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Aoyon Ashraf is crypto mining reporter with more than a decade of experience in covering equity markets

CoinDesk - Unknown

Aoyon Ashraf is crypto mining reporter with more than a decade of experience in covering equity markets

Trending

1
CoinDesk - Unknown
Bitso, primer unicornio cripto de América Latina, despide a 80 empleados

El exchange, que tenía más de 700 empleados antes de los recortes, cuenta con cuatro millones de usuarios en la región.

El exchange, que tenía más de 700 empleados antes de los recortes, cuenta con cuatro millones de usuarios en la región.

CoinDesk - Unknown
2
CoinDesk - Unknown
Crypto's One Unassailable Use Case: Helping Human Rights Activists

The Oslo Freedom Forum was heavy on bitcoin and stablecoin discussions, underscoring that this technology is a tool for political dissidents, not just a get-rich-quick scheme.

The Oslo Freedom Forum was heavy on bitcoin and stablecoin discussions, underscoring that this technology is a tool for political dissidents, not just a get-rich-quick scheme.

CoinDesk - Unknown
3
CoinDesk - Unknown
Who Are We in the Metaverse, and How Do We Prove It?

Self-sovereign identity needs to be baked into the DNA of Web 3.

Self-sovereign identity needs to be baked into the DNA of Web 3.

CoinDesk - Unknown
4
CoinDesk - Unknown
Market Wrap: Bitcoin Stuck Below $30K as Buyers Remain on Sidelines

BTC declined by as much as 3% over the past 24 hours and is on track to end the month in the red.

BTC declined by as much as 3% over the past 24 hours and is on track to end the month in the red.

CoinDesk - Unknown