Note: This article was originally published under the Callisto Network blog. We are now evolving into Fushuma, a community-driven blockchain leveraging advanced ZK-Rollup technology for low fees and high throughput.
In Fushuma, FUMA token holders drive on-chain governance by making decisions on network upgrades and project funding. As the ecosystem grows, they are rewarded with tokens airdropped from funded initiatives.
Learn more about our transition and the exciting developments ahead for Fushuma here.
It is perhaps the single-most anticipated event in blockchain history: The arrival of Ethereum 2.0—the Merge, as it’s known.
The promise of a faster, cheaper, less energy-intensive blockchain has been hanging over the ETH network for years and was always dogged by one delay after another.
Now, however, Ethereum insists the Merge is upon us and will happen soon—in mid-September.
But the Merge won’t happen in a vacuum that only touches the ETH blockchain. The impacts of Ethereum’s move from proof-of-work to proof-of-stake will ripple through the cryptosphere, touching a host of coins, tokens, miners, projects, and other blockchains.
From those ripples will emerge winners that benefit from ETH’s switch to a PoS protocol.
One of the winners is very likely to be Callisto Network, an offshoot of Ethereum Classic, which is a fork of the original Ethereum network.
Callisto Network, was founded in April 2018 by Dexaran, the mononymous programmer who was instrumental in the fork that formally separated ETH Classic from the original ETH network. Four years later, Callisto today is one of the fastest-growing networks and has innovated across crypto, DeFi, and the NFT space to create one of the safest blockchains to date.
As a result of the Merge, Callisto Network and its CLO coin stands out as one of the blockchains and cryptocurrencies that will see positive impacts. Here are four ways the Merge is likely to benefit Callisto:
1: Miners Moving to Another Blockchain
Ethereum’s abandonment of proof-of-work validation will slam crypto miners who, combined, run an estimated 25 million GPUs globally. When ETH flips the switch to proof-of-stake validation, those 25-plus million PoW GPUs will suddenly be idled.
But what’s clear is that the owners of those millions of GPUs are not going to just shrug their shoulders and say, “Oh, well. It was fun while it lasted.” They will, instead, search for other proof-of-work blockchains where they will put their GPUs back to work, earning a passive income.
Ethereum Classic will gather up some of that demand, but won’t accommodate all of it. Many miners will investigate alternative mining options and they will find Callisto Network, which, because of its Ethereum heritage, operates on the same standards they’re accustomed to.
As they migrate their mining power to the Callisto Network. That, in turn, would likely see CLO prices rise.
2: Focus on Security
For all the hype surrounding proof-of-stake, the reality remains that proof-of-work is the more secure technology—a fact not lost on numerous cryptocurrency miners, traders, investors and layer2 crypto projects.
As such, when Ethereum switches lanes to PoS validation, those that demand greater security will migrate to Callisto Network. In particular, that could see an increasing number of layer 2 projects moving onto the Callisto blockchain, since the transition would be almost effortless.
And there’s this: If ETH 2.0 fails—not out of the realm of possibilities—ETH-based projects that want to give PoS a shot will rush to find a new home. Callisto is simply the easiest chain onto which they can relocate their operations.
As with the miners, that increasing number of projects seeking greater network security would ramp up demand for the CLO token, driving up the price.
3: Status Quo
This is a corollary to the previous benefit. Many of the projects and solutions that already exist, do not want to change their operations. They need to work as they were previously working, for any number of reasons.
In short, they want the stability of what they know, rather than the uncertainty of a new arrangement that will certainly have kinks and hiccups.
Moreover, while expectations were that ETH 2.0 would result in a dramatic leap in transaction speed alongside a dramatic decline in transaction costs, the reality is that the Merge does neither. That will occur, theoretically, later.
Because of that, there’s no near-term transactional benefits for projects. Given that fact, those that prefer the stability of the known will gravitate to an ETH-compatible blockchain that allows them to continue along the same path they were on, with limited interruption. That’s the Callisto Network.
The same argument holds for new projects that want or need to operate on PoW networks. Again, Callisto will likely capture its share of those projects because of the underlying technology based on the original Ethereum protocol.
4: Old Dogs, No New Tricks
The original Ethereum network dates to 2013, while the Ethereum Commonwealth, was one of the development team overseeing Ethereum Classic, emerged in 2017. Meaning: There are untold numbers of old-school developers and programmers from across the last nine years who have a skillset specifically honed for ETH and ETH Classic.
They will, of course, continue to build, and many of them are very likely to find a home on the Callisto Network, given that it is a direct offshoot of ETH Classic.
More developers means more projects special-built for Callisto, which means more demand for the CLO coin that powers the Callisto blockchain.
No one can say with certainty what will happen when The Merge occurs. Will it succeed? Will it fail? Will there be hiccups that take months to address?
What we can say, however, is that Ethereum’s move to proof-of-stake is not for everyone. Lots of frustrations have already emerged from miners and projects about the switch. And that clearly means that some part of the current Ethereum ecosystem is going to migrate away from Ethereum and look for a new blockchain.
They will find Callisto Network.
