The long-awaited Ethereum transition to Proof-of-Stake (PoS) was completed on September 15, 2022. At that time, PoW miners who had contributed years of computational power to Ethereum’s development collectively went offline.
The Fate of Ethereum Miners Post-Merge
According to whattomine data, Ethereum’s global hash rate stood at 840 Th/s on September 14, with over a million mining rigs still actively participating—most of them GPU-based. While these machines could no longer mine Ethereum after the Merge, they weren’t necessarily out of options. Potential paths forward included:
- Switching to other GPU-compatible chains like Ethereum Classic (ETC).
- Participating in Web3 protocols requiring computational power.
- Transitioning to data center operations.
- ZK mining—a previously niche concept now gaining traction.
What Is ZK Mining?
ZK mining refers to machines leveraging Zero-Knowledge Proofs (ZKPs) algorithms to provide computational power for generating cryptographic proofs. In Paradigm’s 2022 article, Hardware Acceleration for Zero Knowledge Proofs, ZK mining was highlighted as a sector with potential comparable to PoW mining.
Key Applications of ZK Mining
- Decentralized Storage (e.g., Filecoin)
- Layer 1 Blockchains (e.g., Aleo)
- Layer 2 Scaling Solutions (e.g., Scroll)
Decentralized Storage: Filecoin
Filecoin introduced GPU-based zk-SNARKs in its 2019 testnet and implemented them on the mainnet in 2021. Protocol Labs, Filecoin’s team, emphasized zk-SNARKs' role in reducing storage and bandwidth costs while maintaining security.
How Filecoin Uses zk-SNARKs:
- Proof of Replication (PoRep): Ensures unique data storage.
- Proof of Spacetime (PoSt): Continuously verifies data storage.
Each proof is compressed to 192 bytes, drastically reducing blockchain storage demands.
👉 Explore decentralized storage innovations
Layer 1 Blockchain: Aleo
Aleo is a privacy-focused Layer 1 chain using zkCloud for off-chain execution. Its hybrid consensus model, AleoBFT, combines PoS validation with Proof of Succinct Work (PoSW), where miners generate ZK proofs for rewards.
Aleo’s Testnet Progress:
- Testnet 2: 10,000+ nodes, 20,000 proofs/second.
- Testnet 3: Encourages GPU-optimized proof generation.
Layer 2 Scaling: Scroll
Scroll is an EVM-equivalent zkRollup leveraging decentralized Roller Networks for proof generation. Unlike centralized alternatives (e.g., zkSync), Scroll allows miners to contribute GPU/FPGA/ASIC power, creating a competitive proof market.
Scroll’s Architecture:
- Scroll Node: Coordinates transactions.
- Roller Network: Proof generation by miners.
- Rollup Contracts: On-chain verification.
Challenges for Ethereum Miners
While ZK mining holds promise, current bottlenecks include:
- Filecoin’s hardware requirements (beyond GPUs).
- Early-stage projects like Aleo (testnet rewards non-transferable).
- Scroll’s nascent proof market (not yet incentivized).
Post-Merge, many miners opted to sell or idle rigs, reflected in declining GPU prices. However, as Vitalik Buterin noted, Type 1 ZK-EVMs could eventually demand vast proof-generation power, potentially reviving demand for GPU mining—this time for ZKPs.
FAQs
1. Can Ethereum miners switch to ZK mining?
Yes, but hardware requirements vary (e.g., Filecoin needs storage servers).
2. Which ZK projects are GPU-friendly?
Aleo and Scroll, though both are in early phases.
3. How does ZK mining compare to PoW profitability?
Current rewards are lower, but growth potential is significant as adoption increases.
👉 Learn more about ZK mining opportunities
Final Thoughts: ZK mining represents a transformative shift for GPU miners, blending cryptography with decentralized infrastructure. While hurdles remain, its alignment with Ethereum’s scaling roadmap positions it as a long-term contender in the post-PoW era.