Ethereum, the second virtual currency on the market, is launching a long-awaited update. Important for its future, the transition to Ethereum 2.0, which could unleash its full potential, will be particularly scrutinized by the cryptocurrency community.
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The Ethereum Foundation is making a much-anticipated update. The transition from proof of work proof of stake could create an upheaval, in one direction or the other, for the second cryptocurrency of the market. Ethereum 2.0 is one of the most anticipated updates by the cryptocurrency community.
A necessary evolution for the second cryptocurrency
Currently, Ethereum ranks second among virtual currencies (480 billion market capitalization), solid king’s second Bitcoin, but its usefulness is not simply monetary. Ethereum is also the blockchain most used for NFT like on exchange platforms. If Ethereum has a number of undeniable advantages, such as being able to store smart contracts in the blockchain or to program applications decentralized, it has some flaws that the transition to Ethereum 2.0 wishes to resolve. The speed low processing: only about 20 transactions can be made per second. Which generates transaction fees more expensive for the impatient. And a still basic auction system.
The main interest of a fusion would then be to reduce transaction costs, reduce processing time during a transaction and finally modify this auction system towards price automation.
From proof of work to proof of stake
To do this, Ethereum would move from mining its blockchain and proof of work to proof of stake. In other words, the proof of work was based on the resolution difficult calculations and therefore power to successfully validate the blocks. At the same time, proof of stake does not come from the power of a computer, but simply by the validation of an authorized user (that is to say having at least 32 ETH). The validator cannot corrupt the system, because if he does not accept enough transactions or just his own, he will have his authorization canceled and could even lose his wallet.
The success of this transition will depend on the future of Ethereum as a cryptocurrency.
Thanks to its Kintsugi test network to allow the “fusion” (The Merge, in original version), Ethereum allows developers todecentralized applications or users to familiarize themselves with the next Ethereum environment. This test phase will identify potential system problems and resolve as many as possible before the actual deployment, scheduled for early 2022. The success of this transition will depend on the future of Ethereum. as cryptocurrency. The community and the experts are divided on the subject. Some believe that this is the advent of the Ethereum network, while others believe that new cryptocurrencies will take its place, if the transition does not go well.
However, Ethereum still seems to have a bright future and its dominant position in several markets, such as DApps where the NFT, could allow it to resist, and / or to grow. The evolution potential of Ethereum being creative, and almost limitless, all eyes are therefore focused on Ethereum.
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