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- ETH 2.0 to have numerous advantages like sharding and PoW system to enable a smoother user experience
- Whale movements have triggered market volatility that sent the price plummeting over the last week
- The total Ethereum staked stands at $5 million for the upgrade that will take place later this year
Vitalik Buterin, co-founder of the world’s second largest cryptocurrency, has managed to do the undoable and become a hero in the eyes of many. He envisioned ETH 2.0 and is on course for a successful implementation. The Beacon Chain launched in December 2020 was part of a switch that will soon reduce rising gas fees on the network. The developments over the upgrade had helped it to reach an all-time high price of $4,358 this month. The current value of ETH staked is $14 billion that should see the blockchain network sail to a brand new technology.
Proof-of-Stake and sharding will benefit validators
The Proof-of-Work (PoW) system had numerous performance issues that failed to validate transactions. In such a system, it used to be difficult for validators to carry out functions and maximise throughput gains. ETH 2.0 will address all the major shortcomings and maintain the security protocols as well. PoS will decrease chances of an outside attack on the servers and punish validators for each faulty transaction they validate.
Sharding will improve Ether’s ability to scale and make it more efficient. All participating nodes have to verify to create a new block of transactions and is hence limited by the slow speed of some participants. Under sharding, all the nodes will be assigned specific tasks which will allow parallel processing of transactions. It will turn the network even faster and improve user experience on a larger scale.
Whale movements accelerate amid market volatility
The recent uptick in cryptocurrencies was prevalent in Ethereum as well. The currency that has a market capitalization of $310 billion slid -53.8% within a week propelled by whale movements. Investors with more than $100,000 sold their investments after making profits at significant levels. Furthermore, the demand and supply of NFTs and products related to Decentralised Finance (DeFi) have played their role in market volatility as well.
Buterin’s public holding of ETH has a value of $1 billion, while smart contracts hold nearly 23% of the total supply of Ethereum. Time will be witness as to who will reign superior than Bitcoin. As of now, Ethereum is leading the fight with its upgrade to the Lightning Network that will help faster payments for NFTs and various other products.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
