 |
| Ethereum's Next Update May Beat Bitcoin |
Cryptocurrency has changed the reality of money transfer and investment. In fact, it has proven its ability to retain its financial value on the one hand and bring very high profits to its owners on the other hand. Ethereum and Bitcoin currently dominate this market.
Ethereum coins are valued at $500 billion. While the amount is huge, it is less than half the total value of Bitcoin, the most popular and powerful cryptocurrency.
Ethereum and the system that runs it will soon receive extensive updates that can significantly increase the value of the token.
On the other hand, you need to understand the main difference between Bitcoin and Ethereum because Bitcoin is a digital cryptocurrency that allows exchange of financial values between users based on the blockchain system without any intermediaries including banks.
For this process to work properly, the network must verify all transactions. This is done by the user himself in a process called mining. But for everyone, the number of bitcoins available is limited, and this is no secret. In fact, by no means can the total number of bitcoins exceed 21 million.
Cryptocurrency Ethereum and Bitcoin
The way Ethernet works is similar to that of Bitcoin, except that Ethereum is completely different. It gives developers the ability to create applications and services on the blockchain.
This means that these services are managed by developers, for example we found services such as cryptocurrency exchanges, insurance systems and even certain types of games.
The Ethereum network includes so-called smart contracts. It offers an alternative to traditional contracts, but is registered in the blockchain network to ensure its authenticity and protect it from unauthorized changes.
On the other hand, however, there are some big issues with the Ethereum token, and the biggest issue could be the increase in the withdrawal commission rate known as the Gas Fees. Transaction costs average up to $44.
In addition, the coin faces another problem, which is the difficulty of verifying mining-based transactions. This is due to the proliferation of tokens, which means that miners need more computing power.
These issues prevent Ethereum from outperforming its rival Bitcoin, but the next update could fix all the issues called Ethereum 2.0. This is because the updated monetary system will be based on Proof of Stake rather than Proof of Work.
Without thinking about complicated details, the new protocol will eliminate the need for users to use powerful computing power to verify transactions. This new system has drawn a lot of criticism. Most notably the Bitcoin community as this method may not be secure.
The Ethereum 2.0 update is said to reduce the power consumption within the network by up to 99.9%, increasing the currency’s sustainability and reducing its environmental risks.