Ethereum( (ETH) has always managed to stay neck and neck with the leading cryptocurrency option, Bitcoin (BTC). Still, with the latest upgrade to the operating system, ETH now has more of a chance of becoming the number one in the market.
For those of you that have not heard yet, Ethereum, the blockchain which operates ETH, has successfully completed a highly anticipated upgrade, set to minimize the power needed to generate new coins as well as carry out transactions.
The crypto industry is ever evolving, with more and more competitive offers coming users’ way. Already ranking in as the second most successful cryptocurrency, Ethereum knew it needed to do something drastic.
Originally coming up with the idea in 2020, the Ethereum team has worked non-stop to bring the major merge to reality. With the merge now in effect, users can expect faster, more secure operations, as well as a wider reach of access than ever before.
The Ethereum upgrade to ETH 2.0 was expected, with the plan to improve the operations of what people know the blockchain to be. The multi-phased merge includes the offering of enhanced scalability, the Beacon Chain, the Merge and Shard Chains. This is not all; ETH 2.0 also converts the consensus method from proof-of-work (PoW) to proof-of-stake (PoS).
Already holding a place in history as one of the most successful cryptocurrencies, Ethereum has always impressed the masses. Still, with the bold move of the upgrade, the coin’s potential has improved drastically.
According to experts in the field, the major ETH upgrade is a monumental moment for the crypto sector, which holds a market value of US $1 trillion. With the improvements to the system, Ethereum improves its comparability to the dominant BTC, allowing room for price spikes and increased usability.
The usuality could be tracked by the projected increase in app usage and the steady rise of the ETH price, which has seen an incline since June, which isn’t the case for Bitcoin, whose price has dropped drastically in the last 12 months.
Ethereum operated on proof-of-work before the upgrade. Proof-of-work requires huge amounts of computer power to complete, often receiving criticism from the general public. The action of proof-of-work is the blockchains are secured and verified by ‘virtual’ miners situated globally. For the transaction to be approved, someone needs to solve the math problem. The miner, faster enough, will then get to verify the transaction and receive compensation.
Proof-of-stake, however, is a significant upgrade, allowing for decreased computer power, quicker times, and more appealing features. This upgraded consensus mechanism for blockchains was made a reality by Ethereum, which works by randomly selecting validators. The validators will be picked in correlation to the quality of holding in the digital coin, directly negating the amount of computing power needed per transaction.
There is no doubt that Ethereum’s shift to upgraded systems is guaranteed to have a lasting impact on the industry. Currently defined as a monumental moment in crypto, ETH 2.0 has changed the game of cryptocurrency, increasing its competitiveness towards fiat and lowering the power required to complete transactions.
With this significant shift, we are sure that the crypto price fluctuation will be incredibly active over the next few weeks until it evens out, with ETH projected to show BTC more competition than ever. Keep updated at The Bitcoin Strip and get invested today to experience the shift first-hand.
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