Ethereum towards transformation! Ready to bypass Bitcoin

World Cryptocurrency It is controlled by the two giants of the market as they are Bitcoin And Ethereum.

At the moment, the market cap is strongly skewed in favor of Bitcoin with price That fluctuates around $40,000 per unit, between highs and lows, compared to just $3,000 per token per Ethereum.

However, recently there is some important news for Ethereum It can change cards forever and drive cryptocurrency to reach i Bitcoin as unit price.

Ethereum has in fact announced that this year’s long-awaited Blockchain passage to proof of stakea new validation protocol that will allow for greater scalability and lower commission costs, all with minimal environmental impact.

In the comparison between Bitcoin and Ethereum, it is forgotten if i BTC It is the first cryptocurrency born in the world, which also has its strength in the special feature of having a very limited supply equal to only 21 million tokens, The potential of Ethereum instead lies entirely in the Blockchain.

In fact, Ethereum is the first open source blockchain It has never been made available to everyone and thus is among the most widely used for developing applications and operations such as minting NFTs and creating metaverses. However, the dominance of Ethereum suffers from a constant threat from competitors, Binance And Solana To name a few, which has lower commission costs due to the use of a different verification protocol.

passage Ethereum in PoS It will mark a new era for Blockchain, which could positively impact the price of the original cryptocurrency ETH, leading it, hopefully, one day to match and surpass Bitcoin.

What do Ethereum and Bitcoin have in common?

At this moment, one thing Bitcoin and Ethereumwhich are two independent blockchains, share a protocol they use to validate transactions called Proof of work.

The proof of work It assumes that new tokens are generated using mining and that all transactions and operations in general on the Blockchain are energy-intensive operations that are performed by hardware Very strong.

No work at home Mining He always focuses on countries where the cost of electricity is low and this is precisely because mining hardware is incredibly powerful.

In fact, these computers work together with precision dcalculations It is complex and, once the solution is found, is rewarded with new tokens that have been mined, which is why creating new digital currencies is called “mining”.

Why is Proof of Work an obstacle for Ethereum, but not for Bitcoins?

Currently proved to be a point of contact between Ethereum and Bitcoin It is the verification protocol used, and specifically this aspect of Blockchains has two downsides, yet it affects two cryptocurrencies to a different extent.

First of all, the environmental impact that makes crypto resources developed on these two highly polluted blockchains. Second, this massive energy demand translates into very high cryptocurrency fee costs, for which Ethereum They are known as Gas fee.

If this is for Blockchain Bitcoin Betting everything on the original cryptocurrency BTC isn’t a big limit, it’s huge Ethereum. Because its nature as an open source Blockchain poses problems when developing new projects such as NFT (Non-Fungible Token) Or new cryptocurrencies, since then commissions incur very high costs due to maintenance Proof of work. This is why more and more developers are now inclined to favor competitors like Solana for creating cryptocurrencies and minting NFTs, which are more sustainable and cheaper alternatives.

This need has prompted Ethereum to adapt to the times and expand its catchment area with the transition from Proof of Work, in which Bitcoin, at most, remains firmly entrenched. sustainable and cheap Proof of stake.

A simple and clear comparison of Differences Proof of Work (PoW) and Proof of Stake (PoS) are presented by a YouTube video created by ETA encryptionwhich we suggest below:

In-Depth Terms: What is Ethereum and Ethereum 2.0

As for terminology, we put aside bitcoin, There is now Ethereum based proof of work, from Ethereum 2.0i.e. Blockchain and Cryptocurrency based on Proof of Stake.

Suppose this distinction, which does not exist in practice, is confined to the domain of terms only and is destined to disappear by mere integration (Merge) It will be complete. This means that there will never be any Ethereum 2.0 because the Ethereum Blockchain will simply move from scratch to the new protocol, but there will only be one native cryptocurrency. (ETH) And only one Blockchain will use an extension POS As a protocol and no longer PoW.

practically, Ethereum 2.0 It is a term used only to refer to an intermediate stage, the current stage, when the migration from PoW to PoS has not yet completed and we are in the process of transition.

Price Predictions: Will Ethereum Reach Bitcoin in the Markets with the Switch to PoS?

Ethereum’s move to PoS could finally mark the long-awaited bullish trend for Cryptocurrency ETH whose market value will hopefully be equal to bitcoin soon.

As for the timing of the transition to PoS, technically it is called “Merge”, This will be done by the end of the second quarter of 2022, that is, by July.

A few weeks ago, the general test for immigration to POS, Which gave a positive result and then Ethereum announced that everything is ready to leave the era proof of work this year.

with the transition to POS It will mean that the currency dNew ETH Tokens All in all, not all cryptocurrencies that run on Blockchain will be with Mining It will not require anymore hardware Powerful, with significant savings on gas charges which is a major limitation for the applications you are currently working on.

Transfer to PoW This could really lead to Ethereum having no competitors by causing the native cryptocurrency’s market cap to go up. ETH. Because this would give Blockchain the opportunity to bypass cheaper competitors and regain absolute dominance in the Blockchain market.

When will the move to Ethereum PoS start the cryptocurrency bullish trend?

regarding Price forecastHow we wish Ethereum Bitcoin may soon reach the top of the cryptocurrency with the largest market capitalization, and may have to wait a while.

According to many analysts, in fact, the move to PoS will only show its beneficial effects in the long run, given that at the moment the explosion is specifically undermined by many blockchains such as Solana o Binance who has already stolen a large market share from Ethereum.

Think of the NFTs where the long-dominant Ethereum is now seeing increased minting activity on platforms just like Binance Which does not contain expensive Ethereum gas fees.

For Bitcoin, at the moment, Blockchain traffic to Proof-of-Stake is excluded, also because BTC As we have said, they have different needs and remain firm even now in view of other needs Proof of work.

Collaborator in editing, born in 1984.
I have a degree in classical philology and a doctorate in ancient history fromUniversity of Naples Federico II, with a treatise on the fragmentary work of Asclepid de Tragello. I am an author Scientific Publications About the Classical World and co-editor of two international academic volumes. Since 2015, I moved to England where I worked as a freelance copywriter and casino dealer.
My motto is? “Naples is a flower of paradise. The last adventure of my life.”

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