As of February 2022, the price of Ethereum is close to 3000 Dollars Within a week, prices began to rise. The beginning of 2022 saw a sharp drop in the price of Ethereum. On January 24, the price of Ethereum soared get down under $2200which is the lowest price for Ethereum since July 2021, and market prices have been fluctuating so far.
As for the last market conditionsInvestors change their investment portfolios. This indicates that New market cycle started with The Federal Reserve raised interest rates In March, helping to reduce inflation. L ‘Inflation increase was one of the The main reasons for the drop in the price of Ethereum and Bitcoin and it just shows that bigger volatility is expected in The future of cryptocurrency.
In such a case, more information is a must, and here are five Ethereum updates that you should not miss.
1) Ethereum 2.0 . update
As of February 4, 2022, Ethereum has a file Market capitalization is $365.2 million. Since its launch, the Ethereum blockchain has grown exponentially and continues to compete with Bitcoin. With the next update, Ethereum 2.0 it should drop bitcoin And it became the leading cryptocurrency in the world. However, the upgrade is still going on due to several issues such as congestion in network scalability, huge gas charges and it will be installed in phases.
So, What is the difference between Ethereum and Ethereum 2.0? Ethereum and most cryptocurrencies operate under a Proof of Work mechanism. In this technique, miners Solve various coding puzzlesadding blocks. that it Energy-intensive process A problem that affects the environment.
In short, Proof of Work is a self-sufficient mechanism Complex mining methodwhile the latter has a lot of mining operations Simplified and energy saving. It also makes the network more scalable, more accessible, replaces miners with validators, and removes their coins to hold. In case Ethereum 2.0 UpdatedEach validator must bet 32 ETH by depositing 21 official deposit contracts.
I highly recommend watching this latest video from Vitalik Buterin, founder of Ethereum on Jamie Tree, a channel linked to real financial updates.
So when is Ethereum 2.0 expected? As mentioned earlier, there is a big problem with network update, these processes are still in progress and will be carried out in 3 different phases.
This year, Ethereum will move to Proof of Stake, which is better and more secure than Proof of Work and after the merger, Ethereum will be at the most secure base tier.
Phase Zero of Ethereum 2.0 It is already active with its chain of beacons in the network. At this point, the registry manages the validators who create the blocks on the Ethereum 2.0 network. In stage 0, all structures for future stages are kept in place.
The goal of the first phase of Ethereum 2.0 It is the implementation of chains of parts and fragments.
divides transaction data on 64 blockchain in the network. All information is transmitted with More work mods In general to reduce the load on the network. The first phase of Ethereum 2.0 is expected to be implemented during phases two and Third quarter of 2022
After the first stage, there is a small stage called 1.5. It will be implemented shortly after launch and this stage will provide a bridge to Ethereum 1.0 and 2.0. Effectively blends in with major systems. Ethereum 1.0 will connect to the same beacon chain and thus will be treated as one of the 64 chains fragments carried out in phase 1.
Phase 2 of Ethereum 2.0 will start after docking process. It initiates interoperability between cross-sections and enables the development of decentralized network applications. At this point, you will be managing the network Smart Contracts and Transactions. It’s the last stage and it’s fully functional and this will be the stage Released in 2023.
2) Ethereum updates: Beacon Chain is active
Ethereum 2.0 is the most anticipated update by Ethereum fans. Beacons series activated on December 1, 2020, marking the first e The most important step In Ethereum 2.0. So what do string beacons do? In Ethereum 2.0, the beacons chain constantly scans and verifies all information. Correctly parse the blocks that reduce the rewards E Prevent harmful activitiesJust like a police officer on patrol 24 times; 7 hit 365.
beacons series not It changes nothing of the Ethereum currently in use in use. It will effectively link network maintenance as the initial consensus level. Beacons series are the main An introductory point for Proof of Stake systems in the Ethereum ecosystem. As shown above, this is a file Stage 0 or initial stage. I recommend you to watch this video from Secure Chain Systems, and be educated about the blockchain protocol. In this video, eth2 developer Danny Ryan explains the launch of the Beacon series and The future of Ethereum 2.0
The basic operation of the beacon chain remains the same and improves safety, Sustainability and scalability in the Ethereum ecosystem. The staking system will be linked to Ethereum through the beacons chain and is one of the The main features of the lighthouse series. this method It will enhance safety in the Ethereum network. Foreplay and verification is much easier than mining.
improve security e Reduces unwanted energy loss. Improving the decentralization aspect of the system will directly increase the security aspect. Another aspect of the lighthouse series is Adjust cutting chains. The beacon router chains will insert segment chains into the network after the backbone networks are connected. Network capacity will increase It will improve the speed with which transactions extend. The network is allowed to Grow by 64 Blockchain.
3) Ethereum merges with Beacon Chain
It is the most anticipated time for Ethereum investors. fusion stream Ethereum network with beacon chain will display Guide to the quota system. Technically, this represents Converting the Proof of Work method to the Proof of Stake method. It’s called docking and this update will happen in The second quarter of 2022. Currently beacon series Shipped separately from the main network. So far, the Ethereum network is Still working manual The beacon chains run in parallel using
During the merge, the two systems merge and the Proof of Work stops working. So What do you expect after the merger of the beacon chain and the existing Ethereum network? There will be no need for mining and miners will invest in betting in the new Proof of Stake system. An important fact is that some features such as withdrawing ETH in staking will not be supported. I Planned separately To update after merging.
4) Ethereum internal modifications with chains of parts
After completing the file Integrating the Beacons Chain with the existing Ethereum network, the next step is to insert chains of parts. They provide an extra layer of storage for various applications and are much cheaper to store more data.
It increases efficiency and provides easy access to data but does not support implementation. So technically, hashing is a procedure in which a file is createdThe entire database of the Ethereum network is split horizontally. It distributes the load evenly. This way, the general case will be less clear.
Thus, it is possible to do More transactions per second Create new strings. All of these new chains are called fragments. that it Network sharing will improve It can be easily accessed via a laptop or simply a mobile phone.
5) How much will Ethereum be worth in 5 years?
With all these updates online, Ethereum prices are It is expected to increase in the coming years. In the most popular altcoin, experts predict that it will increase in value towards the currencyThe last quarter of 2022. Since its launch, ETH has grown exponentially in value from $0.311 to $4,800 last year.
One of the main advantages of Ethereum is the software network Promotes to developers To create it and promote new applications, tools and currencies. The Ethereum blockchain has wide applications and is not limited to cryptocurrencies only.
Return on investment approx 300% on an annual basis. In 2014, most investors have Quadruple their investment. Moving Ethereum to a much lower power version more sustainable And on a very large scale. Until then, experts were told to wait and watch. Check out this video from Investing in a simple way. Nathan Sloan’s experience in financial services makes money and investing easier.
Compared to other cryptocurrencies, Ethereum has an extension A bigger and brighter future its true applications. Ethereum can too Great value store And he has a choice Exceeding $660 billion In the market capitalization of cryptocurrencies. There are many changes in store for the Ethereum network. Most industry experts expect a Ethereum price increase. Some experts also believe that Ethereum Could Overwhelm Bitcoin.
Personally, I think Ethereum has a file The plane is stable and moving in the right direction To reduce energy costs and switch between Proof of employment proof of participation. Change will make Ethereum more Energy Efficiency And easy to use It will increase its use among the masses.
With cryptocurrencies making headlines every day, most people will be aware of this flow and can make an informed decision when Ethereum 2.0 reach the market. It will be an added bonus when the fans are ready and can learn about Advantages of Ethereum 2.0.