Once it implements the more environmentally friendly Proof-of-Stake algorithm, Ethereum can potentially displace Bitcoin as the leading cryptocurrency.
The second most powerful cryptocurrency, Ethereum, traded heavily with Ethereum trading bot software in 2022, is scheduled to undergo a significant software upgrade around September 15.
This event, which is known as “The Merge,” has caused enormous enthusiasm among lovers of the crypto scene and everything related to it.
Timo Emden, an analyst at Emden Research, said, “the network that underpins it is to be made more scalable, more secure, and most importantly, more sustainable.”
Omar Syed, who is very knowledgeable in the field of cryptography, feels the launch of “Ethereum 2.0” is quite interesting.
The co-founder of Shardeum, a company that generates “smart contracts,” which allow payments in Ethereum to be tied to conditions, has stated that there will be drama surrounding “The Merge,” but that there are no technological problems. This information comes from the co-founder of Shardeum.
Ulrich Stephan, the chief investment strategist for private and corporate customers at Deutsche Bank, believes that Ethereum would have a significant edge over Bitcoin due to the project’s ability to save 99% of the energy that is required for the processing of transactions.
Even though he is skeptical of the hype, he did mention that “some market experts even predict that Ethereum may evolve to become the most valuable cryptocurrency due to its reduced environmental difficulties and bigger sectors of use.” While skeptical of the hype, he mentioned that “some market experts even predict that Ethereum may evolve to become the most valuable cryptocurrency.”
When Can We Anticipate a Change in the Status?
A potential shift in the absolute highest point of the Bitcoin market is referred to as a “flippening,” which is a famous slang word among crypto fans.
Bitcoin’s value, based on its current price of $394 billion, is about double that of Ethereum’s value. Despite this, the latter is making rapid progress in catching up.
The price of Ethereum has increased from around $900 in the middle of June to its current level of over $1700, although the price of Bitcoin has only increased by over 16%, to around $21,000. This increase can be attributed to preparations for The Merge.
Alex Miller, the chief executive officer of Hiro, a firm that offers training for software engineers working in the cryptocurrency industry, believes that “flipping” is not always achievable, even in the event that an update to Ethereum is completed successfully.
He projected that because of the ongoing and considerable relationship between the values of cryptocurrencies, a rise in the price of Ethereum would likely result in a reduction in the price of Bitcoin.
Miller, on the other hand, expresses concern that the sector might lag behind by ten years in the event that the upgrading is not successful.
It Is Being Replaced with Something Called “Proof-of-Stake”
A modification to the transaction validation process, which has been repeatedly postponed due to concerns over technology, is an essential part of “The Merge.”
This was accomplished using “Proof-of-Work” in traditional digital currencies such as Bitcoin. Users combine their resources to verify the legitimacy of transactions. This is accomplished by adding the transactions, in an encrypted form, to a distributed ledger known as the blockchain.
The Bitcoin digital currency, on the other hand, are awarded to the solitary “prospector” who finishes the computations the earliest in this competition. Everyone else is at a disadvantage, and the utilization of their resources resulted in a loss.
This enormous energy usage, which is believed to be comparable to that of a small nation, is sometimes presented as evidence that cryptocurrencies are detrimental to the environment and therefore to be avoided at all costs.
The user who can demonstrate that they have the largest stockpile of digital Ethereum coins at a specific time will be the only user who can validate and encrypt transactions using the “Proof-of-Stake” method in the future as part of the “Ethereum 2.0” project.
This will take place in the future. This results in requiring only a single computer to handle orders, rather than the usual one hundred or one million. Several other currencies currently employ this strategy either totally or partially, depending on their needs.
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