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At a time when bitcoin has reached the maximum of a little less life ₹20,000, the second largest cryptocurrency in the world, ethereum or ether, is set to undergo a major transition that will help it overcome some of the challenges faced by even its greatest peer.
On Tuesday, Ether, which has a market cap of $ 70 billion compared to bitcoin’s $ 360 billion, launched ethereum 2.0, a faster, cheaper and more environmentally friendly system that will help it substantially reduce operating costs. .
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“The main benefit of moving to ethereum 2.0 will be a reduction in the cost per transaction, charged by miners and validators. This at the moment is ₹700-800 for a bitcoin transaction e ₹150-200 for Ethereum. It will also allow ordinary people to earn returns on Ethereum by participating in this new validation process (staking). These returns will decrease over time as the amount of ethereum wagered increases, but is currently around 18%. We at Bitbns will soon be launching a staking pool to allow our users to make some profits from staking, “said Gaurav Dahake, founder of Bitbns, a Bengaluru-based cryptocurrency exchange.
Ethereum is trading at $ 606 ( ₹44,605.49) currently, nearly five times its value of ₹9,625 in early 2020. However, this is still a long way off its peak of ₹88.125 on January 12, 2018.
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Bitcoin operates according to the “proof of work” model, which depends on miners, entities that solve complex mathematical equations to validate the bitcoin blockchain or the record of all transactions in the system. Miners charge transaction fees for blockchain validation, but the system requires a lot of computing power, which leads to higher electricity consumption and high cost per transaction. The need for more energy use has been criticized by environmentalists.
“Ethereum 2.0 has increased the number of transactions that can be processed per second. This, along with the lower cost of transactions, positions it to integrate, rather than integrate, bitcoin. Bitcoin will be seen more as a store of value, while the ether will be a medium for transactions, “said Ajeet Khurana, former CEO of a large Indian cryptocurrency exchange.
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