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Ethereum Update: If you’ve been tracking the price of the world’s largest cryptocurrency, then you know that bitcoin has risen to all-time highs while the second largest cryptocurrency has been equally performing and this time it’s back stronger. Read also: List of Lucknow Municipal Corporation bonds: Rs 200 Crore Bonds listed on the BSE; Things you should know
What is the performance of the virtual currency?
The second largest virtual currency in the world by market value has seen a 350% increase since the beginning of 2020. Last week, the currency briefly crossed $ 600 for the first time since June 2018 before falling to touch again. the same level this week. However, it is still a long way off its peak of Rs 88,125 which it hit on January 12, 2018. Ethereum has a market capitalization of $ 70 billion compared to Bitcoin’s $ 360 billion.
What’s new?
Ethereum 2.0, also known as Eth2 or simply “Serenity”, is an upgrade of the Ethereum blockchain. Those who have invested in Ether are waiting for the upgrade to its underlying network known as Ethereum 2.0, which aims to make blockchhain faster and more secure. One of the key challenges with the Ethereum blockchain today has been scalability. For example, in 2017, the popularity of an Ethereum-based game called CryptoKitties caused the network to become heavily congested, significantly slowing down trade. According to experts, the update will allow thousands of more transactions to be performed every second. Meanwhile, this could also cause further adoption of ether and an appreciation of prices.
Ethereum 2.0 will move from proof of work to “proof of stake”.
What happens in the “Proof of stake system”?
With this new system, the entities to validate the blockchain will be chosen through “staking”. Instead of solving puzzles, those who hold larger amounts of Aether and hold it for long periods will have a better chance of being selected as validators and thus generating commissions from validation. Those with 32 ETH (ether) can offer the stakes, a process that currently freezes their money for 1-1.5 years.
What are the advantages of the new system?
Switching to Ethereum 2.0 starting now should take 2-3 years, according to experts. One of the benefits includes reducing the cost per transaction, charged by miners / validators. The new system will allow ordinary people to earn some returns on their ethereum by participating in this new validation process while being in play.
In the case of Ethereum, this particular technology platform will allow building smart contracts, such as loan agreements. These contracts can be created by computer code without the intervention of courts or legal authorities and be executed independently (for example, by automatically seizing the guarantees).
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