Ethereum 2.0, or how ETH can make a major turnaround in the history of cryptocurrencies?
A number 2 looking to be the first
Ethereum’s future potential could be huge. Some voices also speak of Internet 3.0, the Internet of values, the Internet of tomorrow. In view of the possibility of creating your own dApps and DAOs on the platform, that is not so absurd to think.
While the price of ETH rose a lot in early July, it fell significantly in the middle of the month. Most recently, it plunged well below the $ 2,000 mark, although it rallied shortly after.
Number two could soon be number one
But why does the biggest altcoin have so much potential? The key to this question is in the update known as Ethereum 2.0.
According to what was reviewed by Anycoin Direct, one of the websites with the most information about cryptocurrency, the new features of this update are already very popular, despite the fact that it was launched a few weeks ago.
Part of the final form of Ethereum is, among other things, the ability to generate more ETH through staking.
The new proof of stake locks a certain part of the participants’ assets (also called validators) and stores them in a smart contract.
The validators practically take over the work of the miners with proof-of-work algorithms and receive a commission in return.
Some exchanges offer participation pools, where a large number of investors store the necessary ETH and finally provide a validator together.
Since the inception of Ethereum 2.0, ETH has already risen by more than 130%.
But despite the update, high gas fees make it unnecessarily difficult to manage the ethereal blockchain.
Vitalik Buterin, co-founder of the Ethereum blockchain and cryptocurrency, has already promised an early solution. This is urgently needed due to average gas rates of nearly $ 15.
In July, a new update should slash rates and improve performance.
This will be done through a zero-knowledge process, the goal of which is to increase network performance a hundredfold. The network upgrade was accepted by the miners with a narrow majority.
Ethereum: the most important partnerships
As a comprehensive platform for decentralized applications, Ethereum offers numerous application purposes.
The ethereal network has numerous options for companies and developers, in particular, to put their own applications on the blockchain.
Ethereum already serves as the infrastructure base for a host of applications, such as decentralized exchanges, NFT marketplaces, decentralized financial applications (DeFi), or crypto games.
Many of these projects can be seen as a partnership between Ethereum as a service provider and the teams as an executive unit.
In general, partnerships are an important factor in the long-term success of an encryption project.
As one of the most recognized projects in the world of cryptocurrencies, Ethereum can already register numerous collaborations with companies.
More than 350 companies already use the platform for all types of applications, including renowned representatives such as Nike, Barclays, FedEx, Microsoft, Intel, Amazon, Ubisoft and Reddit.
The diversity of the companies mentioned shows that Ethereum can be used in every imaginable area.
In particular, the news about the integration of Ether into PayPal’s trading platform caused a stir. The popular payment service provider allowed its millions of customers to buy and sell ETH directly.
But Visa’s transaction network will also depend on Ethereum in the future. Visa uses the platform for the integration of USD Coin (USDC).
This means that the crypto platform developed by Vitalik Buterin will find its way to one of the largest traditional payment networks.
Furthermore, many neo-popular brokers also offer ETH as a trading option for their clients. While brokers like Revolut and Justtrade, the popular Trade Republic neobroker also allows the purchase of ETH and other cryptocurrencies.
The most important factors of Ethereum
The evolution of the price of Ether (ETH) can be influenced by many different factors.
Scalability: The ethereal blockchain currently handles around 15 transactions per second. This is not enough for a wide application. If ETH continues to grow like this and more and more apps and smart contracts are created, there will be long-term bottlenecks. Users were able to experience a preview of this with the introduction of cryptokitties. But: According to Buterin, Ethereum 2.0 should allow up to 100,000 transactions per second in the long term.
Competition: Ethereum was the first blockchain of the second generation, but it is no longer the only one. Projects like NEO, Tron, and EOS offer similar services and want to claim the same niche for themselves.
For example, NEO handles 10,000 transactions per second and has a better consensus algorithm. Therefore, Ethereum has to come up with a lot of things in order not to be left behind in the competition.
Despite these disadvantages, there are many points that speak in favor of a positive price development for ETH:
Reputation: Ethereum is one of the oldest blockchains out there. Since 2017, the company has consistently ranked second in terms of market capitalization.
Stability: Like all other cryptocurrencies, Ether is subject to the usual price fluctuations and is also influenced by bear and bull markets. But compared to other crypto projects, the volatility is much less pronounced.
Growth potential: the number of dApps is continually growing. Many startups and developers build their applications on the Ethereum blockchain. According to the dappradar.com ranking, more than 1500 dApps have been created on Ethereum so far. No other blockchain can boast more.
Functionality: Ethereum Blockchain offers a variety of possible uses. Smart contracts and dApps are used successfully in countless industries. This creates healthy demand that can have a positive impact on Ethereum’s forecast.
Government Support: The Canadian government wants to investigate how it could use the Ethereum blockchain for regulatory prosecution. If Canada were to succeed in this step, it would be a signal for other nations to address this issue as well.
Solution approaches to the scale problem: Ethereum developers are aware that their blockchain can only survive in the long term if they can control the scalability problem.
Therefore, they have been working on ways to solve this problem for a long time.
Among other things, they changed the consensus algorithm from proof of work to proof of stake.
Other measures are the introduction of the plasma and sharding protocol, which the company is working on. With Ethereum 2.0, the developers have taken the first step.
Where to buy and learn more about Ethereum?
Anycoin Direct is a cryptocurrency exchange based in the Netherlands, which allows particularly easy and fast entry into cryptocurrency trading.
The company was founded in 2013 under the name Bitplaas and has been known by the new name since July 2014.
Anycoin Direct offers detailed FAQs on its website, clarifying the most common questions from customers.
This is an important addition to the platform as the content is helpful for both new and experienced users in the world of cryptocurrencies.
Among them are the “What is…” pages, where you can find articles that explain what Ethereum or other cryptocurrencies are, such as their page about what Ethereum is; another of prices such as the price of Eitcoin, where they explain how the price is determined and talk about the history of the prices of each crypto; Wallet pages, where investors can find information on the best cryptocurrency wallets.
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Disclaimer: This press release is for informational purposes only, the information does not constitute investment advice or an offer to invest. The opinions expressed in this article are those of the author and do not necessarily represent the views of CriptomonedaseICO, and should not be attributed to CriptomonedaseICO.
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