Wednesday, April 24, 2024

Ethereum 2.0 – A revolutionary step forward or a Bullish attempt to change crypto Market?

Cryptocurrencies are known for their precarious and uncertain trends. It is commonly heard that “The biggest risk is mediocrity”. But trust me in that, dealing with cryptocurrencies is no mediocre approach. The lure of becoming a billionaire overnight brings all into risk of investing into it. As far as Ethereum is concerned, it has seen various highs and lows, actually more lows than highs. So, a change in the policy or its operation was more or less inevitable. To resolve the issues like that of scalability and privacy, Ethereum 2.0 was introduced. Though, it might not have its first transaction till 2021.

  • What changes will be brought forward in Ethereum 2.0?

Lack of scalability and privacy remained the major problems in first edition of Ethereum. When Ethereum was launched, it was feared that scalability would bring detrimental effects to its operations. It was truly so, as it caused a huge loss. Joseph Lubin, the co-founder has claimed that Ethereum 2.0 would scale 1000 times more after 24 months of its launch. Secondly, privacy is what everyone seeks today. It was one heck of a problem to be dealt with. It is believed that they will surely work on it to improve the privacy significantly. And if these two issues are dealt with promptly, the future seems bright.

  • Was this change Inevitable?

Yes, without a shadow of any doubt. This had to be done as lack of scalability caused a huge concern. The prices were dealt with a hefty blow. They peaked at all-time best of $1432 a piece in 2018 to an extreme low of $101 in 2019. Ethereum was hit with a depreciation of nearly 80-90%, elaborating the fact how severe of a blow it was. Moreover, the critics and analysts were ready to jump in to dent it further. The foundations and the basic platform of Ethereum seemed pretty volatile and fragile. So, keeping all the factors in mind, the change was inevitable.

  • Is the future bright for Ethereum 2.0?

If the producers work to remove the issues like that of scalability and privacy, the future seems pretty good. Moreover, they are looking forward to build a whole new system for its operations i.e. Proof of Stake (PoS) system. This means, Ethereum will work solely with PoS and cut its energy by 99%. For those, who do not know how PoS works, here’s the answer. In simple words, when user stakes 32 ETH, he will be rewarded with freshly minted ETH. Thus, if this system is brought online, consumers will complete transactions by only 1% of energy consumed. All in all, it seems pretty good till now, we can only wait for its actual release to find out its practical implications.

Monesh Kumar
Monesh Kumar
Monesh Kumar is a cryptocurrency and blockchain enthusiast. He trades cryptocurrencies and holds some but he prefers holding Bitcoin, Ethereum & Cardano.

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