In 2021, we have seen the largest commissions on the Ethereum network since its launch. The reactions were numerous.
Different personalities from across the cryptosphere have their own views on what’s expected for cryptocurrency number two.
There is an opinion from the developers, from the miners, and of course also from the investors. The update Ethereum 2.0, which is expected in the near future, it will change the way the platform operates and how it is used and viewed by developers, miners and investors.
In short, Ethereum 2.0 is a multi-year plan for improve network scalability and security. It was designed to ensure that Ethereum’s core principles of decentralization are not compromised.
It is evident that, if this update is done as planned, the Ethereum network will be able to handle an exponentially greater amount of transactions per second, greatly improving its usability, and perhaps its growth and adoption.
The launch of the EIP-1559, which is expected but not 100% confirmed for June this year, as part of the hard fork “London“, Aims to introduce a mechanism to regulate the current auction process, which determines the value of transactions.
Fees will be dynamically adjusted, allowing users to pay the lowest bid per block. As a result, the fees will be burned dynamically, reducing the issuance before the Proof-of-Stake consensus algorithm runs.
The consequence of this is that, in the coming years, ETH could become the hardest asset to earn on the world’s safest blockchain, and potentially dethrone Bitcoin from the top of the cryptocurrency rankings.
The current state, Ethereum has a gas tax problem. This problem has allowed many other smart contract platforms to grow and develop, giving Ethereum even more competition.
For example, we’ve seen projects like the Binance Smart Chain gain an immeasurable amount of attention. It will be interesting and exciting to see how the markets react to all the improvements the Ethereum Foundation has in store for the crypto space.
The rationale is that if Ethereum 2.0 delivers on its promises of low fees, high availability, supply burn, and benefits from the explosive growth of decentralized finance (DeFi) that is reshaping the cryptocurrency and blockchain ecosystem, the price of Ethereum can only go in one direction, upwards.
Info about Zenfuse
The care of Alex Peresichan, CTO of Zenfuse. Zenfuse is a trading platform with integrated connectivity to major exchanges, next-generation tools, analysis, portfolio management and news aggregation. All provided in an ecosystem that is fully extensible by developers.
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