What is Ethereum 2.0?
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Most people within the cryptocurrency space are already familiar with Ethereum. As it is a more advanced and widely used cryptocurrency, Ethereum 2.0 will help boost its trajectory – taking the currency to new heights with better speed, efficiency, and scalability. This is still the beginning for the decentralized, open-source blockchain, as future versions will be the main stage of the currency.
With rising popularity, there are already more Ethereum transactions taking place than Bitcoin transactions. Recent stats from Statista show that Ethereum was processed more than 1.1 million times per day in December 2020. This was more than six times compared to Bitcoin, which saw only 330,000 daily transactions that month.
Also known as Eth2 or “Serenity”, the recent upgrade is the Beacon Chain which is the first Ethereum 2.0 addition to the ecosystem. Eth2 describes a set of updates that will help unlock the currencies full potential. Currently the only live update of Eth2, the Beacon Chain brings staking to Ethereum to lay the foundation for future upgrades taking place. Shard chains, estimated to launch later this year, will have more phases and gain features over time. The final phase will enable staking the networks and start the end of energy-intensive mining, on schedule for a 2022 release.
Ethereum is already overtaking Bitcoin as the leading DeFi protocol infrastructure and network. Although Ethereum doesn’t have the market cap of Bitcoin yet, the applications of Ethereum are varied and could definitely outpace Bitcoin. While the proof of concept of Bitcoin was great, I do not believe it will be the coin of choice for payments when crypto is more widely used. As the price of Bitcoin continues to appreciate, so will its volatility.
Whether you’re a long-time Bitcoin supporter or Team Ethereum, there is no denying Ethereum 2.0 has been pivotal in the evolution of the Ethereum blockchain. What are your thoughts on Ethereum 2.0?
