Ethereum: The transformation that could see it overtake bitcoin

Ethereum

Introduction to Cryptocurrency

Globally, different cryptocurrencies exist, including bitcoin and ethereum as the two most valuable. Although the latter’s value has been rising rapidly, it still falls short of bitcoin that’s almost twice its current value of 500 billion U.S. dollars. However, this margin is expected to decrease as several underlying changes are implemented.

Comparing Them

The operational concepts of these cryptocurrencies slightly differ. Bitcoin uses a blockchain technology that facilitates value transfer among people globally, negating the need for an intermediary like banks. Centralized computers manage all bitcoin transactions. Its value is maintained high by holding a maximum of 21 million tradable bitcoins.

In contrast, ethereum doesn’t rely on the centralization of computers to manage any transactions. Although it uses blockchains like bitcoin, its developers develop many blockchains to ensure the system runs without a hosting company, enabling various transactions to happen seamlessly, including gaming and insurance services. However, people have to enter into contracts, from which the one purchasing a product pays gas fees. The upgrade under pipeline has been due to ever-rising gas fees, resulting in a high expectancy of the new release.

Expected Changes

With ethereum’s demand increasing daily, its gas fees continue soaring high, besides the issue of congestion. Its expected release of version 2.0 will solve this problem by shifting from the current “proof of work” to the “proof of stake” system. The upgrade hasn’t been smooth as expected, as it has been running for over two years, resulting in gradual upgrades being done. People are currently paying ether, the payment mode for this cryptocurrency, for either of the two cryptocurrencies under use.

The final release will be called Altair, and it’s expected to have massive effects on bitcoin’s value. Its proponents are expecting it to topple bitcoin if the perceived improvements occur. For instance, the new system will handle approximately 100000 transactions every second, a massive upgrade from the current only 30 transactions per second, making it more affordable for use. This change has not been easy, with other cryptocurrency companies such as Solana taking the drag to enforce their fame among crypto users.01459.

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