What is the future of Ethereum?
Ethereum's future is of interest to the entire crypto world, as it is the second largest cryptocurrency in the network, ether. On the other hand, a large part of the blockchain development is also taking place on this network.
The network development map promises a number of very interesting and ground-breaking changes in the coming years. They promise to completely disrupt the crypto world as we know it and to completely change the way we have always viewed cryptocurrencies and the whole ecosystem that is associated with them.
Ethereum has maintained its second place in popularity and market capitalisation behind Bitcoin in the current market. It has managed to remain relatively stable in a rather turbulent market, especially compared to altcoins. Of course, there have been significant drops and bounces on the ether graph, so it has been possible to make a nice profit even when trading down. And those who did this trading with the trading software we offer in various packages were able to automate their profit making.
What is Ethereum?
Founded by Gavin Wood and Vitalik Buterin in 2015, Ethereum is currently the second most popular cryptocurrency after Bitcoin. However, unlike Bitcoin, the Ethereum network is designed to be much more than just a cryptocurrency. Ethereum is a decentralised computing network based on a blockchain. As such, those with the skills can use the free source code as they wish and create new blockchain-based software.
The core of Ethereum is the blockchain network. The blockchain itself is a decentralised public ledger where transactions on the chain are recorded and verified. Its decentralisation stems from the fact that each participant in the Ethereum network owns a perfect copy of the ledger. And whoever has it can verify all transactions on the network. Transactions on the blockchain are also verified and encrypted using cryptographic methods.
The ether and its mining
The currency of the Ethereum network is ether, which can be created by mining. Mining involves the miner creating a block of transactions, which is then added to the Ethereum blockchain. Currently on the Ethereum network, rewards are based on proof-of-work (PoW), i.e. participants receive ether based on how much they have contributed to the creation of a new blockchain. The details of cryptocurrency mining were also covered in a previous blog article.
The PoW system is currently considered obsolete, so the future of Ethereum will be significantly affected by when they manage to move to a new and better solution.
The future of Ethereum: Ethereum 2.0
Open source development of the Ethereum network is currently in full swing, with the aim of significantly upgrading the network to Ethereum 2.0, which will include a major shift from PoW to PoS (proof-of-stake). By making mining a security deposit rather than a job, they will be able to significantly reduce the huge power requirements of the network. This element of the development is also referred to as "The Merge".
Another innovation is the introduction of a multi-chain technology instead of the current single blockchain. This will make the processing of transactions faster and cheaper than the current system, and pave the way for further cryptocurrencies and innovations.
If you have any questions about cryptocurrencies, crypto trading or anything else related to this topic, feel free to contact us at one of our contact details!
