Ethereum 2.0 – Global Adoption Perspective

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Blockchain has changed the way we look at online transactions, and its product, cryptocurrency, has changed the term ‘secure’ when it comes to online payments. If you’re even remotely familiar with the technology, you’ve already heard of Ethereum. It’s the second-largest cryptocurrency in the world, following only Bitcoin. 

ethereum2.0

Ethereum 2.0, also known as Eth2, isn’t a new blockchain; it’s an upgrade to the existing one. So, what’s the point of creating a new version of the existing one that seems to be doing so well? Simply put, it’s designed to fix the bottlenecks in Ethereum that were preventing it from scaling fast and enhances transaction speed.

Will Ethereum 2.0 Scale Better Than Ethereum Classic?

Even though many websites list blockchain projects as analogous, the blockchain stack unites very different projects aimed at different niches. Proof-of-work (PoW) vs. proof-of-stake (PoS) dichotomy (mining concepts) is one of the main distinctions in those projects. Experts claim that the future of cryptocurrencies will be divided since they’ll need to adapt their technologies to fit better into their specific niche.

Ethereum ecosystem has decided to pursue a high-performance strategy with their new version – Ethereum 2.0. A new version is able to perform up to 10.000 transactions/second compared to 30 transactions/second with Ethereum Classic. So yes, the short answer is that Ethereum 2.0 is definitely capable of faster scaling than the ecosystem’s older blockchain version. They’ve scaled transactions per second which will support the project’s roadmap of having a PoS consensus mechanism and other features to continuously be winning business in powering smart contracts, which is the project’s significant contribution to the industry.

Smart Contract in Crypto is a self-executing application that allows execution of pre-determined conditions without human or other involvement. Basically, two parties agree to make a transaction in cryptocurrency. Then it gets to the blockchain (think database). So here comes a smart contract that allows transferring digital money into goods transported around the world. If all the conditions are met – the process automatically moves on. Goods delivered, insurance claims are released, you name it. I like to think of a smart contract as of executed business process or a code (“if/then”).

But there is still room for Ethereum Classic. The ecosystem has made an educated choice to pursue a high-security strategyIt means that ETC is ready to tradeoff performance for the sake of higher security.

Impacts of ETH 2.0 on Crypto Markets

Even though the billionaire Founder of Ethereum admits that the release of Eth2 is delayed in his latest interview since the technology is way more labor-intense than he had anticipated, public expectations for the project are very high. Many new blockchain explores arise that work specifically with ETH 2.0. Provided that Ethereum 2.0 is going to consume 99.95% less energy than, say, Bitcoin, that needs the energy of Hong Kong to keep going. That’s possible thanks to the PoS concept that Eth2 will utilize. With global criticism rising against the PoW model, there is no doubt that the release of a powerful product powered by PoS will change the way blockchain is being perceived and can potentially become a breakthrough that will make crypto and blockchain mainstream.

As you might have guessed, Ethereum isn’t the only player trying to win the market. Similar to Windows and Apple, which collectively cover 93.7% of the market share of PC OS, experts believe there will be two organizations covering all the demand for DeFi platforms. That seems like a situation where the winner takes it all, so that’s one more reason for Eth2 to hurry up.

DeFi (Decentralized finance) platforms allow people to borrow/lend funds, speculate on price range, and so on, meaning that it’s a highly transactional business model, for which speed is essential. 

Just because Eth2 wasn’t rushing to come out, the Ethereum ecosystem has lost many users who have switched to Binance Smart Chain. The competitor was launched last year and already uses the PoS model (read: cheaper for the users). However, the game isn’t over yet. Many users are utilizing BTC as a temporary solution until Eth2 comes out because the latter has more developers, validators, and experience. Cryptocurrencies depend heavily on the “network effect’ just like social media platforms do – whichever player has the largest number of users can deliver the most significant benefits. So it’s all up to Ethereum now to determine if they’ll catch the train since the trend is clear – PoS is the future of the DeFi.

How Does This Affect Users and Developers?

At Scaling Ethereum Summit, its founder has mentioned several important things that are going to happen after the merge of two blockchain merges:

  • Post-merge cleanup: Users should expect some redundancies and bugs to be fixed.
  • Sharding will come out: Another highly anticipated feature that will allow for processing transactions in parallel thanks to mini-blockchains. That’s one of the most ambitious projects. That’s why they want to release this feature separately.
  • Security improvements and many other updates are in the roadmap.

All those changes will have a drastic effect on the bottlenecks that are bringing Ethereum down today. The congestion is so massive right now that the fees associated with the transaction could be bigger than the amount of money the user tries to move in the first place. Well, a new version will get it fixed. That means that even smaller investors will be able to take advantage of the blockchain, not only big corporations. Theoretically, with the lower entry point, Ethereum’s significant growth is inevitable, and the price will go up as well. Of course, this all can happen under one condition – if Ethereum delivers its promises and keep up with the timeline. And if you are ready to participate, check the ETH2 staking section on Redot.

How Will Ethereum 2.0 Affect Ethereum’s Price?

There are many talks regarding how high up can the price of Ethereum go with all those updates live. Many sources predict its price to reach $4300 – $8000 in several years. However, there is one prediction that stands out. Brian Shuster, CEO and Chairman of multiple companies, believes that ETH’s price will reach $100,000 per coin! We’re unsure if his prediction will come true, but one thing for sure – all the agencies agree that the price of Ethereum will definitely go up.

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Ethereum 2.0 - Global Adoption Perspective
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There are many talks regarding how high up can the price of Ethereum go with all those updates live.
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