Blockchain and cryptocurrency is the latest trend!

Nowadays, most people have started using cryptocurrencies and blockchain platforms. There are many industries and sectors which function on blockchain-based apps.

Blockchain and crypto go hand in hand. In order to use decentralized apps, you need to use cryptocurrencies.

Most people either use Bitcoin or Ethereum. These are the two most popular cryptocurrencies.

Even though Bitcoin is rising in popularity, Ethereum is not far behind. In the last few years, Ethereum has shown great potential.

It is the only cryptocurrency that is promising enough to take over Bitcoin in the near future.

Developers are constantly making changes in the Ethereum platform to improve it. They are planning to introduce Ethereum 2.0 and EIP 1559 in the near future.

Experts predict that with the latest launch, Ethereum 2.0 will overtake Bitcoin in the long run. It will become a more attractive asset than BTC.

What is Ethereum?

Many people confuse Ethereum for a cryptocurrency, but it is actually a blockchain network. It is the world’s second-largest cryptocurrency as well as a cryptocurrency platform. It is different from all the other cryptocurrencies, including Bitcoin, as it is an open-source self-computing platform.

Ether is the actual name of the cryptocurrency on this platform. Even though Bitcoin is the most popular cryptocurrency when it comes to a blockchain platform, nothing can beat Ethereum.

It has the second-highest market capitalization in the crypto world. It was developed in the year 2014 with the help of crowdfunding. However, the network went live in 2015. This platform and currency are used for many technologies like smart contracts, decentralized finance, decentralized apps, etc.

What is Ethereum 2.0?

Now that you know what exactly Ethereum is let’s learn about Ethereum 2.0. As Ethereum is an open-source network, the developers are currently planning and making various changes in the network.

Ethereum 2.0 is nothing but a major upgrade to the existing platform. It is also known as Eth2. The main reason behind the change is to make Ethereum a better platform and cryptocurrency.

With these changes, the developers are going to increase the transaction output. As of now, 15 transactions are completed in one second on this platform. They are going to increase it to tens of thousands of transactions.

The developers are going to use sharding technology by which they will split the load into multiple blockchains. They are using proof-of-stake for the blockchain, which will help them to make the platform safer. Nobody will be able to tamper with the network as it will become an expensive deal.

All these things will make Ethereum a safer and faster platform than Bitcoin in the near future. Ethereum 2.0 launch is already in progress. They are going to launch it in three phases.

  • Phase 0: It was launched in December 2020. In this phase, they have established the Beacon Chain. It is a proof-of-stake blockchain. It will be the main and central consensus for the network.
  • Phase 1: It is still in progress. Here, they will create shard chains. All the chains will be connected to Beacon Chain.
  • Phase 2: In this stage, the execution will take place. The current Ethereum 1.0 chain will become a shard chain. It is the actual transformation process from Ethereum 1.0 to Ethereum 2.0 network.

Will Ethereum Overtake Bitcoin with ETH 2.0?

Ethereum vs Bitcoin has always been a hot topic in the crypto market. With BTC value rising day by day, the developers of Ethereum are taking several actions to take advantage of cryptocurrency adoption.

Many experts are predicting that with the launch of Ethereum 2.0, this coin will leave BTC behind. While it is a far-fetched dream, there surely is a possibility for ETH to beat BTC in the coming future. Here are some of the factors which clearly shows that ETH has the potential to overtake BTC.

Proof-of-Stake:

It is a mechanism in the blockchain network. Here, instead of coin miners, there are validators. Instead of mining the coins, they will propose new blocks to validate the transaction. Apart from that, they have to provide storage, bandwidth as well as computing power as well. In return, they will get payouts in ETH. Each validator will get a deposit of 32 ETH. It will be locked so that they cannot use it. If there is any malpractice or fraud, it will be cancelled. This mechanism will help to avoid any malpractices on the ETH platform.

EIP 1559:

It stands for Ethereum Improvement Protocol. It is a burning mechanism. It will result in a decrease in the supply of ETH in the market. This change will help to decrease the gas fees. When it happens, the amount of ETH which is burned will surpass the supply of ETH. This will make ETH a deflationary asset.

Stronger Monetary Policy:

BTC has a stronger monetary policy than ETH, which makes it a better crypto asset. However, with the latest changes, Ethereum will have a way stronger monetary policy. It will change the currency from inflationary to deflationary by limiting the supply. As there will be less ETH in the market, it will increase the value proportion of the coin.

Secure and Faster Network:

With the use of Proof-of-stake and sharding technology, Ethereum will become a secure and faster network. PoS will make the platform more secure as there will be fewer malpractices. Similar sharding technology will make it a faster network. It will become more secure and faster than Bitcoin.

Ethereum GDP:

As per experts, the Ethereum project is more attractive than Bitcoin. This platform is building its own economy. The GDP of this coin is at par with some of the biggest countries in the world.

Rise of DeFi and DApps:

Nowadays, most of the corporation are going after DeFi and DApps. As these technologies are built using the Ethereum platform, it is boosting the currency. The rise in these two sectors will take Ethereum to a whole new level in the future.

Institutional Investors:

Institutional investors are moving towards cryptocurrency ever since its amazing performance during the pandemic. While most of them are investing in BTC, there are many who have their eyes set on ETH. There are many investors and companies who have invested millions of dollars in ETH in the last year.

Market Capitalization:

As per market capitalization, ETH is far behind BTC. Bitcoin has reached a market cap of $1 trillion while ETH is near $200 billion. However, ETH is far ahead of BTC in terms of transaction fees, transaction count and node count. It shows that ETH has the potential to beat BTC.

Ethereum Price Action:

ETH current price value is $1,800. It is less than BTC, which is around $58,000. However, BTC was running at a loss in the last week, whereas ETH showed a gain. There is 0.15% growth in this coin.

All these factors clearly show that Ethereum 2.0 has the potential to beat BTC in the near future. Ethereum will become a more attractive asset with the official launch of Ethereum 2.0. However, it is a long way coming as Bitcoin is showing no signs of slowing down.