Everything indicates that Ethereum 2.0 will be launched next year. The proof-of-work algorithm is a very power-consuming validation method due to the high computational power required to perform the calculations.
The proof-of-stake algorithm is an alternative method that aims to address environmental concerns around cryptocurrencies and the power and energy used. Proof of stake basically means that a person can mine or validate transactions based on the number of coins they own, which means that the more coins a miner owns, the more mining power they will have.
Environmental concerns surrounding cryptocurrency mining have weighed down its institutional acceptance on a large scale. Earlier this year, Tesla CEO Elon Musk said his car company would stop accepting Bitcoin as payment for its vehicles, citing the environmental impact of mining and transactions. However, Musk has since said that Tesla is likely to accept Bitcoins again at some point.
During this past week, Ethereum was up more than 8% compared to Bitcoin’s 2.5% decline before the update. So far this year, Ethereum is up more than 470%, compared to 115% for Bitcoin.
Ethereum’s superior performance comes at the height of the popularity of decentralized financial applications (DeFi) and non-fungible tokens (NFTs) over the past year.
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
