The issues with Ethereum are finally being addressed. From scalability to infinite supply, everything will be fixed with the changes in the network. One of the co-founders of the cryptocurreny talked about the layer-1 and layer-2 scaling system that is a major problem for them. But with the addition of sharding to the network, all these scalability issues will mostly be addressed.
Ethereum 2.0
The new technology used in the platform will enable 100x scaling in the next few months. With the use of technology, there will definitely be a lot of scepticism. But Buterin thinks there will be a lot of applications to the system. Sharding will be a layer-2 integration and will improve the entire blockchain network. As Ethereum works on a network where every node processes every transaction going through it, the network can only be fast as a node.
But with sharding, the network is divided into small parts that makes it much faster and scalable. Unlike the previous network of Ethereum, this time around, there will be independent transaction history, and the processes required for each transaction will also reduce drastically. And once the layer -1 sharding solution and layer-2 rollup solution both are implemented, a 1000x scalability will also be possible. Another recent update also focuses on solving the infinite supply issue. Now every transaction on the network will destroy some token, reducing the annual increase in the supply of coins from 5% to just 1%
As all cryptocurrencies’ prices rise, Ether is also very close to reaching its all-time high once again. At present, it is trading at around $1750 after falling from the extreme resistance at $1870-$1880. What are your thoughts on the recent implementation of sharding and rollups in the Ethereum network? Lets us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.
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