Rohan Mathawan
Bitcoin and ethereum are two diversified aspects of the cryptocurrency industry as ethereum is a blockchain system, whereas bitcoin is a whole digitalized coinage having ample robust technologies. Bitcoin and ethereum are equipped with similar technologies, such as proof of work and mining mechanisms, making these complexes similar. Bitcoin has become the most valuable digitized currency due to market capitalization, institutional involvement, and bitcoin Maximalism.
Bitcoin was formed to make a system of transactions without the involvement of centric parties and statutory bodies. However, ethereum was meant to develop a decentralized financial system. Therefore, Ethereum is not a currency, but the token led by the ethereum network is named ether which is correspondingly equipped with a gigantic value.
Ethereum is equipped with ample technical complications, which were witnessed by the cryptocurrency industry in recent months. However, there are authentic and robust websites like bitql, which can help you avail profitable results in your bitcoin expedition. To fix these technical bumps, the organization of ethereum is working on a new flanged model of ethereum named ethereum 2.0. Still, the utmost concern of the query of crypto enthusiasts is whether ethereum 2.0 will be potential enough to take over bitcoin or not.
Reasons to form Ethereum 2.0
Ethereum is one of the most innovative digitized adaptations of the blockchain or public distributed ledger. Regardless of the fact, there are some technical bumps in the network of ethereum as it utilizes some outdated technologies in contrast to the new flanged altcoins. You might be wondering that bitcoin utilizes more outdated technologies in contrast to bitcoin, then why bitcoin does not confront any technical bumps.
The supply of ethereum is unlimited, so there are multiple transactions occurring in the network of ethereum. On the other hand, the supply of bitcoin is finite as only 21 million bitcoin units can be produced. All the more, ethereum transactions are a bit choppy and not smooth as there is an exceeding extent of chaos in the ethereum network due to the infinite supply.
These technical bumps have disrupted the experience of making transactions in the ethereum network. In order to mitigate these technical complications, the foundation of ethereum is working on a new flanged model of ethereum. Here are some of the features of the new ethereum model; let’s have a glance.
Scalability
You might be familiar with the fact that the ethereum network failed nearly half a million transactions in the midst of April as the network of ethereum was not potential enough to process that amount of transactions.
In order to embrace the potential of ethereum infrastructure for processing an enormous amount of transactions, ethereum 2.0 will be equipped with an exceeding extent of scalability. The Ethereum network is able to handle 24 transactions in a single second. However, the upgraded model of ethereum will be able to carry almost 10000 transactions in a single second.
Fragmentation of Work!
Fragmentation of work will be the most blazing feature of the ethereum 2.0 network as the entire peer-to-peer network will not be assigned with a singular task. There will be a fragmentation of work as the task amongst peer-to-peer networks will be divided into groups. In a nutshell, sharing of tasks will take place in the upcoming model of ethereum.
Proof of Stakes
Proof of Stakes is correspondingly the most potential character of the ethereum upcoming model as ethereum and bitcoin both are complexed on a proof of work mechanism. Proof of work mechanism is referred to as a significant drawback to both of these networks.
Proof of Work or POW allows every explicit miner to participate in the network of ethereum; all the more, every miner has to compete with other miners to avail the block reward at the very first instance. However, proof of stakes will assign random miners to perform mining progression, which will prohibit other miners from participating in the progression. In a nutshell, proof of stakes will allow only a set of miners to verify a transaction.
Will It Take Over Bitcoin?
No, ethereum 2.0 might be equipped with robust technologies, but it cannot possibly take over bitcoin as the market cap, and trading volume of bitcoin is just double of the ethereum, all the more it is expected to grow more in the upcoming year.