If you thought Ethereum was dead because the market for ICOs or Initial Coin Offerings are almost dead in the water by now, think again.
The recent introduction of what Ethereum 2.0 can be, might surprise you. From complicated concepts such as sharding, to Proof of Stake (POS) mining, to more advanced smart contract features, Ethereum could once again be a beacon of hope. Already, diehard fans are calling for the “flippening”, where Ethereum replaces Bitcoin, in the near future.
No better smart contract protocols out there
Love it or hate it, Ethereum’s blockchain has always been the gold standard. Yes, it might be slow at times, making it expensive and unsuitable for many functions – such as payments, it has never failed its users, even as thousands upon thousands of projects are currently riding on its blockchain. In short, it’s easy to understand, to build on, and it’s also reliable, unlike some of the competitors it has out there.
This realization alone should not put its price at “worthless” as many haters do, because who else can replace Ethereum’s smart contract capabilities, its reliability?
Okay, for the uninitiated, Ethereum 2.0’s features might be slightly confusing. How is it going to be better? For one, let’s start with the simpler one – privacy. Up till now, even Bitcoin has questionable privacy and the government can actually track your payments if they want to. Version 2.0 of Ethereum, dubbed Serenity will address these problems, and hopefully shield not only provide more data privacy, but allows it to function as a form of “private” currency as well.
Next, we move on to another concept, called “sharding”. In theory, blockchain networks require different computing setup to power various functions. However, in today’s situation – the same setup (called nodes or miners) perform the all the said functions, causing it to be slow. In order to speed up the network speed, sharding will be introduced to allow the division of “tasks” on the network, powered by different “computers” so to speak. Moving forward, it is entirely possible that Ethereum can be expanded beyond being a smart contract platform, even handling payment transactions at a low price and ultra-fast speed. Interesting, isn’t it?
Finally, Proof of Stake or POS are said to possibly Ethereum’s current POW or Proof of Work mining, where machines mine and serve the network, verifying transactions etc. It is possible they could adopt a hybrid system, but this remains to be seen. Holders of the Ethereum token can gain interests by simply holding onto the token, or by setting up a node to support the network – pretty much what DASH is doing right now, but remember that DASH acts as money only.
Some anti-Ethereum pundits are already saying that the move towards POS will only enrich the top Ethereum holders, as they will sit on gains, without doing any work. Yes, this might be true, but the new features are also features that the community need. Let’s face it – if Ethereum did not improve, people might simply move to other blockchains such as EOS.
In addition, while these additional features are indeed very interesting, there are already projects out there that have the said features. POS, privacy and sharding are nothing NEW. However, Ethereum being the “gold” standard in the industry, and adopting these features are indeed game changing. We can’t say the same for Bitcoin. So, we look forward to Ethereum 2.0, and think that this is an absolute opportunity if you are an investor. BUT, don’t take our word for it as we are not investment advisors.
Cover photo by: cctube