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What Next Ethereum Could Bring In Near Future?

Ethereum is the second largest cryptocurrency by market capitalization and also in terms of making its debut in the crypto space. Ethereum even though was inspired by Bitcoin, but its network is totally different from the pioneers in terms of functionality as well as dynamically.

Instead of completely copying the Bitcoin blockchain, Ethereum focused on creating a brand and legacy of its own. While Bitcoin and its subsequent forked altcoins only focused on the financial aspect, Ethereum focused on harnessing the blockchain and Distributed Ledger technology to the fullest.

Ethereum network was the first one to introduce tokenization services, where new entrants can use the Ethereum network’s consensus to launch their tokens. Later it introduced Blockchain smart contracts which allowed for smooth contract deals backed by technology and does not require any human intervention for execution. After the smart contract era, Ethereum introduced and popularised Decentralized applications (Dapp) hosting.

Having been a trendsetter in the decentralized space, Etheruem is now focused on Ethereum 2.0, where there would be a change of consensus from Proof of Work to Proof Of Stake, and a testnet has already been launched by the implementation partner Nimbus.

The testnet launched for Ethereum 2.0 is not just a dummy project or computer simulation, but a full-fledged node which is synced with the existing nodes which can be used by selected few at the moment to help the developers refine it over time. The developers have already announced that since the testnet is only for testing purpose, it might be unstable and contain bugs.

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What Ethereum 2.0 Brings to the Table

Ethereum network has been long thinking to change the mining consensus from Proof of Work(PoW) to Proof Of Stake(PoS) since many have been demanding the change. The main reason for the change from PoW to PoS is because PoW consumes a ton of electrical energy as numerous miners try to verify transactions at the same time, and many believe that PoW does not really make any use of the input hash power apart from verifying the transactions.

Etheruem 2.0 will make use of Proof Of Stake, where instead of all miners putting in their hash power to solve a block, only the selected ones would be given the permission to mine blocks, this way there won’t be any waste of hash power and mining will still continue to be the process of transaction verification.

The miners will be selected based on their activity on the network, and trust will pay a major role in determining it. If someone has been active on the network making a certain number of genuine transactions instead of hoarding the transactions to manipulate the process.

Apart from the change in consensus Ethereum is also looking to implement sharding to the new chain, which it believes would help the network to execute a massive number of transactions while maintaining the security and decentralization aspect of it.

Ethereum network has been long plagued by exceeding block size which many beliefs would make the network painstakingly slow in future, however, the recent set of development and moves towards Ethereum 2.0 surely looks like a great initiate by the developers to make the network more scalable and faster on par with its counterparts.

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 Final Thoughts

Etheruem network might have been lagging behind as many new blockchains have evolved over time to give Ethereum a tough competition, and since most of them have arrived almost 5-7 years after the Ethereum, they don’t have to deal with problems like increased block size or scalability issues, since they don’t have a large user base or acceptance level as Ethereum.

However, the decision to move towards Ethereum 2.0 shows that the network is well aware of the problems in the long term and have decided to make important changes to the consensus to resolve them.

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