Ethereum Proposal – All set to bring changes to Crypto World
Crypto players said with the current updates, maybe Ethereum stands a chance to outperform Bitcoins. Ethereum 2.0’s latest upgrade could make it outperform Bitcoins. Known as Ethereum Improvement Proposal (EIP)-1559, which went live on Thursday, is touted to be the most significant update since the launch of the crypto currency.
The upgrade will not only help reduce cost of transaction fees involved on Ethereum network but introduce several other fundamental changes to how Ethereum is perceived. Industry players said with the current updates, Ether stands a chance to outperform Bitcoins.
The new update, called ‘London Hard Fork’, on the Ethereum blockchain includes five Ethereum improvement proposals (EIPs). The exact date of its release could not be ascertained.
This upgrade will most certainly enhance the Ethereum blockchain, and the way in which the asset is priced, as supplies will become limited. It will increase the transaction speed per second, leading to less congestion and significantly reduced fees.
On the contrary, miners will be affected, as it will burn a portion of the fees generated on the blockchain, which will in turn reduce their revenue and may prompt some of them to go for possible migration.
The upgrade to Ethereum 2.0 will certainly make it more environmentally friendly than the current leader, Bitcoin. Also, the use of block in decentralised finance and its applications will hopefully support Ether’s price movements in the years to come.
Bitcoin is seen as a store of value just like Gold. However, Ethereum has a lot more use cases and adoption led by DeFi, NFT and other Dapps being built on top of Ethereum. This adoption essentially means more demand for Ethereum which will eventually lead Ethereum to outperform Bitcoin. Ethereum Network also called EVM (Ethereum Virtual Machine) is like cloud computing using the Blockchain, and can be compared to Unix servers powering Facebook, Google and other platforms. This is the potential of where Ethereum can go and what the future tech businesses built on Ethereum technology.