Ethereum 2.0

Ethereum Network upgrade drives price higher to $4,400

Ethereum is the second-largest cryptocurrency in the world, second only to Bitcoin. It recently announced a network upgrade to its network. Bitcoin has the ultimate monopoly among all the crypto coins or tokens. The only coin that people think can ever take on Bitcoin is Ethereum. And the reason behind that is not just because of its high valuations. It is because of the new technology that Ethereum proposed to bring on its network.Ethereum Network Upgrade

The biggest challenge with acknowledging crypto has been environmental concerns. Bitcoin, the largest crypto, works on a Proof-Of-Work mechanism. Which requires the miners to use loads of energy through computers and several hardware equipments to verify a transaction. And thus leading to degradation of the environment and nature. Then came the Ethereum network which proposed to solve this problem by bringing in a better technology called Proof-Of-Stake. Here, miners don’t need to prove the effort they have done in validating transactions, to receive the block rewards. Instead, the Proof-Of-Stake mechanism requires a person to hold the majority stake in the coin, to be eligible to validate the transaction. And then the person can receive the network fees as his reward.

What do the valuations say about Ethereum?

As of 31st October, the valuation of Ethereum stands at $501 Billion, and the price of one Ether Token is $4,271. Ethereum as mentioned above is the second largest crypto in the world. And the 3rd most valued crypto is Binance Coin with a valuation of $87.5 Billion. And then there are 4 more coins below that with over $50+ Billion Valuation. So, one can say that Bitcoin is very highly valued in the industry. As the gap between Ethereum and the next most valued crypto Binance Coin is more than 5 times.

Ethereum

But at the same time, if one looks at the valuation of Bitcoin, which currently stands at a whopping $1.15 Trillion. Then the price of Ethereum may look like nothing, as it is valued at less than half of the value of Bitcoin. And an investor could predict a huge growth potential when comparing both these coins.

So the final decision rests with the investor on how he wishes to look at Ethereum. But the pace at which the Ethereum community is developing, an investor may get a little more inclined to go with the second scenario.

Also, If and when Ethereum completes its transition to the PoS mechanism, it’ll be huge, and way more efficient, and user-friendly than Bitcoin. And analysts rightly predict that Ethereum could surpass Bitcoin in valuations. All of Bitcoin’s valuations come from its monopoly as a payment aggregator. But that may change soon with Ethreum dominating the much-needed changes in the industry.

What Is The Ethereum Network Upgrade All About?

Altair is a major upgrade in Ethereum 2.0 Network. It was much awaited by the public and the investors. As it is the largest crypto in the world to be transitioning towards the PoS mechanism. ALTAIR Upgrade in EthereumEthereum founders had promised the PoS network on their blockchain in the very beginning itself. And that announcement has led to the immense success that Ethereum has achieved up till now. This network update is considered as the first move of transition towards the PoS mechanism. The upgrade involves an update in Ethereum’s Beacon Chain Mechanism, which is considered the heart of Ethereum’s transition towards the PoS mechanism from the PoW.

The transition process is supposed to be completed by the year 2022. And on the 27th of October, Ethereum made its first move towards that transition successfully with the network upgrade. Which also led to a whopping 10% rally in ETH coin the same day. Driving its price higher to form a new lifetime high of $4,460.47.

Other than the changes in its payment mechanism, Ethereum is also a pro-active player in the Defi and NFTs space. Which has seen very high demand in the past quarter. Ethereum network is very broad, and not just limited to its crypto coin Ether.

Ethereum 2.0

With all of this going on Ethereum is bound to break the records that Bitcoin has set in the industry. Unless Bitcoin starts forming up technology or an upgrade of its own. It will be amazing to see how both these currencies perform in the coming year. But if you are an investor, having trouble in deciding which crypto to invest among these two. I recommend you click on this link.

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