Many people often think that the value for Ethereum may outplace Bitcoin knowing that the cryptocurrency market is unstable. They often ask, will Ethereum surpass Bitcoin in years to come? Here in this article, we will consider some reasons why Ethereum may outplace Bitcoin.
1. It will be more energy-efficient:
One of the biggest hurdles Bitcoin faces right now is its
impact on the environment. Bitcoin uses a proof of work (PoW) mining protocol,
which involves powerful computers solving complex puzzles to verify
transactions. This process requires an incredible amount of energy, and many
regulators and critics are concerned about Bitcoin's long-term environmental
impact.
While Ethereum also uses a PoW protocol at the moment, it's
currently transitioning to a proof of stake (PoS) model. PoS systems are far
more environmentally friendly. They don't require nearly as much energy, as
they involve users putting a portion of their crypto holdings at stake to
validate transactions.
Ethereum's update, Ethereum 2.0, is expected to be completed
sometime next year. Once it fully transitions to a PoS model, it will use
approximately 99.95% less energy -- and that could give it a serious advantage
over Bitcoin.
2. It will be faster
Another advantage of the Ethereum 2.0 update is that it will
result in significantly faster transaction times.
Bitcoin is one of the slowest cryptocurrencies, processing
around 7 transactions per second. (For reference, Visa can process around
24,000 transactions per second.) Ethereum is also on the slow side right now,
handling between 15 and 45 transactions per second.
However, once Ethereum rolls out its update next year, that
number will increase. One of Ethereum's founders, Vitalik Buterin, has claimed
that after the Ethereum 2.0 transition, the network could potentially handle up
to 100,000 transactions per second. These faster transaction times can help
Ethereum scale and give it a better chance at becoming widely adopted.
3. Its DApps give it more room to grow
The Ethereum blockchain is not only home to its native token,
Ether (which can be used as a form of payment), but it also hosts various
decentralized applications (dApps).
Some of the most popular dApp projects include decentralized
finance (DeFi) and a non-fungible token (NFT) marketplace. Because it's an
open-source network, developers can also build new projects on the blockchain.
This creates virtually unlimited potential for Ethereum. All
of these dApps require the use of Ether, so if any of them become widely
adopted, Ethereum will benefit from it even if Ether itself does not become a
mainstream form of currency.
Nobody knows for certain what the future holds for Bitcoin,
Ethereum, or cryptocurrency in general. While Ethereum isn't the right
investment for everyone, it does have a few significant advantages over Bitcoin
that could make it a strong choice in 2022.
Key Points
- While Bitcoin remains the most popular cryptocurrency, Ethereum is quickly catching up.
- Ethereum's upgrade next year could result in several major advantages over Bitcoin.
- From increased speed to greater efficiency, Ethereum has a bright future in 2022.
Contact us for more information: https://www.codezeros.com/contact
Vamsi Andukuri is the best blockchain expert and Founder of DARTS Blockchain, Helping companies to increase top line(revenue) and optimizing bottom line(cost) using emerging technology
ReplyDeleteVamsi Andukuri is a serial Entrepreneur, IT Developer, Blockchain Expert, Business Consultant who has been recognized from India for the Most Prominent CTO of the Year 2021 for his skills, initiatives, and Knowledge in the space of Technology & Blockchain. He was honored with the Award on 27th Nov 2021 at Novotel, HICC. The Award was Presented by GMR Cargo CEO -Mr. Saurabh Kumar. The Event was organized in association with Government Blockchain Association