While Ethereum is often considered to be one of the most promising crypto currencies in the market, there are still some technical issues to deal with. In order to improve the crypto-currency’s adoption rate, issues such as scalability, ease of use, speed and fungibility are still to be addressed.
For analysts such as Jeff Reed, the Ethereum network will almost certainly become more important than Bitcoin’s in the future, as the Ethereum ecosystem is better equipped to overcome the challenges mentioned.
The migration from Ethereum 1.0 to Ethereum 2.0 could greatly improve the network and boost Ether’s price next year
The creation of new blocks is at the core of every blockchain network. Rewarding miners, or “stakers” to validate transactions and create new blocks is the way a network can create new coins. These rewards are incentives to help people stay motivated in securing the network and avoiding any network attacks.
On the current Ethereum network, new Ether coins received by miners who create a new block follow a Proof-of-work (PoW) protocol. To be involved in the mining process, members put their computational power to work in solving complex mathematical problems. These rewards help them finance their operational costs and turn them a profit (depending on the price of Ether).
Next year, the Ethereum network will likely rely on a Proof-of-stake (PoS) protocol. This means that to be able to validate block transactions, a member will have to first own coins in order to stack them. The more Ether coins a given member has, the more staking power he will have. Regarding potential attacks, this consensus algorithm is considered to be less risky than the Proof-of-Work protocol.
Ethereum 2.0 has mainly been designed to improve the scalability of the Ethereum network. Going from a proof-of-work to a proof-of-stake model to validate transactions and issue new blocks should improve the network’s scalability and security, while bringing down costs and improve transaction speed.
After being postponed several times, the date of the next hard fork of the Ethereum network (called Istanbul) is finally confirmed and scheduled for December 4
This implies that all the technical upgrades and improvements of Ethereum 2.0 should be introduced next year. Many analysts and investors expect this event to have an impact of Ethereum’s adoption, which should be seen in Ether’s price. There is a hope that Ethereum will trigger a 2020 altcoin boom, propelling Ether’s price to new highs.
There are many possible ways of making money with Ethereum crypto. It all depends on your knowledge of the crypto world and how much time you have to dedicate to it. Among the most rewarding and exciting ways you can get involved are 1) trading Ether through CFDs, 2) buying Ether through an exchange to store them on a wallet, as well as 3) mining (soon staking) Ethereum.
The launch of a public main network for this updated version of the Ethereum’s ecosystem must follow a multi-stage process
‘The way that Eth 2.0 will be rolled out is that it starts off being separated Eth 2.0 chain. Then there’s a link between the two chains and then eventually the kind of existing Ethereum chain gets kind of fully merged into the Eth 2.0 chain’ explained Ethereum’s founder – Vitalik Buterin to Angie Lau from Forkast News.
‘But it’s definitely this multi-stage process. And the reason we did this is to be safer and more conservative. Like you don’t want to move the entire existing ecosystem onto the fancy new thing before you’ve proved the fancy new thing can work. And the fancy new thing here includes proof of stake. So it’s not just a technology change, it’s also an economics change’, he added.