Ethereum Introduces Proof of Stake to Solve its Scaling Problem
Ethereum Introduces Proof of Stake.
The capture of mining work, Bitcoin and many others uses the same energy as Denmark. It is a costly and time-consuming process and based on users who develop traditional blockchains, are struggling.
This is because each transaction must be “dominated” by powerful computers that solve complex mathematical problems. This is a process that ensures network security, avoiding duplications and other malicious actions.
The energy inefficiency of this process is truly staggering. And that’s not all. With every transaction that requires a long confirmation process, the blockchain cannot be scaled easily as more and more users join the network. Bitcoin transactions are now unbearably slow and costly, with long delays in waiting for their turn.
Ethereum also suffers from the same issue. Vitalik Buterin, head of the Ethereum system, aims to introduce what is known as the Stake Proof this year. Upgrading to the network is known as Casper and intends to be a gaming player.
Casper could bring enormous changes to the economic model of Ethereum and hence to the price of Ether. Not only will transactions be confirmed much faster, allowing network development while saving polar stars, will also cover the total number of Ethereum available.
At present, new Ether is produced through a mining process similar to Bitcoin. With Casper, players will be rewarded with the trading fees they create. A constant quantity of Ether will not mean inflation.
With this change, will we see the fabled flippening, with Ethereum dethroning Bitcoin to become the most valuable cryptocurrency? It remains to be seen.
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