While we all follow the rise in the price of Bitcoin, all eyes are on the second largest digital currency in the world, and we are talking about Ethereum, which is expected to surpass $ 1394 one day, which is the previous record.
Currently, the price of Ethereum has risen to nearly $ 600, which means that it compensated for an important part of the losses, especially since the currency fell to $ 91 before it began to rise again.
The digital currency has risen about 350% since the start of the year, last week its price briefly exceeding $ 600 for the first time since June 2018 before falling sharply, and touching that level again this week.
Now, Ethereum investors are watching for the long-awaited upgrade to its core network known as Ethereum 2.0, which they say will make it faster and safer.
Solve one of Ethereum's biggest problems
The main problem in Block Qin Alaatriom current time in scalability, in 2017, for example , led a popular game based on Ethereum called CryptoKitties to network congestion strongly, resulting in circulation and trade in a significant slowdown.
But Ethereum 2.0 supporters say the planned upgrade could allow thousands of more transactions every second, and at the same time investors believe it could also lead to increased adoption and adoption of the currency as well as a higher price for the digital currency.
Proof of share
To understand the transformation taking place on Ethereum, it is important to first know a little bit about blockchain technology, which is the digital ledger originally used to record Bitcoin transactions and provides the basis for most of the major cryptocurrencies.
The Ethereum blockchain is currently running on a "proof of work" model. So-called "miners" compete with purpose-built computers to solve complex mathematical puzzles to validate transactions. Whoever wins this race is awarded the Ethereum coin.
Yesterday, Tuesday, the blockchain began moving to a "proof of stake" model, and instead of miners the network will rely on "stakeholders" who already own the digital currency to process new transactions.
In order to validate a transaction on the new network, the partner must deposit 32 units of Ethereum, worth about $ 19,600 at current rates, into a crypto wallet using what is known as a smart contract.These are blockchain contracts that are executed automatically using code.
Participants in validating transactions such as crypto miners are then given some winnings. This 'storage' process effectively gives cryptocurrency investors the ability to realize gains from their holdings after a certain period of time.
Decentralized Finance and Financial Applications
A big topic in the Ethereum community now is Decentralized Finance, or DeFi, which aims to replicate traditional financial products such as loans without intermediaries like banks.
Some crypto preachers say Ethereum's ability to support apps means it could become the architecture for the next generation of the decentralized internet.
In essence, the Ethereum ecosystem has made the decision to grow a little more and become a little more secure so that people, organizations, and developers can continue to build more apps and financial products based on them.
The new upgrade provides a lot of opportunities for decentralized financing and financial services that will spread over the Internet in the coming period.
Invest in Ethereum
For now, what is happening is the introduction of a parallel Ethereum blockchain known as Beacon and this will be used to test the proof of the new stake system before the full migration to Ethereum 2.0.
Meanwhile, more and more ether is being hidden for a restricted, multi-year "shutdown" period by unit holders of this currency seeking to validate transactions on the new network.
This can choke the supply of the currency which could increase the price of the currency if demand starts to outpace supply.
Experts also see it leading to innovation in the DeFi space as investors look to gain some liquidity by borrowing against their Ethereum holdings.
Another big development that the upgrade will offer is the so-called "segmentation". This effectively divides the network into lots of parallel chains that can handle transactions to speed up the network.
In the future, crypto experts say Ethereum 2.0 should help the Ethereum network operate at scale, process lots of transactions at a faster pace and support applications with millions of users.
Within five to 10 years, these decentralized platforms will operate and the impacts will be significant on this digital currency, which could also compete for about $ 100 thousand and more in the coming years.
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