Bitcoin is the first successful internet money based on peer-to-peer technology; whereby no central bank or authority is involved in the transaction and production of the Bitcoin currency. It was created by an anonymous individual/group under the name, Satoshi Nakamoto. The source code is available publicly as an open source project, anybody can look at it and be part of the developmental process.
Ethereum is a smart contract platform that enables developers to build tokens and decentralized applications (dapps). ETH is the native currency for the Ethereum platform and also works as the transaction fees to miners on the Ethereum network. Ethereum is the pioneer for blockchain based smart contracts.
In view of the arrival of Ethereum a decentralized open-source blockchain with smart contracts functionality. 2.0, the upgrades that are taking place on the main network and the deflationary nature with which it currently operates, researchers agree that Ethereum could prove much more attractive for safeguarding value than Bitcoin.
A new study carried out by researchers at the University of University of Sydney and Macquarie University points out thatEthereum, the second largest market an area or arena, online or offline, in which commercial dealings are conducted. cap digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currency, could have the potential to replace Bitcoin as the leading digital store of value.
Ethereum A better alternative for safeguarding value?
The study conducted by researchers from the aforementioned study houses alleges that, as cryptocurrencies are making their way into the traditional sector and enjoy greater adoption, investors see in these the possibility of storing value in the face of the financial uncertainty that is currently experienced. While cryptocurrenciesBitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. historically considered as the best asset reserve for these purposes, the research points out that the properties that make up the network ofEthereum could be more in line with this principle.
In the abstract abstract is something that exists in thought as an idea. of the research, the authors propose:
“However, recent innovations in the Ethereum Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. network a network refers to all nodes in the operation of a blockchain at any given moment in time. have shown that it is possible for cryptocurrencies to become deflationary, specifically through the destruction of transaction fees. With up to half of blockchain networks destroying more Ethereum than is created, the notion that Bitcoin offers the best inflationary hedge among cryptocurrencies is increasingly under threat.”
In this sense, here the study refers to the implementation of theEIP-1559 a few months ago, which introduced a system of burning destroying a certain number of digital coins to reduce their issue. This method is used to fight inflation and increase the value of cryptocurrency. All token burning transactions are recorded in the blockchain as a transaction. Therefore, anyone can verify that the coins were destroyed. commissions precisely to limit the amount ofETH which goes to the market, although this at the time was the subject of fierce debate because it undermined the conditions of the mining a process where blocks are added to a blockchain, verifying transactions. It is also the process through which new bitcoin or some altcoins are created. community.
According to data published by the websiteWatchtheburn.comsince theEIP-1559 a total of 1,090,879ETH at the time of going to press, while on the other hand, a global total equivalent to 1,599,199ETH. By doing a basic subtraction, this results in a positive balance equivalent to 508,320none cifra que constituye la cantidad de nuevo Ether the form of payment used in the operation of the distribution application platform, Ethereum. which corresponds to 30% of the totalETH originally generated.
The most important thing to note about this is that, the burning of ETH has already exceeded several times the amount ofEther generated, which results in negative balances that gradually limit the overall total ofEthereum in circulation. The fact that there are fewer and fewer units should technically increase the value of the digital currency currency is a medium of exchange that defines value. amid growing demand in the market.
It is worth noting that in recent monthsEthereum registered new all-time highs, strongly approaching USD $4,900 per unit at a time of high demand among investors and users of the network.
Expectations withEthereum 2.0
On the other hand, expectations are also growing with respect toEthereum 2.0, the expected upgrade to the network that will implement major operational changes, this to further encourage both commercial and technological adoption of what itsBlockchain puede ofrecer.
Among the most important operational changes are the migration ofProof of Work (PoW) a Proof of Stake (PoS)The network will require less power consumption and participants will be able to assist in the processing of the blocks through an escrow a financial instrument where assets or cash are held by a third party while a buyer and a seller complete a deal. system.(Staking) and thereby derive passive gains.
However, the biggest bet is on technology, since the changes would bring with them a greater scalability for the network, which implies a greater volume how much cryptocurrency has been traded over a set period, such as the past 24 hours. of operations in short a trading technique in which a trader borrows an asset in order to sell it, with the expectation that the price will continue to decline. In the event that the price does decline, the short seller will then buy the asset at this lower price in order to return it to the lender of the asset, making the difference in profit. periods of time, as well as a significant reduction in commissions for native operations.
More solutions on the way
But in the meantimeEthereum 2.0, many enthusiasts and investors also have their eyes on the solutions currently available on the market, including second-layer solutions (Layer 2) and theRollups, that would help to further streamline the flow of operations in the core network.
Además de esto, recientemente el desarrollador principal y cofundador de Ethereum, Vitalik Buterin, presented a new proposal to solve the problems associated with high transaction costs, better known as theEIP-4488, which would also implement an increase in the size of the network blocks.
In relation to the latter, inTwitter One researcher summarizes the benefits associated with this proposal as follows:
“Technical TLDR: EIP-4488 reduces the cost of call data from 16 to 3 GAS a term used on the Ethereum platform that refers to a unit of measuring the computational effort of conducting transactions or smart contracts, or launch DApps in the Ethereum network. It is the “fuel” of the Ethereum network. *see Gas Limit and Gas Price. per byte, with a limit on call data per block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain. to mitigate security the term securities refers to a fungible and tradable financial instrument that carries a type of monetary value. risks.
TLDR for the end user: accumulation overheads decrease, which reduces L2 tariffs.
Technical TLDR: EIP-4488 reduces the calldata cost from 16 to 3 gas per byte, with a cap on calldata per block to mitigate security risks.
End-user TLDR: rollup cost overhead decreases, thus lowering L2 fees.
– proto.eth ???? ???? (@protolambda) December 1, 2021
Ethereum space opens up
Whatever the reason,Ethereum is one of the coins with the best growth in this last period, remaining in second place in the ranking of cryptocurrencies with the largest market capitalization, with more than USD $532.5 billion currently in circulation.
The digital currency is currently trading at around USD $4,500 as of press time, capitalizing on a slight drop of 2.7% in the last 24 hours.
- Ethereum community starts testing “The Merge”, the next big step towards ETH 2.0
- Ethereum and Solana Prices Rise as Shiba Inu Falls on Dec. 1
- Vitalik Buterin presents EIP-4488 proposal to solve high gas tariffs in Ethereum
Version by Angel Di Matteo /DiarioBitcoin