With a market capitalization of $345 billion, Ethereum is the second largest public cryptocurrency and accounts for nearly 20% of the entire industry. The platform developers are working to maintain this dominant position with an upgrade called The Merge, which could make blockchain mining more environmentally friendly and sustainable.
As you may already know, Ethereum has lagged behind the newer blockchains. Read also: This bad news for Ethereum explains its recent loss of momentum – what could trigger another rally?. Take for example Solana, which can handle 50,000 transactions per second, while Ethereum handles only 15.
This discrepancy has a lot to do with Ethereum’s Proof of Work (POW) block validation mechanism, where miners solve computational problems to verify transactions. This process is cumbersome and consumes real world resources. The update aims to fix these issues.
According to its developers, the main Ethereum blockchain will be integrated with a parallel network called the beacon chain and will migrate to a full Proof of Stake (PoS) system where miners verify transactions using existing currencies rather than solving puzzles. This change could lead to a 99.95% reduction in the overall Ethereum power consumption and pave the way for further improvements to improve speed and scalability.
It is not yet known when The Merge will go live, but the developers say it could happen a few months from June.
you would like to encryption-Currency with real world use? Look no further than Ripple. Despite the current legal uncertainty, the well-defined niche of the blockchain and this impressive technical capabilities focused on finance make it a long-term success in the competitive cryptocurrency industry.
While almost any cryptocurrency can store and transfer value, Ripple is taking it a step further by improving its design to stand out in this use case. Transactions are fast and cheap – processed in just three to five seconds at a cost of 0.0001 XRP token (each XRP is worth $0.65 when written).
Blockchain developer Ripple Labs also has an enterprise-grade payment solution called RippleNet, designed to help large companies move funds across borders using Ripple’s native token, XRP, as well as other traditional currencies. See the article: EU and New Zealand: Cryptocurrency “could” be a financial asset for travel visas. So far, the protocol can boast some high-profile partnerships, such as Spain’s multinational bank Santander and global payments giant American Express.
Ripple’s real interest has caught the attention of US regulators, who are questioning whether its developers violated securities law when they launched the blockchain. No one knows how this issue will develop, but investors should remember that the Ripple developer is a separate entity from the XRP tokens you buy or sell on exchanges.
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