Ethereum is the second most popular cryptocurrency resource, which is lagging a few steps behind Bitcoin. The ETH developers are always on the move to bring upgrades and advancements to the currency to make it better than Bitcoin. People are more drawn towards Bitcoin 360 AI than Ethereum because Bitcoin set the pillar for the growth of cryptocurrency. It has gone through drastic shifts but is still many traders’ first choice. Ethereum has a long way to go if it wants to reach that level of reliance and trust.
In this article, we have mentioned why Ethereum is behind Bitcoin and how the ETH developers have found a way to overcome those problems.
Drawbacks of Ethereum
The creator of Ethereum, Vitalik Buterin, developed the software with the aim that its blockchain supports options other than finance as well. It has been successful as the Metaverse runs on non-fungible tokens that are powered by the Ethereum blockchain.
- ETH is posed as a supercomputer by the founder because the network struggles to validate more than a few hundred transactions in a limited timeframe.
- When users transact small amounts of Ethereum, they have to pay almost 100% of the value in fees.
- A platform that is built to revolutionize the cryptocurrency world, Ethereum raises some huge question marks on its technology.
Developers looked into the errors and came out with Ethereum 2.0. This version solves many issues like reducing environmental harm, transaction fees, and rapid transaction process.
Proof-of-Work to Proof-of-Stake
PoW is the original system that works for all cryptocurrencies. In this system, you will mine the coins through your high-powered mining rigs, which consist of multiple GPUs. Each cryptocurrency block has a unique 64-digit hexadecimal code. Now, your mining equipment will run cycles and algorithmic techniques to figure out that code. If you are the first to do that, you’ll earn the reward.
Now, the problem with this method is that it is a gamble. You have to rely on the efficiency and performance of your system to earn rewards. If you get an expensive state-of-the-art setup, you’ll surely win the reward. But if not, then there are low chances that you will get to receive the reward. As the competition is getting more intense, people must have mining rigs that solve the problem the fastest. If you attain the best mining rig, there will be another problem, your electricity bill. Mining rigs are power-extensive devices that suck up energy, resulting in high electricity bills with great energy exhaustion that harms the environment.
Coming towards the PoS method, here, you will become a Validator. Your job will be to stake or finalize an amount of crypto in the network. In order to become the one who locks in all the funds, you have to send a signal to the network to acquire the position. The more funds a validator stakes, the more chances for the users to earn rewards in return. Your responsibility as a Validator will be to validate transactions made on the network. Once you do that, your decision is sent to the blockchain, which helps you earn rewards from bitcoin hack.
The proof-of-stake system is more accessible to regular users as they can participate in the trading platform without spending thousands on expensive mining rigs. In addition, the PoS system is less power intensive, which means less harm to the environment. The developers claim that the new system reduces the harmful impact of carbon footprint by 99.9%, which seems unreal, but it is better than the previous system, that is for sure.
PoS is definitely better than PoW. Users can also benefit from the rapid transactions and wouldn’t have to pay hefty amounts of fees thanks to Ethereum 2.0. If the developers of ETH carry on and find solutions to the user’s problems, then Ethereum might have a chance to kick Bitcoin down and earn first place. But we still don’t know if Ethereum will continue the upgrades and advancements to beat its competitors. So far, it seems it will, but time will tell how far ETH can go.
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