With a market capitalization of $345 billion, Ethereum is the second largest public cryptocurrency and accounts for almost 20% of the entire industry. The platform’s developers are working to maintain this dominant position through an upgrade called The Merge, which could make blockchain mining more eco-friendly and sustainable.
As you probably already know, Ethereum has lagged behind newer blockchains. Read also: This Bad News for Ethereum Explains Its Recent Loss of Momentum – What Could Trigger Another Rise?. Take, for example, Solana, which can handle 50,000 transactions per second, while Ethereum only handles 15.
This disparity has a lot to do with Ethereum’s proof-of-work (POW) block validation mechanism, in which miners solve computational problems to verify transactions. This process is cumbersome and consumes real-world resources. An update aims to fix these issues.
According to its developers, the main Ethereum blockchain will be combined with a parallel network called the beacon chain and will move to a full proof-of-stake (PoS) system in which miners verify transactions using existing coins instead of solve puzzles. This change could result in a 99.95% reduction in total Ethereum power consumption and pave the way for further improvements to improve speed and scalability.
It’s not yet known when The Merge will go live, but the developers say it could happen a few months after June.
You want a crypto-currency with real-world use? Look no further than Ripple. Despite the current legal uncertainty, this finance-focused blockchain’s well-defined niche and impressive technical capabilities position it for long-term success in the competitive cryptocurrency industry.
While virtually any cryptocurrency can store and transmit value, Ripple takes it a step further by optimizing its design to excel in this use case. Transactions are fast and cheap – they are 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-level payment solution called RippleNet, designed to help large corporations move money across borders using Ripple’s native token. , XRP, as well as other traditional currencies. See the article: EU, New Zealand: cryptocurrencies “could” be a financial asset for travel visas. So far, the protocol can boast a few high-profile partnerships, such as Spanish multinational bank Santander and global payments giant American Express.
Ripple’s real usefulness has caught the attention of US regulators, who question whether its developers broke securities law when they launched the blockchain. Nobody knows how this issue will evolve, but investors should remember that the developer of Ripple is a separate entity from the XRP tokens you buy or sell on exchanges.
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