Aug 30, 2021, 9:47 am 0
Ethereum is by far the most popular blockchain for DeFi, gaming, and NFT projects. About 59% of the decentralized applications are based on Ethereum. However, it is plagued with sky-high gas fees and slow transaction processing. A transaction on the Ethereum blockchain currently takes between 30 seconds and 16 minutes.
The upcoming Ethereum 2.0 appears to be the panacea that would resolve all these issues. Until that happens, the competing blockchains have an open window to attract developers and users looking for alternatives to Ethereum.
As DeFi and NFTs gained traction over the last year, they exposed the limitations of Ethereum. The network has been struggling to deal with the influx of new users. Ethereum has become unsustainable for small investors and traders. The fees make no sense if your transaction sizes. The average gas price on Ethereum is 58 GWEI compared to just 6.1 GWEI on the Binance Smart Chain.
Ethereum 2.0: How Long Do We Have To Wait?
The community is eagerly waiting for the ETH 2.0 aka Serenity release. The upcoming upgrade would make it more secure, scalable, and sustainable. It is switching from the Proof of Work (PoW) to Proof of Stake (PoS) consensus mechanism, which would reduce energy consumption by more than 99% and increase the transaction speed from the current 15 transactions per second to about 100,000 TPS.
The Ethereum 2.0 transition is happening in three distinct phases. The first phase – the Beacon Chain – has been live since December 2020. It laid the groundwork for future upgrades. In the second phase, dubbed The Merge, the Ethereum network will switch to the Beacon Chain as its consensus mechanism. There is no specific date for this, but it’s likely to happen towards the end of 2021. It will enable staking on the Ethereum network, putting an end to the energy-intensive mining. SOURCE Amid The Ethereum 2.0 Delay, Competitors Spoiling Dapp Developers For Choice – ValueWalk