Ether up 4x this year, all eyes on Ethereum 2.0

2 min read | December 02, 2020 01:13 PM AEDT | By Kunal Sawhney

Ether up 4x this year, all eyes on Ethereum 2.0

Investors awaiting Ethereum 2.0

In the backdrop of the technological advancement and growth of the digital payment system, cryptocurrencies are growing fast. Investors are now looking at it as a safe option amid the current volatile market situation. The cryptocurrency market is finally emerging and seems to be getting its due credit, and even authorities are keeping a tab on the market trends. The world is softening its attitude towards the cryptocurrencies.

Amid the bullish Ethereum trend, investors are waiting for the long-pending upgrade of the underlying network. Similar to bitcoin, blockchain is the underneath technology for recording Ether transactions. Currently, Ethereum works on "proof of work" model, where miners with specially-designed systems for ether transactions try to outdo each other in solving tricky mathematical puzzles to validate transactions. The winner in this competition gets awarded the Ethereum cryptocurrencies.

Do check: What is blockchain and blockchain technology?

Transition to ‘proof of stake’ model: On Tuesday, the blockchain underlying the Ether network is set for an upgrade to the "proof of stake" model. Ether works on Ethereum blockchain, which runs smart contracts. Unlike bitcoin, the Ether acts as a fuel to allow smart contracts to run. After the upgradation, in order to validate a transaction on a new network, stakers, instead of miners, will be able to do the same. It means to begin a transaction, a staker, who already possess some Ether cryptocurrencies, will need to deposit 32 ether tokens of around USD 19,600 at the current price to crypto wallets with the use of the smart contract. The stakers, like crypto miners, will then be rewarded with Ether for validating transactions.

The upgradation is promising for Ether and projects related to it. The upgrade will increase the scalability, speed, and efficiency of the network.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.