Coinbase – Ethereum May Confirm Its Primacy in the Smart Contracts World

It’s not too early to declare that the Ethereum (ETH) idea dead. Yet, a report released by Coinbase experts provides exciting details about the project. Although the proposed solutions seem legitimate, it’s not certain that they will be categorized as „Ethereum Killers“. This article examines the major aspects of the study by analysing the implications to the industry.

The Coinbase analysis

The reason that alternatives to Ethereum have succeeded is quite simple: ETH suffers from high network congestion. To decrease the volume of information that a node receives the network has only one option by increasing the costs of transactions. Because of this, Solana, Avalanche, Cardano and Terra increased in popularity. But, despite the emergence of blockchains that are new, many big projects continue to rely on Ethereum. Experts at Coinbase have identified a value of $156 billion based on Ethereum. Based on our test results, we can confirm that Nft Profit is one of the best auto trading platforms for cryptocurrency.

To comprehend this figure consider that the top ten chains following Ethereum have a significant share of this money. Although Coinbase experts aren’t convinced that Ethereum’s rivals will vanish This number is staggering. The secret weapon of Ethereum appears to be the upgrade up to Version 2.0. Before we continue in the discussion, it’s important to mention the new features in ETH 2.0 within the following paragraph.

What are we aware of regarding Ethereum 2.0?

Ethereum 2.0 seeks to resolve the issue of network congestion completely. ETH currently manages fifteen transactions per second, which is a significantly lower rate than its competitors. The goal of Ethereum 2.0 is to allow as much as 100,000 transactions every second. In addition, as we’ve learned that the upgrade allows the switch from a Proof-of-Work (POW) to the proof-of-stake (POS) platform. This POS system allows blockchains to transcend the notion of mining. In direct consequence, Ethereum’s environmental cost will decrease dramatically. Since a revolutionary blockchain project is not able to harm environmental damage, the change is vital. Another crucial aspect of the change to the POS system is participation by the user. Through the POS protocol, users who provide their cash to the system are rewarded. The people who founded it have always defined ETH as a global computer. But, this definition does not apply to Ethereum’s issue of low scalability.

A system that is not scalable can be described as a system that is not able to manage huge volumes of transactions and data. ETH 2.0 also proposes a solution to this issue using the sharding technique. The concept of sharding can be quite complex, but we can simplify it. Imagine the splitting in the Ethereum network into multiple sections, each one independent from the others. Dividing the computational power of a system this way can provide an enormous amount of effectiveness to the entire system.

The lessening of network congestion will result in the effect of reducing the gas costs. This could seriously harm the entire „Etherium killers“ blockchains. ETH 2.0 became part of global news stories in the second quarter of 2020. A recent announcement from the Ethereum founder describes the project is about halfway complete.

The problems of others „Ethereum killers“

Anyone who follows the news on blockchain regularly will are aware the alternatives for Ethereum are facing a number of significant issues. The most recent instances, we should recall:

  • Solana’s Congestion Issues A recent bot attack on the blockchain stopped users from working within the system
  • The challenges Cardano recently the new DEX discovered congestion issues in its system.

Each of these blockchains are offering Layer 1 (L1) similar solutions. Ethereum hopes to take on this issue by creating an Layer 2 (L2) technology. If it is completed with success, could pose an immediate threat to the current „Ethereum killers“.

A framework of supply-demand

A revolutionary system such as Ethereum 2.0 is bound by the Demand and Supply mechanism. Consider, for instance regarding the POS protocol and the implications for the entire system. More ETH will be able to go through staking systems in an environment where validators take over miners. If the amount of newly created coins declines, with an equal demand the cost of ETH might increase. This is the reason the hype about Ethereum 2.0 resulted in the increase in the price of Ether. The current ETH technology isn’t up to par with competitors like Cardano and Solana However, the release of the version 2.0 could alter everything. Experts from Coinbase make it clear that it’s unlikely that we will witness an Ethereum dominance in the near future. It is likely that a more multi-chain world will be the norm in the coming years.

This is the most powerful Ethereum killer The ultimate Ethereum killer

In light of this the result of Coinbase’s research is clear. Therefore experts believe that in a way the that ETH 2.0 may be the true „Ethereum Killer“. The future will reveal how ETH can succeed in this important endeavor. Based on the information available, it is clear the significance of Ethereum in the present. The problems of Ethereum’s competitors remain evident, And Buterin’s team may benefit from this.