Ethereum needs scalability to retain market share: report

Please fol­low and like us:
Pin Share

Bank of Amer­i­ca (BofA) has said Ethereum needs improve­ments in scal­a­bil­i­ty in order to retain its mar­ket share from new­er blockchains such as Binance Smart Chain, Tron, Avalanche and Solana, accord­ing to a Coin­Desk report

See relat­ed arti­cle: Ethereum will soon turn 7 — and its upcom­ing ‘Merge’ will be well worth the wait

Fast facts

  • The multi­na­tion­al bank added that fea­tures like greater scal­a­bil­i­ty, low­er trans­ac­tion fees, and proof-of-stake (POS) con­sen­sus mech­a­nisms will “like­ly be key as the Web3 ecosys­tem of decen­tral­ized appli­ca­tions emerges,” Coin­Desk said. 
  • The Ethereum blockchain’s switch to POS from a proof-of-work (PoW) con­sen­sus mech­a­nism — pro­vi­sion­al­ly expect­ed in mid-Sep­tem­ber — is like­ly to reduce Ether token’s ener­gy con­sump­tion by more than 99%.
  • Peo­ple tend to crit­i­cize Ethereum as bad because it doesn’t allow for enough scal­a­bil­i­ty, Igneus Ter­renus, head of com­mu­ni­ca­tions at cryp­to exchange Bybit, told Forkast. Just because there is scal­a­bil­i­ty doesn’t mean that a chain is per­fect — there can be all the scal­a­bil­i­ty, but if no one comes to use it, then there’s no point, he added.
  • Ethereum co-founder Vita­lik Buterin said last month that Ethereum will be about 55% com­plete after “the Merge,” when it will be a much more scal­able sys­tem, able to process 100,000 trans­ac­tions per second.

See relat­ed arti­cle: Can Ethereum’s proof-of-stake tran­si­tion save the planet?

Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *