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Top Crypto News: Will Ethereum Dethrone Bitcoin’s Position as the Most Prominent Crypto?

Eth Merge

Key Takeaways:

What is Ethereum?

Ethereum is a decentralized blockchain specifically designed to be scalable & secure, supporting smart contracts which are an essential tool to build dApps. The largest crypto asset after Bitcoin, Ethereum was created by Vitalik Buterin along with Joe Lubin, founder of ConsenSys. 

The platform currently works on a Proof-of-Work(PoW) Consensus mechanism where-in the Ethereum-miners, mine new ETH and add it to the existing chain. Hence consuming more time and power in validating a block and adding it to the chain, similar to that of Bitcoin, currently. 

However, after the upcoming Merge, Ethereum will be the first chain in the crypto space to undergo a complex transition from Proof of Work to a Proof-of-Stake(PoS) mechanism. The platform is backed by its native token Ether(ETH) which is the second largest crypto as per the market capitalization, next to Bitcoin.  

Upcoming Ethereum Merge

The Ethereum Merge which has been making rounds for more than 6 years now, is very closer to getting accomplished. The journey began much before in December 2020, with the launch of Beacon Chain amid Phase 0 of ETH 2.0. Later several Testnets, upgrades and updates were rolled out. 

In the next 20 days, the Ethereum Mainnet is set to be merged with the Beacon Chain. Hence the name ‘Ethereum Merge’. 

Beacon Chain is a secured Proof of Stake consensus algorithm that began functioning on December 01, 2020. Since its inception, it has been running parallel to the Ethereum Mainnet but hasn’t been processing any transactions. 

The final Testnet, Goreli went live a couple of weeks ago and has not reported any major technical setbacks as of now. Hence paving way for the Mainnet Merger on September 19, 2022. 

The Ethereum Network after the Merge is expected to be more scalable and will be able to process 100,000 transactions per second. However, the Merger is just the beginning of the protocol’s development phase which will be followed by The Surge, the Verge, the Purge & the Splurge

Ethereum 2.0 vs Bitcoin

Bitcoin in recent times has been heavily criticized for being not green crypto as the mining process consumes huge energy hazardous to the environment. However, Ethereum was also sailing in the same boat, but the upcoming event is set to rise the second-largest crypto a set ahead, or may even dethrone Bitcoin in the coming days. 

Bitcoin Ethereum 2.0
Working on the same PoW consuming huge energy Work on PoS mechanism, being more environmentally friendly
Transactions to be processed is around 3 to 7 in 10 minutes The transactions per second is expected to rise to 100,000 from around 25
Bitcoin’s total supply is limited and hence cannot be fully a deflationary asset The Ethereum platform after the transition may drop the issuance of the new tokens by 90%. Moreover, the ETP 1559 upgrade could continue to burn ETH , aiming to make the asset deflationary
Bitcoin will continue to be a Digital Gold But Ethereum will have a larger adoption based on a DeFi economy

Will ETH overtake Bitcoin After the Merge?

Source: Tradingview

While Bitcoin continues to work on its native chain, the newly improved Ethereum Chain may eventually outperform the star crypto in the coming days. 

Additional Read: Ethereum Price Prediction Weekly

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