Ethereum: Bitcoin is future proof?
The debate on Ethereum has been the future proof for years has been controversial among cryptocurrency enthusiasts and experts. Thanks to the decentralized nature, program and a huge intelligent contract ecosystem, many believe that Ethereum can become a real alternative to Bitcoins and other cryptocurrencies. However, as with any technology, there are important fears of Ethereum long -term perspectives.
Hash Endrum function
In the heart of cryptocurrency safety there is a mixing function used by each network. In Bitcoin, the Hash SHA-256 function has been designed so that it is impossible to computate, so that a large number of users work on a scale that would prevent it from cracking. However, as mentioned, the process of processing has increased in the exponently over the years.
problem with more processing power
Thanks to stronger computers and faster networks, it is increasingly difficult to keep up with the required calculation requirements required to maintain the security of bitcoins. As the number of users increases, energy consumption is required to make transactions and confirm new blocks. This not only tightens electricity, but also creates a situation in which miners may be less incentive to participate, which can lead to higher rates.
Ethereum solution
In response to these challenges, Ethereum introduced its own work proof (POW) in 2015, which allowed the network to climb more efficiently. However, this approach is still susceptible to attacks and exploits, especially if a sufficiently powerful team of miners can use weaknesses in the system.
Case Ethereum
One of the key benefits of Ethereum is its program possibility. Unlike Bitcoin, which is limited to performing specific and well -defined transactions, the Ethereum intelligent contract platform allows programmers to create a custom code that can affect the network and other applications. This flexibility has allowed a wide range of use, from decentralized financial loan platforms (DEFI) to virtual worlds.
The challenge of scalability
Ethereum scalability is another area in which it faces serious challenges. Thanks to the current architecture, Ethereum can only support about 15 transactions per second (TPS). As the application’s demand increases, this number must increase significantly to take into account new cases of use.
To solve these fears, developers examine alternative solutions such as:
- Fragmentation : A technique that consists in dividing the network into smaller and easier to manage elements called fragments. Each fragment can work independently and process transactions at a faster pace.
- Waterproof evidence (POS) : Algorithm of the consensus, which requires the Walidates to “put” their coins instead of extracting. This approach has been shown to be less intense in energy and potentially more scalable.
Application
Although Ethereum faces serious challenges related to maintaining security and scalability, the cryptocurrency ecosystem has shown extraordinary resistance to adversity. Because developers still exceed the limits of what is possible in the case of intelligent contracts and decentralized applications (DAPP), it will be important that Ethereum adapts and evolves in response.
Ultimately, if Bitcoin remains future evidence, it depends on how to climb well and adapt to changing market conditions. If Ethereum continues to introduce innovations and improves its infrastructure, it has a great opportunity to maintain its position as the main cryptocurrency platform.
Sources:
- “Solution of the Ethereum fragmentation” Cindesk (2020)
- “The future of Bitcoin and Ethereum” with DECRYPT (2019)
- “Ethereum 2.0: New Era of Calviation” Cindesk (2020)