What is the Future Fate of Ethereum
Ethereum is in a very interesting stage right now. Having gone through numerous battles like the DAO attack and the subsequent hardfork, it is finally at a stage where it can truly expand and become something that is completely unique. The article below discusses the four stages of the evolution of Ethereum as a currency to get from its current proof of work state to proof of stake.
There are a number of advantages for the currency in this approach:
- Lowers the overall energy and monetary cost: The world’s Bitcoin miners spend around $50,000 per hour on electricity. That’s $1.2 million per day, $36 million per month and ~$450 million per year! Just put your head around those numbers and the amount of power being wasted. By using “Proof-of-stake” you are the making the whole process completely virtual and cutting off all these costs.
- No ASIC advantage: Since the whole process will be virtual, it wouldn’t depend on who has the better equipment or ASICs (application-specific integrated circuit).
- Makes 51% attack harder: 51% attack happens when a group of miners gain more than 50% of the world’s hashing power. Using proof of stake negates this attack.
- Malicious-free validators: Any validator who has their funds locked up in the blockchain would make sure that they are not adding any wrong or malicious blocks to the chain because that would mean their entire stake invested would be taken away from them.
- Block creation: Makes the creation of newer blocks and the entire process faster.
- Scalability: Makes the blockchain scalable by introducing the concept of “sharding”
With all these changes and updates, the future definitely looks bright. What Ethereum ultimately wants to do is to “disappear”. This means that it wants to be omnipresent and run on everything without people even knowing they are currently working on something based on Ethereum. There is still a long way to go before they can even attempt to achieve that, but the future definitely looks bright.