- Ethereum can handle 14 transactions per second.
- Ethereum 2.0 will switch to the proof-of-stake (PoS) model.
The price of Ethereum has increased by more than 415 percent in the last year, making it one of the most successful cryptocurrencies. Although the cryptocurrency market has grown tremendously, 2022 may be even more promising. Although the crypto market has crashed today, Ethereum is presently moving to Ethereum 2.0, which will make it quicker, cheaper to use, and more ecologically friendly.
In order to gain an advantage over the competition, Ethereum 2.0 will switch from a proof-of-work (PoW) system to a proof-of-stake (PoS) model. In a proof-of-work (PoW) system, miners use high-performance computers to verify the validity of transactions. This technique is both time-consuming and energy-intensive. Compared to Bitcoin, which employs a PoW system, Ethereum can handle 14 transactions per second.
Edge Over Bitcoin
As Ethereum’s co-founder Vitalik Buterin claims, it will be able to handle up to 100,000 transactions per second once it switches to a proof-of-stake mechanism. Since Cardano already uses a Proof of Stake (PoS) system, Ethereum will have a huge edge over Bitcoin.
This update has been made available to make scaling simpler for Ethereum’s decentralized apps. Slow transaction speeds on the Ethereum blockchain hamper the development of initiatives. Ranging from decentralized banking to non-fungible token (NFT) markets. Even more, people will access the service after the change is complete.
