Ethereum dethrones Bitcoin to become the reigning cryptocurrency?

The buzz surrounding the release of the latest Ethereum (ETH) Blockchain software update, Ethereum Merge, appears to be fading at the moment. While Ethereum prices rose about 50% in late July, when developers revealed that September 19, 2022 was the tentative release date for Ethereum Merge, prices have been contained in the last few days.

As of August 3, 2022, Ethereum was trading at $ 1,609.44 at 8:00 am IST, down 0.04%, according to data from Coinmarketcap.

Although several enthusiasts are now raising doubts about the effectiveness of the merger, some believe the new update could lead Ethereum, the second-largest cryptocurrency by market capitalization, to place massive competition against market leader Bitcoin (BTC).

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What is fusion?

The current Ethereum mainnet will soon merge with Beacon Chain’s proof-of-stake system, according to information on the Ethereum website. This will mark the end of the proof of work for Ethereum.

“The merger is the biggest upgrade in Ethereum history. Numerous tests and bug bounties have been undertaken to ensure a safe transition to proof-of-stake, ”the website states.

Recent concerns

Despite the enthusiasm, there are now concerns in some sections about the merger.

“There are a lot of potential risks with ETH Merge,” tweeted Evgeny Gaevoy, CEO of Wintermute. “Just because people have been working on it for years doesn’t mean it will work perfectly.”

The expected advantage of Ethereum over Bitcoin.

Ethereum, by default, has an advantage over Bitcoin.

Edge of the blockchain: The Ethereum blockchain is fundamentally different from the Bitcoin (BTC) blockchain, in that Ethereum has made it possible to build and execute the implementation of smart contracts and decentralized applications (dApps) without fraud, control or interference from third parties.

The most significant difference is the blocking time. The ETH Blockchain can validate a transaction in seconds compared to the minutes taken by the Bitcoin Blockchain.

Currently, both Blockchains use the proof-of-work system to create a block and validate a transaction, but soon (possibly from September 19, 2022) the Ethereum mainnet will merge with the proof-of-work system. The Beacon chain was created on December 1, 2020. In this Blockchain, Proof of Stake validators will take full responsibility for processing the validity of transactions and proposing new blocks.

Environmental Impact Edge: The merger is expected to reduce Ethereum’s power consumption by around 95.95%. This will also mark ETH as an eco-friendly Blockchain. Currently, an ETH transaction produces 105.98 kg of CO2 and Ethereum’s annual carbon footprint is 47.43 Mt CO2 according to Digiconomist (https://digiconomist.net/ethereum-energy-consumption).

Offer board: At the end of the BTC roadmap, there will be no more Bitcoin for mining. Currently 19 million BTC has been mined and only two million remain, which means that Bitcoin could become a scarce commodity in the future. On the other hand, there is no limit to the number of ETHs that can be mined over time. Recently, Vitallik pointed out that “eventually, Ethereum will be able to process 100,000 transactions per second”.

Will ETH Overtake Bitcoin?

This has been on the minds of almost every cryptocurrency enthusiast ever since news of the merger began to circulate. Now, according to some industry experts, it could very well happen, at least, in the medium term.

Vikram Subburaj, CEO of Giottos Crypto Platform, says: “There is a strong likelihood that Ethereum (ETH) will become the largest cryptocurrency in the medium term, with the merger as a key catalyst. The ecosystem must deliver on the other promises in the chart. march to continue his ascent.

He adds, “ETH has shown relative strength against Bitcoin (BTC) over the past 2-3 weeks, raising hopes among ETH maximalists of an imminent” reversal. “The term” reversal, “coined in 2017, indicates when ETH’s market capitalization is likely to exceed BTC, making it the largest cryptocurrency. It should be noted that the ETH / BTC ratio must exceed 0.15 for the reversal to occur (approximately 120% growth from the current rate) . As BTC tends to outperform ETH towards the end of the year, we expect BTC to regain strength before the fourth quarter of 2022. Taking a sports analogy, ETH and BTC are like Virat Kohli and Rohit Sharma. Both have their own fan base. and that rivalry, as a whole, is good for the crypto ecosystem.

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