The Impact of Ethereum 2.0 On The Market

2023-03-20, 06:51

Ethereum 2.0 is a next-generation platform that solves some of the problems faced by the current platform. As mining energy consumption and trading demand increase, Ethereum faces rising gas prices and scalability issues. To address these issues, the Ethereum development team spent several years working on upgrades.

Last year, Ethereum conducted a large-scale upgrade called the “Merge.” In April of this year, the “Shanghai” block is planned to start upgrading, as well as the sharding upgrade before 2024.

Given this, Ethereum can eliminate the energy consumption required for mining, implement sharding to shard trading data, and increase the trading speed from 15 transactions per second to a theoretical 100,000 transactions. In addition, it will “burn” tokens and introduce a deflationary mechanism to improve the value and utility of tokens.

Based on the upgrades before 2024, Ethereum will become a powerful platform with the advantages of high-speed processing and mining environments. There is no doubt that this will have a significant impact on the market.

Reference:
https://Ethereum.org/ja/upgrades/sharding/#relationship-between-upgrades

Author: Peperon

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