American entrepreneur Mark Cuban praised Ethereum as the most upside investment for beginners. Mark Cuban also shared his viewpoints towards meme-inspired Dogecoin and leading currency Bitcoin.
Bitcoin, according to Shark Tank star, is likely digital gold due to its limited supply while Dogecoin has a unique value growth, rather than a creation for fun.
Despite challenges in scalability and transaction fees, it’s hard to disregard its potentials, especially when the second-largest cryptocurrency is moving to Proof-of-Stake, a more efficient and environment-friendly solution.
Mark Cuban Recommends Ethereum
Action on Ethereum-powered platforms has significantly increased due to the NFT craze and DeFi development. But Ethereum is far from perfect at the moment.
The popularity of the Ethereum-focused projects caused considerable congestion on the Ether network, resulting in a sharp drop in transaction speeds and pushing fees to a higher level.
Many virtual currency investors emphasize that Dogecoin is just a joke and that the increase in the price of this virtual currency is no different from a bubbling trend that can pop any time.
A Changing Market
The world’s second-largest digital currency Ethereum is overshadowing its bigger competitor, Bitcoin. It has risen sharply in 2021, and many see it as a better investment than Bitcoin.
However, scalability is one of the Ethereum network’s most important concerns right now.
The network employs a proof-of-work protocol, similar to Bitcoin. This means that miners using specialized computers will have to compete with complicated algorithms in order to validate transactions.
The PoW mechanism above prompted criticism of both Bitcoin and Ethereum from those concerned about the massive amount of power needed by the systems of the two virtual currencies.
Ethereum, on the other hand, is undergoing a massive upgrade known as Ethereum 2.0. The number of changes are large, and will see a new era for Ethereum come when the upgrade is complete.
The Ethereum network will be converted to a Proof-of-Stake mechanism as a result of this upgrade. To process new transactions, this architecture relies on “stakeholders,” who already own the Ethereum digital assets.
According to cryptocurrency investors, the upgrade will allow the Ethereum network to scale, process more transactions at faster speeds, and enable apps with millions of users.
How Close Are We To ETH Proof-of-Stake?
Consensys’ Lead Product Owner Ben Edington recently updated the latest progress towards the Proof-of-Stake. These notes came shortly after the Merge Workshop took place last week with the participation of the Ethereum development team.
As noted by Ben Edgington, the most remarkable point of the rendezvous is the successful transition to Proof-of-Stake. Multiple clients of the development network are now able to execute transitions with the Proof-of-Stake.
Altair’s upcoming upgrade is another major highlight, expected to make a big step forward in the transition to Proof-of-Stake blockchain technology. The fork is scheduled to take place on October 27
As we get closer to the eventual transition to proof-of-stake, it’s vital to consider what will change and what will remain the same as a result of the upgrade.
Mining tokens requires a lot of energy and effort to complete. With the coming PoS, holders only need basic types of computers to stake your coins. ALso, the energy used will be far lower, which is appealing to many investors.
It will reduce the burden and obstacles when joining the system, as well as the monopoly possibility. In addition, the PoS will bring scalability, which has been proven in other projects and increase privacy.
However, according to Ben Edington, immediate impacts on gas fees are unlikely to happen, which means the transition cost and speed remain no different prior to the transition. User experience will also remain the same after the upgrade.
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