The first fork of Ethereum 2.0, Altair, is set to go live at the end of the month, just in time for Halloween. It’s the first step toward creating developers and code for ‘Integrate,’ the moment at which the Ethereum blockchain proof-of-work will be tested for interoperability with Ethereum 2.0.
Ethereum’s energy consumption is predicted to drop by 99.9% as a result of the shift. While this is good news for Ethereum and its native Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalization, it is bad news for Solana, Cardano, Avalanche, and other cryptocurrencies.
These players are known as ‘Ethereum Killers,’ since they promise to be able to accomplish everything Ethereum can, but better. That means it’s cheaper and faster in the crypto world. That will no longer be the case once Ethereum 2.0 is signed in, obscuring their competitive advantage.
Ethereum was the first cryptocurrency to introduce smart contracts, which are automated agreements that are activated when certain terms and circumstances are met.
At market price, Ethereum’s conventional token, Ether (ETH), is the world’s second-largest cryptocurrency. This indicates that it is just the second most popular and widely used cryptocurrency in the world. Overall, it enjoys the first shipment edge.
Ethereum has already achieved two of the three features of the blockchain ‘trilemma’ – distribution, distribution, and security – but tensions remain high. Simply said, the larger the blockchain’s user base, the more expensive it becomes to buy and sell anything.
Cardano, Solana, Avalanche, and others stated that they were using PoS to solve the problem. However, what will separate the other blockchains if Ethereum adopts PoS as well?
Without PoS as a competitive edge over Ethereum, it’s unlikely that many developers will flock to their blockchains – another area where Ethereum has a significant advantage. Thousands of people are working on Ethereum. The majority of the others have only a few hundred.
Because they will all be on the same level by 2022, the question of whether there is enough space for everyone to share remains unanswered.