Ethereum: Does it hide good surprises for us?

Ethereum: Does it hide good surprises for us | Docmedio
Ethereum is a hot topic right now. However, if you look at the technical details of this blockchain technology, it becomes apparent that Ethereum is not what many people think it is. In fact, ETH appears to be more like a wolf in sheep’s clothing than anything else. Here are some examples of why I believe this to be true.

How Ethereum Works

Ethereum is a form of digital currency Like other cryptocurrencies, ETH has been experiencing a boom over the past year and has grown to be worth more than $300 billion in value.

It works with the help of blockchain technology. This technology is a block of information that is locked by cryptography. A key feature of this blockchain is that it can be programmed to perform specific actions once a specific condition has been met.

An Ethereum contract is not going to be cheap or free

When a contract is deployed a lot of computer power is used. This means that there are costs to running the contract. The Ethereum Virtual Machine which runs the contracts will also need to be paid for by the contract owner.

In other words, you're going to have to spend money if you want a smart contract.

In many instances, you will need to pay for the cost of the contract. However, some people think that contracts are free or at least free to run. This is not true at all.

The Latest on Ethereum

Plans have been made to increase the speed and decrease the costs of Ether. Some of these plans include changing to Proof-of-Stake (PoS) system, among other things. However, the transition is proving more difficult than expected.

A new ETH update is now pushing back the date of the next difficulty bomb until June 2022. Miners are still enjoying the rewards from a Proof-of-Work system, but soon the network will change to a Proof-of-Stake system. This is where the difficulty of the bomb and the subsequent "ice age" comes in. Meanwhile, Ethereum by some metrics has become the most profitable cryptocurrency for me.

Some news about Ethereum 2.0 is that the creator of Ether, Vitalik Buterin, recently released proposals for improving scalability and privacy on Ethereum 2.0. To do this, Buterin proposes a second storage layer, which can allow for staking the use of fewer resources.

Each block is split into 100 pieces and each piece is divided into 100 different blocks. The Merkle or Verkle tree state is a root for each block. Each 2nd tier Staker randomly gets assigned to one of the buckets. A block is accepted only if at least 2/3 of the validators agree on it. __Source: Vitalik.ca

The current issue of scalability has been a major topic in the crypto space for some time. Vitalik Buterin, the founder of Ethereum, is stepping up and taking matters into his own hands. He recently proposed an idea to solve these issues with the Ethereum network. The idea involves splitting up the production and validation process. Validation can happen more efficiently since there is no need for validators to keep a complete record of the entire Blockchain.

Ethereum: Does it hide good surprises for us | Docmedio