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Tuesday, September 27, 2022

The Merge May Help Ethereum Take Over Bitcoin

With the impending switch to a proof-of-stake consensus mechanism, Ethereum’s monetary system will change, possibly making Ethereum more valuable than Bitcoin.

 Vivek Raman, an Ethereum researcher, is confident that ETH’s impending switch to the proof-of-stake (PoS) mechanism would allow it to overtake Bitcoin (BTC) as the most well-known cryptocurrency. According to him, ETH does have what it takes to overtake Bitcoin in the market. He shared this news exclusively on Cointelegraph.

Ethereum On The Verge Of Taking Over Bitcoin:

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In September, Ethereum will undergo The Merge. It is a long-awaited update that will help the crypto to complete the switch from a proof-of-work (PoW) to a proof-of-stake mechanism. The Merge would also alter Ethereum’s monetary system, making the project more eco-friendly and cutting the total supply of ETH by 90%. Researchers are hopeful that this Merge will make ETH more powerful than bitcoin.

According to Raman, ETH will continue to have “a broader adoption area” as the foundation of the decentralized finance (DeFi) industry. In contrast, Bitcoin will continue to serve as a form of digital gold.

The major obstacle stopping ETH from scaling is still its high transaction costs, which the Merge will not lower. According to Raman, this is not a problem because ETH will rely on layer-2 scaling methods to sustain the majority of users’ activities.

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Raman has also shared that the users have to learn the consequences of their activities. They should know that their every activity on the market should always be on L2. Then these L2s will use the crypto (ETH here) as the base L1 for any security and settlement and also for decentralization of the coin.

In an exclusive interview with the Cointelegraph, the crypto researcher has shared these with the readers.

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