Ethereum News Today – Headlines for October 29

  • Ethereum has switched from “the world computer” to more of “world bank”
  • Ethereum big move to Ethereum 2.0 might put it at the forefront of staking
  • Ethereum issuance to reduce enormously after upgrade

Ethereum News Today – A few years ago, Ethereum was dubbed “the world computer.” However, the blockchain project has not been able to live up to that supercilious ambition. It has been a huge demand for such a young project, but Ethereum seems to be growing into more of a “world bank” via its decentralized finance (DeFi) and next consensus mechanism.

Ethereum Might Be at the Forefront of Staking after the Big Switch Next Year

Ethereum’s big switch to Ethereum 2.0 is just a few months away. Recently, Binance Research carried out a deep look at the Proof of Stake consensus algorithm of Ethereum 2.0. Staking would herald a significant shift in the digital currency ecosystem, and Ethereum would be leading the way. Environmental concerns due to extreme power consumption might be the end of Proof of Work. It is mathematically brilliant but extremely demanding and inefficient for both energy supply and physical hardware.

Ethereum (ETH) Price Today – ETH / USD

#NamePrice24H %
2
ethereum
Ethereum(ETH)
$175.04
-0.74%

Proof of Stake provides a strategy of holding funds to support blockchain operations via an incentive mechanism that is equivalent to block rewards. Several other blockchains have shifted to Proof of Stake consensus mechanism; Ethereum is not the only platform to do that. However, Ethereum is by far the largest and it would have the most significant impact.

Ethereum Issuance Rate Would Reduce After the Implementation of Proof of Stake in Ethereum 2.0

According to the monetary policy of Ethereum, the issuance rate would reduce significantly after the implementation of Proof of Stake in Ethereum 2.0. The new upgrade would also introduce a sliding scale between the total amount of Ethereum at stake and the yearly interest stakers earn. Once Serenity has been fully implemented on the Mainnet, the issuance rate is expected to level out.

A lot is at stake with the upgrade of the network to Ethereum 2.0. If the incentive to stake is low, the network would not get the minimum number of validators it needs to keep the shards and blockchain running. On the other hand, if the incentive is too much, the network would be overpaying for security, and it would inflate at a rate that is not healthy for its economics.

To become a validator on the Ethereum network, one must have a minimum of 32 Ether, which is currently worth less than $6k. At the moment, there are over 109,000 wallets that want to stake, and this is a healthy number.

Ethereum is gradually moving from being “the world computer” to more of a “world bank.” Ethereum would have a financial-based future considering the developments around it at the moment.

Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.

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