We are proud to present our first short Krypto News video, reported to you by the CEO of Crypto Future — Tomislav Matic.
In this video, Tomislav reported on prevailing and exciting topics which focus on new updates presented by Ethereum and Cardano as well as the inflation rate in the USA and its impact on the Crypto market.
Last week’s topic in the crypto market mostly focused on the updates that will happen in the Blockchain system. For this reason, the CEO of Crypto Future has chosen to talk about Ethereum and Cardano and give a brief overview of the events in the crypto world after the latest USA inflation rates announcements.
The crypto community has been buzzing about the long-awaited updates in the Ethereum arena that aim to move from proof of work to proof of stake. However, one needs to understand these concepts to discuss this topic more in-depth. Simply put, the up-to-year consensus process in the Ethereum network is proof of work. The word itself explains that it is needed to do the work to be able to confirm blocks in the Ethereum blockchain or to be able to create new blocks. This workload is very intensive and requires a lot of computing power; the topic for discussion in the past few months has been its impact on the environment. Since many companies use proof of work consensus, energy is extensively consumed, and with increasing prices, this is not seen as the most welcoming aspect of the current technological capabilities. To tackle this issue, the Ethereum team has been announcing for a long time that this process will no longer be as intensive, with a decision being made to switch from proof of work to proof of stake consensus.
The new consensus is said to be more environmentally friendly, and the Ethereum team has announced that 99.85% of the energy will be saved by utilizing proof of stake. We can compare such a transition with a trend observed in the car industry that moved from heavily relying on diesel and gasoline cars to more environmentally friendly electric vehicles.
This move is a complete change in the deployment of the consensus mechanism for Ethereum, and it has to be done carefully since it is impossible to stop the whole system and make the necessary changes.
As the network cannot be shut off, changes and upgrades must be implemented on the go and perfectly aligned with the system.
This transition is announced to be implemented in mid-September, when the Ethereum network will, on the one hand, become more sustainable. On the other hand, improved technical applications and programming techniques are expected.
Another topic of interest to the crypto community is the second major network — Cardano. While Ethereum is switching from proof of work to proof of stake, Cardano has been utilizing proof of stake consensus from day one. One could say: a considerable advantage for Cardano, but as Cardano does not have as large a community as Ethereum, they are pursuing a more scientific approach. Just last year, they enabled smart contracts and plan to implement the Vasil hard fork upgrade next week.
This upgrade should improve the impact on the environment and facilitate various projects by improving their transaction speed and volumes. The update has been announced several times, firstly in June and again in July. However, the latest information shows that the current version with minor bugs, likely to be fixed, will probably be used as the main network.
Both Ethereum and Cardano projects mentioned are of great importance for the crypto market, and it will be very exciting to see what happens in the next three to four weeks when all of the upgrades take place.
Of course, many who are in the crypto space — owners of crypto coins or potential buyers — look at the price development of these coins.
In the past few days, we have seen how dependent cryptocurrencies are on global events and economic development, and here you can observe how quickly prices move up or down based on these events. Only a few minutes after the information on the US inflation rate was published where it was announced that inflation was no longer 9.1% but moving toward 8.5% — prices of cryptocurrencies went up rapidly. Here we can see that even minor improvements in global events, such as the inflation rates, can significantly impact the crypto industry. Similarly, cryptocurrencies can plummet within minutes, which we have observed with the outbreak of war in Ukraine.
Disclaimer: With this Krypto news, we are not giving financial advice on whether to invest or not; instead, we aim to provide an overview of the crucial topics in the crypto market.
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For more information check out:
https://ethereum.org/en/upgrades/
