What is Happening on Ethereum?
Ethereum 2.0 is coming out of the horizon. Can they solve scalability and gas fee issues?
Ethereum 2.0 was an improvement proposal to solve issues on Ethereum. These issues include scalability and gas fees. When they struck, most applications resorted to other platforms for scaling solutions and to save from gas fees. Here are the details on what happens on Ethereum.
How these issues struck?
When Ethereum was launched at the market, it was a much-needed platform to build applications on the blockchain. However, its design included a gas fee that goes towards all the miners as an incentive. As a result, miners raised the gas fees and when the value of Ethereum soared, so does the costs. It has resulted in many platforms getting away from Ethereum or choosing scalability solutions.
What about the other problem?
Scalability was an issue due to gas fees and the design of the network. Gas limits were not an issue as most applications were small. But over time, giant applications were needed to be built to maintain the structure of most applications. So, gas limits per smart contract would exceed the limit and many developers would resort to other platforms. As a result, alternative platforms prospered and they would host robust ecosystems to make them work.
How Ethereum 2.0 aims to solve the problem?
Ethereum plans to implement Proof of Stake (PoS) to solve scalability and fee issues in the network. Their plan would include people having a certain amount of ethers to stake in the network. As a result, users would be incentivized to be involved in the network. That would further scale up the network. As there’s no possibility of mining for ethers, miners wouldn’t have the ability to mine and get rewards from anybody. So, that would solve most of the problems as planned.
According to you, what is happening on Ethereum? Can Ethereum 2.0 could solve these issues? Share your thoughts in the comments section below.