Ethereum is moving towards a proof-of-stake system that will make the blockchain more scalable and faster.
For some time now, the crypto community has awaited the launch of Ethereum 2.0. The new system is touted as the ultimate proof-of-stake blockchain that will take Ethereum to the next level and kill the competition.
During the recent EthCC (Ethereum Community Conference) held in Paris, France, Ethereum founder Vitalik Buterin said,
“Ethereum can go up to being 55% complete after the ‘merge.’ We’re getting close, which is really amazing.”
Buterin went on to explain that besides the initial stage, the new merge will occur in four stages, namely “surge, verge, purge, and splurge.”
Increased Transaction Speed
Basically, this shift to proof-of-stake and increased scalability is aimed at making Ethereum more decentralized. Currently, the Ethereum blockchain processes transactions at around 12-15 TPS (transactions per second). The new ETH 2.0 proof-of-stake system is expected to scale this up to around 100,000 TPS. That’s a huge jump that could make Ethereum the ultimate go-to chain for dApp developers and other DeFi protocols.
“At the end of this roadmap, Ethereum will be a much more scalable system. By the end, Ethereum will be able to process 100,000 transactions per second.”
Will It Lower Transaction Fees
However, while the new system will be faster and more scalable, it’s unlikely to solve the issue of high transaction fees immediately. This is because network demand is likely to increase as efficiency increases. That’s not to say that the transaction fee will forever be high on the Ethereum blockchain. As a matter of fact, this issue is marked to be solved later after the establishment of ETH 2.0.
ETH Surges Before Merge
News of the coming merge is already affecting the ETH market. The coin has gained by over 30% over the last few days. At press time, ETH is trading at around $1,577, with a 5.9% gain on the daily and a 32% spike over the last seven days.