No Number of Ethereum Killers Who are Competing Will Matter If ETH solves POW LimitationsApril 27, 2019
Following the breakdown of Bitcoin, Ethereum falls as well. It is expected that ETH will fall further down. ETH has broken past the key ascending trend-line support downwards. During the recent bearish pressure in the market, ETH managed to sustain a positive trend line; however, following the Bitcoin fall, ETH has come down from its ascending line.
Before the ETH can bounce back to a normal level, it will go further down. The existing key support is at $140. This might, however, break for a short time.
Ethereum is set to switch over to the proof-of-stake method in order to get rid of bottlenecks and the overall low transaction costs. In this process, the validators will be staking their own money when they are validating new blocks in order to get rewards out of it. This is worth a lot of money, and it is a more environmentally friendly way to approach things.
Fredrik Harryson, Ethereum CTO stated, “In a proof-of-stake system, your cost of attack is just buying tokens. You basically want it to be unreasonable that anyone would be able to buy so many tokens that they’re able to attack the network.”
When there are so many on the network, there needs to be a kind of incentivization. Validators will begin looking at the token in a different way. This is more than mining they have to be dealing with. They need to assess if it is worth the risk of investing their stakes in the mining process.
When explaining the stake, Harryson states, “There is a sliding scale of rewards which depends on how much ETH will be locked up in stake. In a system where there are very small amounts of stake locked up, you want to encourage more people to stake and lock up more ETH in order to increase the security of the chain.”
The idea of Buterin proposing staking in tokens is just a suggestion. This is not an exact happening yet. This might shake up the network altogether, and it has to be decided before the implementation of Ethereum 2.0.
While the POS is an environment-friendly way, it is worth a lot of money; the BNB is being discussed very commonly as an ETH killer.
However, CZ Binance stated, “we don’t have to diss any other coin. ETH can do much more than BNB in features. Let’s grow together.”
Once the ETH platform gets past the limitations of Proof-of-Work mining, no numbers of ETH killers might matter.