In the highly volatile market of the crypto industry, it is obvious that one crypto asset might get ahead of others. It is a never-ending race in which at one point some may fall behind and at the other point, leave other crypto assets behind. It is therefore important to keep track of it all if those who are associated with it want to be on the safe side and place their bets in the right cryptocurrency. One such event occurred more recently when Solana performed extremely well and left behind Ethereum based on its performance.
A closer look at the transactions in Solana
With time Solana has gained huge popularity and many transactions are now being made in the Solana blockchain. In recent times, these transactions have been steadily rising on the Solana blockchain, and this led to almost as many as 40 million daily transactions. In comparison to this, Ethereum failed to get as many transactions and could manage to make only one million transactions. These transactions were done specifically in April, May, and June.
What is the reason behind such performance?
Needless to say, the popularity of a crypto coin depends majorly upon the consensus of the general public. The more crypto manages to gather favor, the more its value increases. However, it is not always the case. It does not happen always that a crypto coin that is at the peak of popularity gets used more often of which Solana is an example. Even though there have been various ups and downs in its path, and despite being less popular than Ethereum, it managed to show its exemplary performance in the current season.
Solana’s magnificent rise to the top
The best part about the rise that has been witnessed quite recently is that it has been steady throughout. This rise was analyzed by various experts and was even tracked based on daily non-vote transactions. There have been various factors that have been responsible for the rise Solana has been enjoying. There have been various decentralized apps such as Switchboard, that have contributed majorly to its spike.
Later when the vote transaction was taken into account, it showed that Solana managed to father almost as many as 100 to 200 million transactions in a day. This spike gave rise to the number of wallets being used all over the world.
Other factors responsible for the growth
There have been various other factors that too are responsible for the rise in Solana transactions. It is also a result of the funding that it began receiving right from mid-2020. Solana managed to attract so much funding as it was supposed to extend its support to other platforms such as Gamefi, Defi, and the nonfungible token ecosystem. No matter what the organization is, the Solana market is at its peak and is expected to continue at its peak as well.
There have been various such news doing rounds in the market about the emergence of a Helium blockchain network, that is supposed to transition into Solana. This shift has been waited and is highly recommended because it would help with various other issues that Solana has been facing. Primarily it would help with facilitating its operations and improve the scalability. The community is well set on fixing the number of problems that the crypto is facing and to come up with a renewed or reformed system for the betterment of all.
The higher authorities at Solana have even promised that the transition is supposed to bring about a plethora of changes.
According to Vitalik Buterin, the co-founder of the Ethereum network, the much-anticipated software update of the Ethereum blockchain, which is referred to in the cryptocurrency industry as the Merge, is now expected to take place around September 13 to September 15.
The Merge signifies a movement in the manner that Ether tokens are generated and payments are verified, away from mining blocks utilizing challenging computational puzzles following the proof-of-work technique and toward the proof-of-stake approach. The proof-of-work method required miners to solve increasingly difficult problems to get new blocks. Holders of Ether may sign up to verify transactions on Ethereum using the POS mechanism, which is based on stashes of locked up tokens in their possession.
Buterin said that the proof-of-work version of Ethereum only has a roughly “fixed amount” of mining slots after the last test stage of the Merge known as Goerli earlier this week. Goerli was known as the name of the test stage. Because of this, engineers now have a better idea of when the formal network update will likely get underway.
An earlier projection suggested that the date would fall between September 15 and September 20. Next week, there will be another meeting with the engineers working on Ethereum to iron out any last-minute kinks in the Merge. During this call, a specific date will be decided upon and hammered out.
The Bellatrix hard fork
On the Ethereum blockchain, the long-awaited update to Ethereum 2.0 is set to get underway. Ethereum 2.0 refers to the method by which the cryptocurrency Ethereum (ETH) will transition from operating on a proof-of-work (PoW) basis to operating on a proof-of-stake (PoS) basis through a hard fork, also known as a separation process. Even though the Ethereum Foundation does not make use of the phrase “Ethereum 2.0,” the word is often used in the industry to make things easier to understand.
A Bellatrix upgrade for ETH is slated for today, the day before the final merge. At that time, the Ethereum Epoch value on the proof-of-stake chain is expected to increase to 144,896. This will occur before the final merge. According to the Ethereum Foundation, one epoch is the amount of time that must pass to mine 30,000 blocks.
The most recent upgrade to Bellatrix is required for “the Merge” to be carried out without a hitch. This upgrade is the last one that will take place before the Paris Upgrade, which will take place after “the Merge.” It brings together the proof-of-stake chain and the current execution layer (current proof-of-work).
Mining on the Ethereum Blockchain will be rendered obsolete as a result of the Paris Upgrade, which will also herald the transition from a proof-of-work validation system to a proof-of-stake system design.
An outline of the most recent changes to Ethereum
In the same way that Bitcoin was constructed, the Ethereum network was built using the proof-of-work (PoW) method. This suggests that mining, a process that uses a substantial amount of energy, is necessary for the production of Ethereum (ETH) coins.
To make the transition to a proof-of-stake (PoS) paradigm, however, various measures were made in preparation for the introduction of Ethereum 2.0 in 2020. The purpose of this project is to improve the speed, efficiency, and scalability of the Ethereum network to facilitate the execution of a greater number of transactions in parallel.
What will happen after The Merge?
At the beginning of this year, Ethereum’s original developer, Vitalik Buterin, assigned a development progress rating of 50% to the project. In addition to this appraisal, he included a list of the many stages, such as merging, surge, verge, and others, that Ethereum must go through to reach 100%.
The update to Bellatrix is slated to take place today. As part of this process, the Beacon Chain will be integrated with the Ethereum mainnet, and the consensus method will be converted entirely from proof-of-work to proof-of-stake.
The zk-rollups layer 2 scaling solution will need to be implemented as the next stage of the surge. To aggregate and carry out several transactions all at once, a technique known as rollup makes use of an Ethereum sidechain.
A system consists of different factors upon which it builds itself and upon which it survives. These are the pillars resting upon which it moves towards success or failure, therefore cannot do without them. Likewise in the crypto industry, investors play an important role, which is quite evident and needs no mention. Therefore, whatever goes on in the system also affects those who are a part of it. Each action or change that is taken or made, cannot be taken into account excluding these important members of the system. One such instance is the Ethereum merge that has taken place most recently. This article endeavors to shed light on how this merger has offered a new place for several institutional investors.
What is the role and importance of investors?
There are several factors upon which the crypto industry, which in itself is quite volatile depends for its smooth operation. These factors or agencies include pension funds, insurance companies, institutional investors, etc. They have all collectively tried to help as well as trying to help solve the volatility issue that crypto is facing since its emergence.
Themegamergerst has occurred recently and has been referred to as one of the historic moments since the birth of Ethereum. Therefore, being such an important step it is needless to say, that it would bring certain changes for each and everyone involved in it.
Let’s take a look at the merge
In the merge, a more than amazing transformation took place which left each and everyone associated with and those who witnessed it, in awe of it. Rye blockchain network shed down its previous proof-of-work status and adopted the new proof-of-stake mechanism. It has been widely appreciated and has even been compared to a courageous act and almost impossible task such as changing the jet engines while in the air. The best part is it functioned without any interference or glitch of any sort.
What are the other changes that followed?
Various other changes followed the merge. For example, Ethereum in its new form has endeavored to cut down on electricity consumption by a lot. It has almost lowered its energy consumption by an estimated 99.95%, which is a remarkable step taken by the crypto asset. This has also, for the moment, diverted those who were eagerly waiting to impose restrictions on the blockchain network due to environmental concerns.
Even though the merger has come with various benefits and is even estimated to give rise to more, there is still one concern that has not yet been solved. The issue of Ethereum’s scalability remains. It has not yet taken any efficient step in solving its lack of scalability permanently. Even though it is magnificent, it has not yet been completely adopted by institutional investors. There are still various facets that need more attention and time to be resolved or reformed.
The merge, as mentioned above is a much-awaited step in the evolution of Ethereum and people have high expectations from it. However, some changes are required. The authorities at Ethereum have stated that there is yet another upgrade coming soon, which is expected to resolve all the unresolved issues. It is also expected to come up with new techniques that are said to increase the network speed by a lot.
However, keeping aside all other factors, the fact that the merger has been responsible for lowering energy consumption, is an achievement that needs to be acknowledged and appreciated. It is soon expected to bring about changes for not only itself but other crypto assets as well.
Slow transition speed and high cost have been two of the biggest hurdles for Ethereum. The platform focuses on decentralization and security. Though there is a lack of scalability. Hence, there is always a spike in traffic, and transaction speed and cost also tend to be solved. At the recently held Ethereum Community Conference (EthCC) in Paris, co-founder Vitalik Buterin stated that the network was only “40 percent complete”. The reasons were the hurdles.
Buterin anticipated a future where Ethereum can hit the speed of 100,000 transactions per second (TPS). Buterin has also mentioned five key events that required it to happen. What the events mean for Ethereum, and how much time it will take, all are going to be explained in this article.
Overview Of The Merge :
The Ethereum community and developers consider the Ethereum Merge as one of the most critical and remarkable upgrades in the history of cryptocurrency. It is going to shift Ethereum’s consensus protocol from proof-of-work (PoW) to proof-of-stake (PoS). The upgrade will automatically render mining obsolete along with shifting to staking for block validation and addition. This merger will massively decline the energy consumption of the network. According to some predictions, the power requirement is going to decrease by 99.9 percent.
This upcoming merge is wished to increase throughput. But the improvement is not predicted to be very massive. Ethereum developers are expecting the transaction speed will increase by a maximum of 10 percent. It will reduce the fee.
The Surge :
The move to PoS alone may not impact a massive enhancement in transaction speeds. But, it will open up the ways for future innovations, like sharding. It will massively affect the network performance.
Sharding is the secondary blockchain branch. It helps to process some transactional data and reduce the pressure on the mainnet or main blockchain. It will raise the throughput along with helping to bring down gas fees. An official Ethereum blog post noted, that Sharding should occur sometime in 2023. It will depend on how quickly and smoothly the Merge will work.
What Is The Verge :
The Verge refers to the technical updates like ‘Verkle proofs’ and ‘clientless states’. The updates are wished to optimize storage on the Ethereum blockchain. It also reduces node size. This helps to enable any network participants with a laptop along with a few megabytes of space to join in the validation process.
About The Purge :
This stage starts with ‘purging’ previous data that is not needed at present time. This process will decrease file sizes enough. It is for tiny computing units such as mobile phones to be able to run Ethereum nodes because of the need for low storage.
The Splurge Explained :
This stage is associated with minor changes. It will be done to ensure that the blockchain will be there permanently and run at its maximum capacity. Additionally, the assumption is that by this stage, the user will have a version of Ethereum that will be the best. It can be or can continuously process close to 100,000 transactions. presently, the network is actively searching for potential issues including preparing for emergencies.
The Merge is a crucial and remarkable milestone for the Ethereum network, regardless of the whole crypto market. Though, this is not the ultimate destination. There is a long way waiting to climb before Ethereum is 100 percent complete. But, mainly the reduction of fees and increase in transaction speed is going to help out the users across the network. Bitcoin is continuing with the PoW mechanism, but Ethereum’s improvement led major users to shift into the network.