BlockTopson

The imagination of ETH2.0

In this post I will talk about ETH2.0, which is the most important thing for Ethereum.

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After upgrading to ETH2.0, its consensus algorithm will change from POW to POS, and the cost will be as low as $0.002 per transaction. This will lower the entry threshold of new users and enhance the activity of the network. On the other hand, due to the low gas fee, more projects will be able to develop on ethereum.

  • Efficiency – Ethereum will become 99.95% more energy efficient. It is estimated that Proof of Stake will no longer require an entire country’s worth of power to secure the network.

  • Sharding – Ethereum will be broken into 18 “Shards” that operate at the same time. This will drastically improve efficiency.

  • Staking – Ethereum will move to Proof-of-Stake Consensus, so everyone can stake and help secure the network.

  • Security – Compromising the network will become much more expensive under Proof-of-Stake. 51% attackers will also be easily identifiable with validator addresses and can be forked away from the network if there is an attack.

In my opinion, Ethereum is moving forward to its goal: To build a high performance, efficiency and lower cost decentralized blockchain.

If the merge is successful, what will come out?

Ethereum will be more competitive than other blockchains, this will push Ethereum to be the NO.1 blockchain. 

There are 66B assets locked in DeFi currently, and Ethereum has 38B in TVL. After the merge is successful, more projects will migrate from other blockchain to Ethereum, which is not good news for other EVM and even No-EVM blockchains.

So for me, the strategy is long ETH, short other blockchain. Why? because the market didn't need a lot of duplicate blockchains. A lot of EVM chains have the same function with Ethereum but with the lower speed and higher cost, the user will select the most excellent blockchain in the long-term, so the others will be dropped. Here is an example, many years before, there are more than 10 bitcoin forked blockchain such as BCH, BCD, but now almost all of them was die, only bitcoin was survive. So the same things will be happened on ethereum, all the other competitor will be defeated at last. Such as Solana, Polkadot, Cosmos, Avalanche etc, just sold them, buy ETH.

Future

APPLE stock market cap is 2.7trillion, currently bitcoin marketcap is 0.45trillion, and ethereum marketcap is 0.23trillion. As the most powerful blockchain platform in Web3, I think a lot of new DAPP will be deployed in the Ethereum and the Ethereum marketcap will exceed 1 trillion. Just waiting, that day won't be too long.