The Impact of Ethereum 2.0 On The Market

2023-03-20, 06:51

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<a href="/uk/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> 2.0 is a next-generation platform that solves some of the problems faced by the current platform. As mining energy consumption and trading demand increase, <a href="/uk/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> faces rising gas prices and scalability issues. To address these issues, the <a href="/uk/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> development team spent several years working on upgrades.

Last year, <a href="/uk/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> conducted a large-scale upgrade called the "Merge." In April of this year, the "Shanghai" block is planned to start upgrading, as well as the sharding upgrade before 2024.

Given this, <a href="/uk/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> can eliminate the energy consumption required for mining, implement sharding to shard trading data, and increase the trading speed from 15 transactions per second to a theoretical 100,000 transactions. In addition, it will "burn" tokens and introduce a deflationary mechanism to improve the value and utility of tokens.

Based on the upgrades before 2024, <a href="/uk/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> will become a powerful platform with the advantages of high-speed processing and mining environments. There is no doubt that this will have a significant impact on the market.

Reference:
https://<a href="/uk/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a>.org/ja/upgrades/sharding/#relationship-between-upgrades

<div class="blog-details-info">
<div>Author: **Peperon**
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
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