/https://specials-images.forbesimg.com/imageserve/604b7cb70abd9adbafb89f54/0x0.jpg "Ethereum Cofounder reveals how a radical upgrade could challenge Bitcoin for the dominance of the crypto price")
Ethereum, the second largest cryptocurrency after bitcoin, has soared in the past year and risen alongside the rising bitcoin price.
The bitcoin price has obscured the late 2017 highs of around $ 20,000 per bitcoin, roaring to nearly $ 60,000 in recent weeks, while the ether-ether token has also forged in fresh territory – 30% higher than the early 2018 highlight.
A proposed upgrade of the ethereum blockchain that will destroy (or ‘burn’) ether tokens could mean that ethereum becomes more “healthy” than bitcoin, according to co-founder of Vereik Vitalik Buterin.
The price of bitcoin and etherum has risen over the past few months and risen to overall highs … [+]
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Ethereum’s upgrade, known as EIP-1559 and part of a broader move to ethereum 2.0, will review the current transaction fee system, and users will send a fee to the network itself instead of the so-called miners who maintain the network. These fees will then be burned, reducing the overall ethereal stock – something that is itself a controversial topic among the cryptocurrency community.
“If bitcoin and its fixed supply are healthy money, then make a declining supply [ethereum] ultrasound money, “Buterin asked about a recent installment of the Tim Ferriss Show podcast with tech investor Naval Ravikant. ‘Healthy Money’ refers to the stability and usefulness of a currency as a value store.
While Buterin calls the question a ‘joke’, he explains that there is a clear possibility that the radical upgrade of the ethereum network, which was approved by developers last week and is expected to be used in July, could lead to a shrinkage. of the etherum network.
‘If the demands on using etherum were high enough, there would actually be more [ether] destroyed as created, “Buterin said. Actually, it’s not even that far-fetched. If you look at the transaction fees for the past month, it was actually many days longer than the block rewards for that day. ‘
The recent extreme price increase in ethers, which is seen adding ethereal 400% since the larger bitcoin and cryptocurrency market rose in October, comes amid a rise in interest in decentralized finance (DeFi) – which uses cryptocurrency technology to traditional financial instruments such as loans and interest.
With many of the biggest DeFi projects built on top of the ethereum blockchain, the token skyrocketed as users flooded the network. Meanwhile, the latest cryptocurrency craze for so-called non-fungible tokens (NFTs) has also led to heavy traffic on the underlying ethernet network.
When Ravikant warned that these applications built on top of etherum could be the victim of ‘hacks … burglaries and failures’, Buterin called the controversial cryptocurrency, linked one-to-one with the US dollar . like a “ticking time bomb” [demon]”for bitcoin – emphasizing the long-standing competition between the two largest blockchain ecosystems.
The latest price increase in ethers has pushed the price higher above the early 2018 highs – with … [+]
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While most miners appear to be on board the planned ethereum upgrade, some – including the large etherum mining group SparkPool – have registered their opposition to it.
“I am concerned about a possible rebellion by the miners, which could weaken the credibility of the ether network,” Texture Capital CEO Richard Johnson said in an email. Johnson added that he was “skeptical” whether the upgrade would have a “significant” impact on food fees, which have risen more than ten times in the past twelve months.
Amid the rush to etherum, a number of ethereal competitors have emerged over the past few months who claim to offer similar decentralized platforms with faster transaction times and lower fees, and want to take advantage of etherum’s problems.
“In the current crypto bull run, it looks like ethereum could become a victim of its own success,” Antoni Trenchev, managing partner at digital asset manager Nexo, said in an email. “The huge influx of users, developers, decentralized applications, DeFi protocols, as well as the growing NFT craze, is storming the blockchain, and that’s putting a lot of pressure on it.”
However, Trenchev added that he expects to get a look at the real bull run soon enough after the EIP-1559 release, with the right hammer from the bulls coming down with ethereum 2.0. ‘