Sirwin
Sirwin

Why Ethereum?

By Ethersven | Ethereum Knowledge Drops | 10 Dec 2022


In my opinion Ethereum is the superior cryptocurrency for a number of reasons.

First, Ethereum is the most widely used blockchain platform for decentralized applications and smart contracts. This means that Ethereum has a large and active developer community, which is essential for the continued growth and innovation of the platform. Additionally, Ethereum has a strong track record of successful upgrades and improvements, including the recent implementation of proof-of-stake (PoS) consensus, which has significantly improved the scalability and security of the network.

One of the key challenges facing cryptocurrencies like Ethereum is scalability, or the ability to handle a large number of transactions per second without compromising the integrity of the network. Ethereum's layer 2 scaling approach is the most promising solution to this problem. Unlike other cryptocurrencies that aim to scale by increasing the block size or implementing off-chain transactions, Ethereum's layer 2 approach uses a set of protocols and technologies that operate on top of the Ethereum blockchain, allowing for faster and cheaper transactions without sacrificing security or decentralization.

Some examples of Ethereum's layer 2 scaling solutions include Optimism and Arbitrum, which are Optimistic rollups.

Optimistic rollups (ORs) are a type of layer 2 scaling solution for the Ethereum blockchain. They allow for the execution of smart contracts and the transfer of tokens off-chain, while still maintaining the security and decentralization of the Ethereum mainchain.

ORs work by allowing transactions to be bundled and processed off-chain by a group of validators. These validators are responsible for verifying the transactions and ensuring that they are valid according to the rules of the smart contract. Once the transactions have been processed and verified, a small piece of data, known as a "proof," is generated and submitted to the Ethereum mainchain. This proof allows the Ethereum network to verify the validity of the off-chain transactions without having to process them directly on the mainchain.

One of the key benefits of ORs is their ability to significantly improve the scalability of the Ethereum network. By processing transactions off-chain, ORs can handle a much higher volume of transactions per second than the Ethereum mainchain can on its own. Overall, ORs offer a promising solution for scaling the Ethereum network, allowing for faster and cheaper transactions without sacrificing security or decentralization.

Then, there are Zero-Knowledge-Rollups (ZKRs).

They are another type of layer 2 scaling solution for the Ethereum blockchain. Like Optimistic rollup solutions, ZKRs allow for the execution of smart contracts and the transfer of tokens off-chain, while still maintaining the security and decentralization of the Ethereum mainchain. ZKRs use a form of cryptography called zero-knowledge proofs (ZKPs) to ensure the validity of off-chain transactions. ZKPs allow for the verification of the correctness of a computation without revealing any information about the input or output of the computation.

Additionally, because ZKPs are more efficient than other cryptographic techniques, ZKRs are also able to handle a higher volume of transactions per second than other rollup solutions.

ZKRs are currently viewed as the holy grail of Blockchain scaling, but they are still in their infancy, as all ZKR projects are still in the private alpha phase.

Summary

Overall, Ethereum's combination of a large and active developer community, successful upgrades and improvements, and effective layer 2 scaling solutions make it the most promising cryptocurrency to me. Its ability to handle a high volume of transactions without sacrificing security or decentralization sets it apart from other cryptocurrencies and positions it well for continued growth and adoption.

 

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Ethersven
Ethersven

Writing about Ethereum.


Ethereum Knowledge Drops
Ethereum Knowledge Drops

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