Ethereum 2.0- Serenity Paving the Way to the Future of Blockchain Enterprise
The Serenity Hardfork to the Ethereum blockchain will mark the transition from "Ethereum 1.0" to "Ethereum 2.0". What does this mean for Etheruem investors and users of this cryptocurrency?
Etheruem is the second largest cryptocurrency by marketcap. With a marketcap of over $19 billion, it has a dominance of approximately 8% of the market. Etheruem is a proof of work cryptocurrency that has been successful in its creation of decentralized applications (dApps) on its blockchain. The Ethereum investment thesis is that this asset can and does support applications that companies and individuals can use to streamline and support their operations. This is an "Ethereum 1.0" perspective.
The Ethereum Enterprise Alliance, a group created to support companies using the Etheruem blockchain as a service has been effective in attracting Microsoft, JPMorgan, Intel and BP into their network. This has been very helpful for the growth of Etheruem and blockchain as a whole. What will Ethereum 2.0 offer to the world, and what are the implications of the upgrade?
The Serenity upgrade, set for January of 2020, will lead to the dividing line between Ethereum 1.0 and 2.0. The major changes will be implementation of sharding on the Etheruem network. The major problem Ethereum faces is scalability. As Ethereum has grown, its blockchain has been taxed by the amazing amount of users who want to power their enterprises through the Ethereum blockchain. We saw the issues that cryptocurrencies had during high utilization of its network during the bull market of 2017. Scalability is a huge issue, and with the Ethereum blockchain being rapidly filled by business dApps, we need Ethereum 2.0 to meet the needs going forward. In addition, the "Casper" upgrade will follow Serenity in 2022 that will move Ethereum's mining method from proof of work to proof of stake. This will be an energy saving and efficient upgrade.
As a user of and investor in Ethereum, I am confident that this transition will be handled well. The Etheruem enterprise support aspect of the blockchain will be critical to Ethereum and cryptocurrency's continued adoption. Serenity's "sharding" will help decentralized applications to scale across the blockchain. As large companies continue to join the Ethereum Enterprise Alliance, expect to see Ethereum's market dominance rise.
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