The blockchain space has grown exponentially in recent years. When you think of its early days when BTC was traded between a handful of online privacy fanatics to the giant space that has grown around it today, it is nothing short of remarkable. But while the growth of Bitcoin and the growth of blockchain applications has been exponential, it is ETH 2.0 that will likely take blockchain adoption to the next level.
Bring blockchain to the masses
No one can deny the place of Bitcoin in the market as an alternative to the traditional financial system. It has proven its resilience in the midst of a global crisis and has shown its value as a store of value, transfer of value and speculative trading asset. However, the Bitcoin blockchain is still not equipped for mass adoption. In fact, no Proof of Work blockchain yet has the capacity to make cryptocurrency truly massive, although many scaling solutions are being developed from the Lightning to Liquid network.
This scalability problem became particularly evident around the world in 2017 when the Ethereum blockchain saw an insatiable demand for collectible digital felines that were obstructing the network. Its proof-of-work consensus mechanism has limited TPS in chains, making it nearly impossible to process multiple transactions or run large-scale applications.
While achieving full turing and executing smart contracts will always be Ethereum's first brilliant achievement in space, technology is evolving. Her community made the bold decision to turn into Proof of Stake and migrate to a whole new blockchain: ETH 2.0. This will enable cro ITRE for mass use.
With the largest developer community in the space, Ethereum certainly has the brain and the manpower to do it. With the use of PoS, sharding and other technologies, the performance of ETH will be modified beyond recognition, thereby eliminating the problem of network congestion caused by its current low TPS.
This means that ETH will be able to evolve and promote more applications, from DeFi and games to commercial and retail applications. The growth of the ETH 2.0 ecosystem will be enormous, finally allowing the blockchain space to reach massive adoption.
Committed to the growth of Ethereum
OKEx is committed to innovating and developing the crypto space thanks to our constantly expanding suite of products and to concluding strategic partnerships that allow us, and the space as a whole, to develop. This is why we are taking the initiative to educate on ETH 2.0 in order to push for mass adoption. It was a natural decision to support the transition to ETH 2.0 with the OKEx mining pool , OKPool, the fifth largest mining pool in the industry, in collaboration with Prysmatic Labs to become one of the first validators of the Topaz test network (testnet for ETH 2.0).
The Topaz testnet will serve as a bridge during Ethereum's transition from PoW to PoS and, after its transition scheduled for July 2020, OKEx will offer ETH staking to our members of the mining pool. The OKEx mining pool will be particularly important for extending the rewards of ETH 2.0 blocks to small market players. We hope to bring value to them because the increased demand for staking will limit the supply of ETH and create an additional shortage for the part.
With this bold initiative, we aim to accelerate the growth of Ethereum while actively innovating in our mining basin and generating traffic for ETH 2.0. We are proud to be at the forefront of the most anticipated event in cryptography, to contribute to the ETH ecosystem and to promote its continuous development. In fact, our belief in the ability to bring Ethereuem blockchain the masses is another reason behind the decision to OKEx to launch the trading of options ETH .
Growing options trading with ETH
The transition from Ethereum to ETH 2.0 is going to be epic in space, but the same goes for the rise of cryptographic derivatives. We firmly believe that the derivatives market will grow too large and become four to five times larger in the next few years, attracting many institutional traders. We also believe that this growth will be fueled by the addition of additional trading capabilities and sophisticated instruments, such as options trading.
Options trading gives traders more versatility to hedge their risk and there is less risk than traditional futures because traders have the right - but not the obligation - to buy or sell on the date agreed. The fact that they have rights, not obligations, can help traders securely lock the future value of their crypto assets without being forced to take unwanted action in a volatile market.
BTC options have been so successful on OKEx since our launch late last year that we have also quickly seen the potential demand for ETH options . Each additional product we offer helps the market become more attractive and adapts to the demands of a growing pool of traders, allowing them to maintain their more flexible price strategies while diversifying the market.
Final thoughts
ETH 2.0 has all the promise to take blockchain and crypto adoption to the next level and, at OKEx , we are ready to join forces with Ethereum . Every business in this space should actively help the ecosystem to grow now and make sure the infrastructure is ready for mass adoption next time.
