As per Lubin, the Ethereum (ETH) blockchain has already put Bitcoin in the shadows. “The Ethereum network long since exceeded the Bitcoin landscape in areas of developer participation, daily transactions, transaction value, and token number.”
Ethereum co-founder Vitalik Buterin said that by adhering to the same technology, Bitcoin risks falling behind. Interestingly, the second-largest cryptocurrency is set to begin “The London Upgrade” in a matter of hours. Five Ethereum Improvement Proposals are included in the upgrade (EIPs). Because of its fee-burning method, EIP-1559 has already been hailed as perhaps the most important.
Each moment a transaction is completed, a random quantity of ETH is taken out of circulation. Each year, the token quantity will be reduced by 76%, resolving Ether’s problem of endless supply and price inflation. This method aims to achieve the same result as Bitcoin’s limited supply limit, which delivers what Lubin describes as “ultra-sound” currency.
Furthermore, transaction queues will be reduced, and deals will become less expensive. Instead of a fee bidding structure, there will be basic costs and discretionary tipping of miners for processing priority.
Nonetheless, discussions and disputes over the dangers of EIP-1559 have erupted. With the shift in miners’ incentive dynamics, it is conceivable that dissatisfied miners may rebel, putting network safety at risk. This may also open the door for rivals like Binance Smart Chain and Cardano to catch up to Ethereum. Ultimately, activating EIP-1559 exposes you to the danger of harmful usage patterns and unanticipated problems. Several of these have previously been identified.
The remaining EIPs mostly address smart contract queries, refund minimization, smart contract amendment, and difficulty bomb post-ponement.Of late, SEC Chair Gary Gensler declined to address concerns about Ethereum’s regulatory position. Nonetheless, Lubin claims that, although some ventures are unregistered assets, Ethereum is “sufficiently decentralized.” He even cited former senior SEC official Bill Hinman, who said Ethereum was not secure.
The problem is that the regulating body subsequently stated that Hinman’s remark was merely a personal opinion. In terms of future advancements, Ethereum is in the transitional stage from the proof-of-work consensus protocol to the proof-of-stake consensus protocol. There is no set timetable for the carbon footprint friendly overhaul, but Buterin believes it will happen within the next several months.
Is Ethereum really ultra-sound money? @emilychangtv and @thestalwart talk to Ethereum co-founder Joe Lubin ahead of the “London Fork.”
Lubin says Ethereum will be “orders of magnitude” bigger than Bitcoin https://t.co/7UdrI2Gt6c pic.twitter.com/D8W06Kbs32
— Bloomberg TV (@BloombergTV) August 4, 2021
Nonetheless, the values of Ethereum and Bitcoin have risen by 8.1% and 3.1% the past 24 hours, respectively. Furthermore, Ethereum was changing handsat $2,685 at the time of writing, while Bitcoin was trading at $39,016. The cryptocurrency world is waiting anxiously to see how Ethereum’s price reacts to the London update.