Is Bitcoin at risk of being left behind when ETH 2.0 is completed?


Bitcoin and ETH have continued to maintain and consolidate their positions in the cryptocurrency market for a long time. Over the years, both coins have updated their technology to continue leading the race. While the Lightning Network is helping Bitcoin improve transaction speed and scalability, upgrading ETH 2.0 along with other protocols like 'rollup', 'sharding' and moving from Proof of Work (PoW) to Proof of Stake (PoS) aims to help ETH mark its territory.


In a recent podcast, Vitalik Buterin, co-founder of Ethereum, stated that ETH2.0 is a collection of major upgrades that the ETH ecosystem has wanted to make long ago. The two major upgrades on Ethereum, according to Buterin, are 'sharding' and 'converting to PoS'.


“Sharding solves a big problem with blockchains, which is scalability. Here, instead of everyone participating in the network having to download and verify every transaction, now just download and verify a small portion of the transaction. ”


(embed) https://www.youtube.com/watch?v=3x1b_S6Qp2Q (/ embed)


There has been a lot of speculation about this transition. While some people think that PoS can help reduce hacking and reduce energy consumption, and is more environmentally friendly than PoW, some points indicate the 'centralization' that PoS can bring.


The PoS system prioritizes entities with a higher number of tokens than entities with a lower number of tokens. This can result in large stakeholders having a higher profit margin. As a result, large stakeholders grow faster than a small stakeholder. At a given time, as costs become a part of mining operations are becoming increasingly expensive, small stakeholders may have no choice but to give up, causing focus.


However, when Buterin was asked about this concern in one of the interviews, he stated that PoS was not focused, insisting that PoW was much more focused than PoS.


However, the problem is still there. Can ETH, fully deploy this protocol, lead the race and beat Bitcoin?


Marketing director at SetProtocol and ethhub_io ’co-founder Anthony Sassano, thinks that this possibility is possible.


In one interview Sassano recently compared Bitcoin and Ethereum and their protocols and concluded that the Lightning Network has failed so far, saying it is not ‘suitable to the product market’.


“No one wants to spend their Bitcoin (...) I feel like if Bitcoin could build a stablecoin on top of Lightning in some way, it would be a more suitable product for the market and motivating people. want to spend BTC ”.


Annie


According to AZCoin News




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