cryptocurrency

Could Ethereum’s First Mover Feature solidify the dominance of the smart contract space?

Ethereum has now become one of the most popular crypto-blockchains, and its upgrade, also known as ‘consolidation’, will transform the blockchain from a Proof of Work consensus mechanism to one that is more efficient, more secure, and less energy-intensive. proof of stake method. The method will also be better to implement new measurement solutions.

The upgrade is much needed now, as it will also be able to support the growing number of Ethereum users. It aims to solve problems such as slower speeds and higher fees. So it makes sense to make this transition sooner rather than later. But unfortunately it is not so simple.

What is the difficulty of the bomb?

In the Proof of Work consensus mechanism, miners must solve complex math problems to earn a reward. Bomb difficulty, a special token that has always been a part of Ethereum, increases the computing difficulty of mining, eventually making it impossible to do so. When this ‘bomb’ goes off and spins its course, it will be an indication that the days until the so-called consolidation are numbered, and it will mean that eventually proof-of-work arithmetic problems will become impossible to solve. Miners will then lose their profits when they try to mine.

It would only make sense for miners to eventually abandon the Proof of Work model and move to the Proof of Stake method. But before all this can happen, Ethereum developers must all agree that enough testing has been done so that the merge can be detected smoothly. But so far this has not happened, and the difficulty of the bomb has been postponed, not for the first time, but for the fifth time now. More testing is still needed to ensure the transition will be smooth, which we hope will take place around September 15, 2022.

Experts believe that the successful implementation of the merger could become one of the greatest achievements in the history of cryptocurrency. A smooth transition would transform one of the most widely used blockchains into a smoother and more affordable operating network that would be able to support many applications in the crypto world.

But if the Ethereum developers can’t do that soon, it could mean trouble moving forward. The longer it takes, the more likely it is that other smart blockchains capable of contracting such as Solana, Avalanche or Cardano will capture market share first.

Sepolia Test Network

But the good news is that the Sepolia testnet, a two-step process, has been successfully completed. This testnet merger takes the project one step closer to upgrading the Ethereum mainnet later this year.

Currently, Ethereum is up about 5.15% since yesterday, and the media is speculating that this is due to this successful completion and the upcoming “merger.”

Chris Terrya member of the BPSAA Board of Directors and VP Enterprise Solutions in Smart Fithe US-based open lending platform, wants to share his thoughts on the matter, where he says:

“The bad news is that the Ethereum developers have hit the hard bomb that was a key step for their planned consolidation towards the end of the year. The good news is that they were able to get the Sepolia testnet working. The Ethereum upgrade, now years overdue, shows just how hard this work is. Every passing day. It opens the doors to projects like Cardano, Solana, Avalanche, etc. But, just like Bitcoin, Ethereum has a first-mover advantage which is still huge. If Ethereum finally manages to establish a stake, it will undoubtedly solidify the dominance of the smart contract space. But they better move on. quickly “.

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