The general Cryptocurrency market fell to around $800 billion. But investors and traders are banking on Ether’s potential. By the way, are you too trading on Ethereum? You can trade safely with a Crypto trading app. Click here to read more.
Ethereum might be the second best in terms of overall market capitalization. But in terms of technology usage, they are next to none among the major Cryptos. Therefore, a general question might crop up, why will Ether Take over Blockchain in the year 2023? The article will try to get into the discussion to understand the issue.
What Is Ethereum?
This section is mainly for new readers who need a better idea of Ether. Ethereum is a decentralized global software platform. It is backed by the Blockchain. Among Cryptocurrency investors and enthusiasts, it is known as the native Cryptocurrency of Ether.
The Blockchain backs ether. Here, the records and transactions are done in a distributed ledger. This denotes the information is spread across a wide network of computers. Once you record the information, it can not be changed; it becomes immutable.
Why Will Ether Take Over The Blockchain In The Year 2023
As discussed above, the Cryptocurrency world is falling in its overall market value. Ether is also following the same trend. But why do you think that there is a wave of possibility with Ether? There are constructive reasons to back the point of discussion. Let us try to understand this here.
If you are an Ether enthusiast, the value of the digital currency in the year 2015 was around a mere 1.35 USD. After that, ether underwent a meteoric rise and reached 4444.53 USD by the year 2021! Therefore there is no doubt that the investors benefited from the rise. Though Cryptocurrency experienced a fall in its value over time, it somehow held the promise and trust among investors.
Ether VS Bitcoin
To understand things in perspective, we need to have a general discussion comparing both Cryptocurrencies, Bitcoin and Ether. Bitcoin is the highest in terms of market capitalization. On the other hand, Ethereum has second place after Bitcoin.
During the drier period, both the Cryptocurrencies, Ether and Bitcoin, observed a fall right from the wake of the year 2022. Both have been deteriorating. While Bitcoin fell by around 71.05% in its value, Ethereum also met the same fate; it fell to 61.01%. You could well understand the connection.
The Shift To Proof Of Stake
Many investors backed Ether and placed it before its rival, Bitcoin. There are reasons for it. First, Ethereum went through a merger. The developers did it to increase the speed of transactions and lower the cost.
Ethereum shifted itself from the Proof of work to Proof-of-Stake. Proof of work is a highly energy-consuming process. Moreover, Proof-of-work involves complex computation.
But Proof of stake is much more energy efficient. According to expectation, the Ethereum platform or Ether will be able to successfully cut down more than 99% of the consumed energy. This is important from the point of view of understanding things.
Consequent to the shift in technology, Ethereum will be able to achieve decreased prices and increased speed. Thus, Ethereum is all set to find itself in an advantageous position compared to that Bitcoin. Therefore, Ethereum can unleash a wave of positivity so far as the current developments are concerned.
There is no doubt about the fact that Ether is full of promise as it has received a complete shift in its mining technology. The shift from the proof-of-work to the proof-of-stake can increase not only the speed of transactions but also lower the cost. These advantages propel the ether lovers strongly back the coin as the news is near at hand.