With so much development currently taking place in the world of blockchain and cryptocurrency industry, many cryptocurrencies have started to take the world economy seriously and have started improving their performance and reliability over the course of time. Most importantly, the blockchains are more focused on introducing compliance towards their services that almost every financial entity tends to adhere to. To be precise, central banks alone are reported to have been spending around $270 million per year in the compliance sector.
Another factor that has led to the recognition of these developments and efforts is to eradicate the network disconnectivity and latency issues that the cryptocurrency/blockchain users were reported to have been facing. To make things worse, these occurrences and instances had elevated in the past few years.
This is a problem that Ethereum (ETH) recognized before any other blockchain/cryptocurrency and started working on to finding a solution for it at the earliest. Recently, Ethereum (ETH) dropped the news on their users as well as the entire crypto-community that it is planning to introduce Ethereum 2.0 and have already commenced their development programs.
Ethereum has taken this step with the already discussed issues that the Ethereum (ETH) users were facing and addressed it by developing ETH 2.0. Ethereum is set to launch 2.0 by the end of the current year and will be adapting the proof-of-stake model.
Ethereum went onto state that they will be switching from their proof-of-work module that is Consensus Algorithm based on the proof-of-stake module. This announcement made by ETH has left the Ethereumusers with very less options and based on this development, either the users will have to switch to alternative coins or register themselves as the ETH Stakers.
One of the major factors behind this problem is that the equipment that users currently use to mine ETH would become obsolete because of the transition from the proof-of-work module to proof-of-stake module.
Although cryptocurrency and blockchain analysts speculate that this change will result in Ehereumlosngmany users, they also predict that Ethereum moving away from mining and POW to POS module will help Ethereumbecome more stable and be able to target a larger market than it is currently handling.