TL;DR Breakdown
- Ethereum’s relation with Bitcoin is that of a follower, but now coming to an end.
- Ethereum 2.0 would release new and improved framework.
- The queen would be able to act independently walking out of Bitcoin’s shadow.
Ethereum (ETH) has been dubbed the unofficial queen of cryptocurrency, and for a good reason. Bitcoin, being the pioneering original cryptocurrency, has been declared the king of cryptocurrencies and coins, and ETH being one of the early movers in its shadow, became the queen without even prompting. Ethereum and Bitcoin share a weird relation that has been one of the master and follower, or that of a king and queen where the queen follows where ever the king goes.
Ethereum 2.0
Understanding the weird relation with Bitcoin, Ethereum’s founder Vitalik Buterin initiated the Ethereum 2.0 protocol that would allow the queen of cryptocurrency to get out of under the king’s shadow and make a place for itself. Before we talk about some of the changes that would come with ETH 2.0, it is vital to understand that situation. Before the ETH 2.0 protocol shift was announced, ETH had already established a good base within the decentralized applications (dApps) where the king of cryptocurrency hasn’t been able to step into that realm owing to the fact that the Bitcoin protocol is on autopilot in the absence of its notoriously famous founder Satoshi Nakamoto.
The dApps arena provided the propelling necessity that would allow ETH to think of the situation and try to walk out of Bitcoin’s shadow. Enters the shift from proof of work to the ETH 2.0 proof of stake network. Bitcoin operates on a proof of work framework where miners submit the proof of their work, i.e., the algorithms they solve, and in return, they get the fees and support the framework. Proof of stake framework only needs validators with the real value of the cryptocurrency locked away in either fiat or other types of assets.
Why Ethereum 2.0 is better?
To begin with, like all proof of stake blockchains, ETH 2.0 is also going to be energy efficient. The energy efficiency would be 99.9 percent, saving a whopping 45,000 gigawatts per hour, as reported by Bloomberg. This is just one of the advantages that would allow the new blockchain to perform better.
The other and most important benefit ETH 2.0 would bring is to take the cryptocurrency price movement out of the king Bitcoin’s shadow. This is something that has started to happen already. If you compare the BTC and ETH price charts side by side, you’ll be amazed to see the identical movements on these two charts. But very recently, the queen of cryptocurrency has finally decided to move out of the king’s shadow and record its independent patterns and movement.
Last but not least, the advantage comes as security of assets in terms of growth and value. We all know that Bitcoin is as volatile as a cryptocurrency can get, and this keeps the whale in the play while the small traders are on their feet all the time. With the proof of stake protocols in play, Ethereum would be presenting a better and safer opportunity to the traders while the ETH value would be backed by tangible assets.
