Ethereum has been performing more phenomenally than Bitcoin on the cryptocurrency market. After suffering a month-long plunge, the world’s second-biggest cryptocurrency grew around 24% since March 11 whereas Bitcoin gained only about 16%.
The purpose for the growth appears to be an upcoming upgrade that will mend the working of the Ethereum blockchain and in the process make it “more scalable, secure, and more sustainable.”
This update has been in progress for a very much period, on March 15, Ethereum effectively completed a critical test that ends right before the finish line. According to investors, ideally, there will soon be a wave of new adopters.
Besides, an analyst at the Ethereum Foundation expressed that this upgrade can decrease energy consumption by at least 99.95%.
As blockchains are decentralized, no single entity is liable for updating the shared ledger. Rather, they depend on the organization of PCs to record transactions, cross-reference them and arrive at a common consensus agreement. This implies that a bigger piece of the decentralized network confines a for it to be recorded on the distributed ledger, making the system tamper-resistant.
One of the mechanisms built into Ethereum is called ‘Proof of Work’ (PoW). This requires members of the network (crypto miners) to utilize a lot of computational power to solve an arbitrary mathematical puzzle.