In recent years, digital currencies have rapidly gained popularity. But with this has also come a vast amount of negative press. But with the development of Ethereum 2.0 and the changes to online security and privacy, could Ethereum 2.0 be the beginning of huge changes to the industry? In this article, we will be looking into whether or not these major changes could be the beginning of tighter security surrounding online transactions using Bitcoin and other online currencies.
One of the biggest benefits to come from Ethereum 2.0 is increased privacy. With major changes in the form of proof of stake operating systems and efficiency increased privacy is at the forefront of developments in cryptocurrency. With investors looking for a more secure way of making online payments, it comes as no surprise that so many are relying on digital currency to provide a stable investment platform. This is due to the new wave of Generation Z investors that value privacy when trading online. This has led to a number of trading platforms and brokers focusing on privacy as the forefront of a number of investments.
The Use Of Proof Of Stake systems
In addition to increased privacy, it is important to note that Ethereum 2.0 is set to make the switch from a proof of work system to a proof of stake system. This will make them the first cryptocurrency to do so, and in turn, will provide their users with a new platform to trade upon. There are a number of key benefits that come along with the Point of Stake systems, one of which is the reduction of energy being consumed. In a Point of Work system, there is a huge amount of energy consumed in order to mine bitcoin and have them placed back into the system.
With a Point of Stake system, there is love energy consumption to create new tokens. In addition to this, the risk of centralization is greatly reduced through a service such as this as miners can only claim a certain percentage of blocks based on the stake that they already own. This, therefore, prevents one person owning most of the currency and creates competition amongst.
Bitcoin VS Ethereum
Though Ethereum is making huge changes to the industry with their latest set of improvements there are still many wondering if they can indeed compete with Bitcoin. At this time, Bitcoin is the dominating cryptocurrency with hundreds of people per day making investments with cryptocurrency. Though there are a number of developments that may suggest Ethereum coming out on top, the nature of Bitcoin and the familiarity of the process is what makes it appealing to many at this time. In addition to this, Bitcoin also provides opportunities for reliable bitcoin Forex brokers as well as other trading platforms to provide an enjoyable experience for investors.
In addition to the ongoing battle between Bitcoin and Ethereum, it is important to acknowledge that changes in operating systems will lead to increased regulation. This in part comes with the mass adoption of online currencies. As more and more businesses begin to use online currencies, there has been increased talks around the cryptocurrency industry within the UK. This has since escalated with the FCA guidelines on crypto-assets being updated. This update by the Financial Conduct Authority could suggest that regulations of these cryptocurrencies could be in place by the end of 2020.
The final change that is set to be enhanced with the release of Ethereum 2.0 at the end of 2020 is user experience. As technological advancements are being made, user experience is becoming more and more important as brokers and trading platforms are trying to encourage new audiences. This urge for amazing user experience has led to the development of Ai software and other computing networks being developed to streamline processes. Deep learning algorithms and artificial intelligence have helped to make investments easier and increase the profit margins. This is crucial as it allows those with full-time jobs to rely on automated forex robots and other software’s to make investments whilst they are at work or away from the internet.
This level of automation and user experience has not only bettered the trading experience for those that have been doing it for a long time, as well as beginners. This has helped with the expansion of trading but also the popularity of cryptocurrencies as there are more and more people taking advantage of trading platforms.
Though this automation is in full swing, this is only set to improve as computer software and other operating systems become more intelligent. This is set to expand the industry further and even increase the number of investments taking place year on year.
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