Objective of Ethereum 2.0
The main goal of the Ethereum 2.0 update is to improve scalability so that the network can handle more transactions without delays or high fees.
While the full effects of the update won’t be felt until it’s fully rolled out, some of the possible use cases for Ethereum 2.0 include:
- Support the large-scale adoption of blockchain technology in private companies and enterprises;
- Create more decentralized autonomous organizations (DAOs) and governance models based on smart contracts and trustless interactions;
- Ethereum token launches that will allow new projects to raise funds and launch their own tokens on the Ethereum network;
- The continued expansion of non-fungible tokens (NFTs) and other digital assets that can be stored on the Ethereum blockchain; and
- Improved support for decentralized finance (DeFi) platforms and DApps are expected to be widely used by crypto enthusiasts and the general public.
In addition to these benefits, it is also likely that Ethereum 2.0 will enable a variety of new use cases that are not possible on the current network, such as:
- Distribute tokens that represent property rights as a method of managing royalties in the music industry;
- Create a decentralized AI (artificial intelligence) ecosystem that will allow users to train and monetize their own machine learning models;
- Facilitate safe and inexpensive cross-border payments;
- Enable supply chain managers to track product delivery without fear of tampering;
- Provide a decentralized platform for gambling and prediction markets; and
- Increased privacy and ability to store large amounts of data, which can be especially useful for storing sensitive information such as medical records and financial data.
Although there is still time before the update is fully rolled out, the benefits it promises to bring are significant and could have a major impact on how businesses and individuals use blockchain technology in the future. the future.
The popularity of the Ethereum platform
The popularity of the blockchain network is expected to increase once Ethereum 2.0 is released.
Ethereum 2.0 will provide increased scalability, security, and efficiency for businesses and individuals looking to take advantage of blockchain technology. Ethereum is currently one of the best-known cryptocurrencies, alongside Bitcoin (BTC), with nearly 4 million wallets actively holding ETH as of February 2022.
The blockchain continues to be where most DeFi and NFT activity takes place, with new DApps and projects launching on the platform every day. According to analysts, Ethereum currently holds 70% of all DeFi transactions in the cryptocurrency market, and its blockchain is used to support the majority of NFT and gaming projects.
The number of transactions on the Ethereum network
The average number of transactions on the Ethereum network is currently 1.1 to 1.5 million transactions per day.
These numbers are expected to increase exponentially after the launch of Ethereum 2.0, as it will allow many more transactions to be processed per day. At the moment, the network can only process 15 transactions per second.
Ethereum 2.0 aims to increase this number exponentially to around 150,000 by the time the upgrades are fully rolled out. If this becomes a reality, Ethereum will undoubtedly become one of the fastest and most scalable blockchains in existence, which should further increase its popularity.
Solving Scalability and High Gas Cost Issues with Ethereum 2.0
Scalability has always been one of Ethereum’s biggest challenges. This is especially true for developers looking to build DApps and DeFi platforms on the blockchain, as transaction costs can be prohibitive.
However, with the launch of Ethereum 2.0 (which introduces a new PoS consensus mechanism and shard chains), it will finally be possible to scale the network in a way that significantly reduces costs and facilitates faster transactions:
Tips and Tricks to Spend Less Gas Fees on Ethereum
There are several ways to reduce or even eliminate these costs when spending gas fees on Ethereum.
- Use wallets that support batching: Batching is a feature offered by some wallets that allows you to consolidate multiple transactions into one, reducing the amount of gas you need to spend.
- Use ERC20 tokens: ERC20 tokens are digital assets that run on the Ethereum blockchain and can be used instead of ETH when paying for gasoline. This is because they often have much lower transaction fees than ETH itself.
- Use a gas price calculator: Gas prices fluctuate frequently, so it’s important to use a gas price calculator to ensure you get the best possible price for your transaction.
- Use a gas tracker: A gas tracker is a tool that allows you to monitor current gas prices on the Ethereum network in real time. This can help you to always be aware of the latest prices.
- Use a Gas Station: A Gas Station is a website that allows you to compare gas prices from different ETH wallets to find the one that best suits your needs.
By following these tips, you can significantly reduce the amount you spend on gas when using Ethereum. This will help make it more affordable to use the network and participate in DeFi and other activities until the full launch of Ethereum 2.0.