What are the benefits of the triple halving of Ethereum?
The concept of halving was introduced with Bitcoin. After every four years, Bitcoin halving takes place. Bitcoin continues to rule the cryptocurrency charts and is one of the favorite investment assets, but Ethereum is also garnering a lot of attention. Ethereum being a cryptocurrency and the Blockchain platform for the development of applications and smart contracts has garnered a lot of attention and focus. Well, the recent trend that most of the Blockchain community are discussing is Ethereum triple halving. Let’s unfold a few details about the same.
What is the triple halving of Ethereum?
Nikhil Shamapant introduced the triple Halving concept. This concept includes His EIP-1559 and Proof of Stake. EIP-1559 includes burning fees on every transaction. This is certainly going to create a supply shock. EIP-1559 is a proposition to make Ethereum transactions to be more energy-efficient. It means that the mining process of Ethereum will consume less energy, and the hybrid system of base fees and tips will be more incentivizing during the period of high and low network congestion. This brings us to the next most important aspect that many Blockchain developers are talking about, it is Proof-of-stake mechanics. Presently Ethereum works on the Proof-of-Work mechanism, but soon it is going to shift to Proof-of-Stake.
Nikhil mentioned that a few of the events of Ethereum could be interpreted as Halving, though there is no finite supply of Ethereum. Also, there is no guarantee that halving of Ethereum will take place. Well, what is grabbing the attention as of now is the shifting of Ethereum from Proof-of-Work to Proof-of-Stake. So, what does that mean? It simply shows Proof-of-Work, which requires the miners to put a lot of resources in use and use a lot of electricity; all this will shift to Proof-of-stake, which is far more energy-efficient and inexpensive. However, in the case of Proof-of-stake, the miners have to put some of their ethers at stake, and they get rewarded.
Proof-of-stake could be a game-changer in the market. It is going to introduce a new way of mining that will not only be cost-effective, allowing more people to participate in the process, but at the same time, it will ensure that it doesn’t impact the environment. Since the proof-of-stake doesn’t consume much energy compared to proof-of-work, it will put less pressure on the environment.
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