There is a lot of online chatter about a significant Ethereum upgrade that is imminent that may have an impact on the price of Ether. Many people are concerned that the price of Ether will drop as a result.
Analyzing and discussing the gritty details with logic and haste. Is this merely a blip or cause for concern?
The sharding upgrade, Ethereum’s upcoming significant update, is scheduled for March, or “a month away.” Many people are worried because they believe that the cost of the dump will equal the price of ether. You must have a rudimentary understanding of what this upgrade does.
Over the past two years or so, Ethereum has undergone a significant transformation that has fundamentally altered the way it functions. Transfer of Ethereum from the prove-of-work to the prove-of-state phase. Why does that matter? It is the consensus-based process that the Blockchain employs to guarantee that everyone receives the same copy of their information and to ensure that your transaction is genuine when you enter the chain, essentially enabling the Blockchain to function as intended.
Proof of Work (PoW): The basic point of proof of work is that there are miners mining the bitcoin chain and using their competitive advantage to ensure that the transactions are valid. For doing that, they receive passive income as compensation. Blockchain reimburses them.
Proof of Stake (PoS): You take cryptocurrency and lock it into a note rather than solving riddles to earn money to protect the network. You are betting on the game, and if you play honestly, you will receive a passive income reward; however, if you play dishonestly, your stake will be penalized and you will lose money.
This upgrade is actually happening over time, and as of September 2022, proof of state is completely operational. Ethereum is now proof of state rather than proof of work.
The video below explained in detail how the Ethereum Upgrade Could affect ETH.
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