Saturday, April 10, 2021

Ethereum Developer Shows How ETH 2.0’s PoS Would Save ETH Holders Tens of Billions per Year

Ryan Berckmans, an Ethereum developer, who is the creator of the Prediction Global, has some hours ago highlighted how proof-of-stake (PoS) of Ethereum 2.0 would save ETH holders tens of billions of dollars on a yearly basis.

The Ethereum community is in the anticipation of the official rollout of ETH 2.0, the major overhauling of the Ethereum network, which is expected to upgrade the network from the proof-of-work (PoW) to proof-of-stake (PoS) consensus mechanism.

Read Also: New EIP to Suppress Tension between Ethereum Developers and Miners Over EIP-1559 Emerges

PoS is expected to completely replace miners with stake pool validators, which will drastically reduce the energy consumption on the Ethereum network, hence a major decrease in gas fees.

So, the goodies that are coming with the major upgrade, especially for the ETH holders that have been managing the cost of using the Ethereum network, make it arguably the most anticipated development in the blockchain and cryptocurrency ecosystems.

How Proof-of-Stake Would Save ETH Holders Tens of Billions of Dollars per Year

According to Ryan Berckmans in a tweet a few hours ago, Ethereum 2.0 is capable of saving ETH holders tens of billions every year.

Captioning a chart for illustration, the Ethereum developer pointed out that if PoS has been in play on the Ethereum network, it would have saved ETH holders a whopping $3.6 billion already in the first quarter of 2021. He stated further that PoS validators operate with little or no cost for users, unlike miners.

Read Also: Vitalik Buterin Highlights the Benefits of Ethereum 2.0’s Implementation

Ryan Berckmans tweeted, “Proof of stake saves ETH holders tens of billions per year. In the first quarter of 2021, proof of stake would have saved ETH holders $3.6b. How? Proof of stake validators are so cheap that they’re effectively free. Here’s a chart showing the $3.6b from the first quarter.”

Read Also: Ryan Watkins of Messari: Ethereum Would Replace Bitcoin As Go-to Asset after ETH 2.0 Is Rolled Out

Ethereum 2.0 Would Launch Earlier Than Expected

A few weeks ago, when the threat of a possible 51% attack of miners on the Ethereum network was becoming critical, Vitalik Buterin, the co-creator of the top blockchain project, hinted at a possibility of rolling out Ethereum 2.0 earlier than expected.

The miners’ threat of enforcing a 51% attack on the network is meant to block the implementation of the Ethereum Improvement Proposal known as EIP-1559, which resulted in a plan by developers to mitigate their potential threat.

In a blog post, Buterin stated that “The goal of this document is to describe a mechanism by which a merge can happen quickly, with little modification to either the ethpow or beacon clients.”

Read Also: Ethereum Developer Shows That the Benefits of EIP-1559 and PoS Are Yet To Price into ETH

Also, on 12th March 2021, a blog post published on Status says that “Like clockwork, the Ethereum community has quickly organized potential solutions to this possible 51% attack, with Vitalik leading the charge. Vitalik describes how Ethereum can perform a ‘quick merge’ by rapidly moving from proof-of-work to proof-of-stake with limited changes required to Ethereum clients.”

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Solomon Odunayo
Solomon has a growing passion for writing, this propelled him to keenly work on Eagles News Media for about two years before delving into the cryptocurrency and Blockchain industry he finds more interesting. He worked as a crypto Journalist and Editor at NewsLogical before joining Herald Sheets, owing to the priceless experience he has accumulated since he became a contributor in the crypto community.

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