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.
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.
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.”
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 pic.twitter.com/5FOLFrXYof
— Ryan Berckmans (@RyanBerckmans) April 2, 2021
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.”
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.”