The technology of blockchain has revolutionized global markets, disrupting finance, trade, and healthcare. Bitcoin introduced the application of blockchain technology, and since then, many other cryptocurrencies have come up. This article focuses on the blockchain with the second-largest market cap, known as Ethereum2, the largest general-purpose blockchain. Another name it is known by is “serenity” or ETH2.0.
What is Ethereum2?
Ethereum2 is an upgraded Ethereum blockchain aimed at increasing the network speed, efficiency, and scalability as it boosts security and makes the network of Ethereum blockchain stable with the ability to process more transactions with ease and at a reduced fee. It is designed explicitly for decentralized apps and smart contracts.
What are the Benefits of Ethereum2 Over Other Blockchains?
1. Unique Concept
Apart from providing peer-to-peer transactions like other cryptocurrencies like Bitcoin, Ethereum2 has a platform that can build smart contracts and distributed applications. This platform is unique and other blockchains do not have. This gives ethereum2 an advantage over other cryptocurrencies because users of smart contracts can exchange anything of value like money, shares, real estate, and so much more.
2. Unique Mining Validation process
Other blockchains can use the proof of work method to validate transactions when it comes to mining, and Ethereum2 can use the same way to mine. Still, the advantage it has over these other blockchains in the case of mining is that it has upgraded to another transaction validation method known as "proof of stake." You can use the proof of stake method to validate transactions in a block based on the number of coins you own. This means that if you have many coins, your mining power will be equally high.
3. It Works Faster
It takes approximately ten minutes for other cryptocurrencies like Bitcoin to add a block to the blockchain. However, with the Ethereum2, you only need between twelve to fifteen seconds to add a block to the blockchain.
4. It Processes More Transactions Than Others
Ethereum2 makes over one million two hundred thousand transactions in a day, while the leader of other blockchains, Bitcoin makes around two hundred and sixty thousand transactions. Ethereum2 has mined over thirteen million blockchains while Bitcoin has mined seven hundred and eighteen thousand coins. This is because it takes less time to add a block to the blockchain in Ethereum2 than for Bitcoin.
How To Buy and Store Ethereum2
You need to note the critical point that you cannot purchase Ethereum2 directly on Coinbase. Follow these steps to buy ETH2 on Coinbase.
1. Creating A CoinBase Account
You must download the Coinbase App and sign up. To sign up, you must have a valid ID, and you may also be asked for proof of address to transact. Once verification of your identification card is done, move to the next step. Use this link to open Coinbase account https://coinbase.com/join/bakome_8?src=ios-link
2. Adding A Payment Method
You add a payment method by tapping the payment method box and choosing the most convenient way you would like to transact. You can choose the options of a bank account, debit or credit card, or wire transfer.
3. Starting A Trade
Start a trade by simply clicking on the “buy” option from the list in the Coinbase application.
4. Selecting Ethereum from The Assets List
When you open the search bar, type in the word 'Ethereum'. double click for it to open the screen where the purchases are made.
5. Enter Amount to Purchase
Enter the amount you wish to use to purchase. This amount must be in your local currency using the number pad. The app will convert the amount into an Ethereum balance.
6. Staking
You will need to stake your Ethereum so that you can get Ethereum2. On the Ethereum asset page, you will follow the prompts under your portfolio and covert the ETH to ETH2, then start staking. According to Analytics Insight, Ethereum2 is known as the best coin for staking.
What Other Wallets can store Ethereum2?
The following are other wallets that can be used to store ethereum2.
1. Coinbase wallet- can be utilized to make purchases, transfers, and sell digital currencies. It stores Ethereum in an offline storage https://coinbase.com/join/bakome_8?src=ios-link
2. ZenCo wallet- this is a keyless Ethereum2 wallet, which makes it simple and secure.
3. Binance-the best platform for ethereum2 wallet. It trades in over one hundred and fifty cryptocurrencies.
What Are the Use Cases for Ethereum2?
1. For DeFi
Ethereum2 has been used in the decentralization of Finance applications. This means that contract-powered loans exist, decentralized exchanges, and stable coin minting.
2. Ethereum2 is used as a digital identity
This is because of its ability to verify data transparently and openly. One of the companies that have embraced this digital identity is a company called Civic. The government can now check the authenticity of digital identifiers by using Ethereum2.
3. Healthcare application
Ethereum2 has revolutionized the health care system by enabling data sharing among hospitals where patient records can be shared quickly. The ease of sharing patient information is vital in developing vaccines during the outbreak of a virus.
What is The Future of Ethereum2? The future of Ethereum 2.0 looks very bright. There are many improvements that have been made to the platform, and this is sure to attract more users in the future. Some of the key features that are included in Ethereum 2.0 include Sharding, Plasma, and Casper FFG. These features will make the platform more efficient and secure, which is what users are looking for in a platform.
Final Take Away Simply put, Ethereum2 is a platform that allows for the development of decentralized applications. This means that developers can create applications that don’t rely on a third party to function. Instead, these apps run on a blockchain network and are powered by smart contracts. Since Ethereum2 is still in its early stages of development, there’s plenty of opportunity for innovation in the years to come. Keep an eye on the developments of Ethereum2 and find out how you can get involved.
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