The world’s second-largest cryptocurrency by market cap jumped 27.51% in seven days amid testing of its latest master code update. The London Upgrade, or London Fork, is an Ethereum code upgrade to add a deflationary mechanism to the cryptocurrency and adjust and control transaction fees. The Ethereum network witnessed the first test rollout of its upgrade in London on Ropsten’s testnet on June 24.
Ethereum will likely rise due to the hype and speculation surrounding the London upgrade event.
Ultimately, the development team behind the cryptocurrency hopes to fix its flaws and create Ethereum 2.0.
This new version of Ethereum will be more scalable, secure and sustainable than the original cryptocurrency.
The creation of Ethereum 2.0 is going to be gradual, and the London Hard Fork upgrade is one of the stepping stones in the renewal of the Ethereum blockchain and protocol.
Ethereum will eventually switch to the less energy-consuming Proof of Stake consensus mechanism.
In the world of cryptocurrencies, control of the blockchain is proportional to the number of economic resources that have been invested in the network.
In Proof of Stake, where Ethereum is improving, these resources involve staking amounts of Ethereum.
In proof of work, which Bitcoin and Ethereum currently rely on to verify transactions, this control is based on how much processing power a miner can bring to the network.
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DeFi refers to financial services built on a blockchain, like the Ethereum network, which allows anyone to access financial products and services online in a decentralized and borderless manner.
Last month, a leaked Goldman Sachs report stated that Ethereum, due to its importance to DeFi, will dominate to become the most common cryptocurrency in the near future.
The leaked Goldman Sachs report said Ethereum had a “high chance” of overtaking bitcoin as the “dominant” store of value.
The report called Ethereum the “Information Amazon.”
Express.co.uk does not provide financial advice.
The journalist who worked on this article does not own any cryptocurrency.