Thinking About Buying Shiba Inu? Buy Ethereum Instead
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Loading... - Helmi Salonen
- 07 Oct 2022
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After watching Shiba Inu soar more than 45,000,000% last year, you might want to get in on the action -- especially since the popular meme token has a couple of catalysts ahead: development of its metaverse and the launch of a scaling solution. But Shiba Inu's limited uses don't help it stand out among rivals. And that means there may be a better long-term option out there for you.
There's one that already has proven itself in the world of decentralized applications (dApps) and non-fungible tokens (NFTs), for example. It also just made a transformation that should make it an even stronger player. I'm talking about Ethereum (ETH -0.05%).
The switch to proof of stake
Ethereum completed "The Merge" on Sept. 15. This event was a switch to the proof-of-stake method of validating transactions from proof of work.
Proof of stake gives validation power to those who hold a big stake in the cryptocurrency. This method cut the blockchain's energy use by 99%. Proof of work uses enormous amounts of energy because it requires complex computations before a block of data can be validated.
The Merge also may have contributed to a decrease in the time it takes to create blocks of data -- and to increases in blocks created per day and transactions per day.
This clearly makes Ethereum a more competitive platform. But there's more.
The Merge was actually part of a much broader general update. This update is meant to solve Ethereum's biggest problems: slow transaction speed and high transaction costs. The above chart shows Ethereum making progress on the former.
But the introduction of sharding -- which is set for next year -- should truly solve the speed and cost problems. Sharding splits up the database horizontally to relieve network congestion. As a result, transactions can move through more quickly. And that means they also cost less to complete. Read More...
