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There are several reasons why Ethereum needs to change the consensus level. Low throughput. With the rise in popularity, the blockchain has faced increasing challenges. Now it is a huge ecosystem with tens of thousands of projects, the volume of transactions has exceeded a trillion, the network is used by most DeFi projects and stablecoins. But at the same time, the throughput of Ethereum remains at the level of 15 transactions per second (transactions per second, TPS). Because of this, Ethereum has had problems more than once, one of the first wake-up calls was when the network could not stand the test of popularity and lay down due to the Crypto Kitties game in 2017. PoS can greatly scale the network, increasing TPS hundreds of thousands of times (about 100,000 TPS). If you want to trade cryptos safely and with the lowest fees try redot.com High price and low transaction speed. Ethereum has experienced a significant increase in trading volumes, which, due to insufficient bandwidth, puts a serious strain on the network. From this, absurd situations happen when transferring ETH worth a few dollars requires you to pay commissions of more than $40 or even $60, depending on the workload of the miners. There is also the MEV problem, when miners rearrange transactions in a block as they please in order to increase their fee income. Firstly, it is dishonest and secondly, it slows down the network. The Proof-of-Work mechanism is very energy intensive. On average, it would take 282,394 trillion tries to find a hash that is 64 characters long, which costs about 121.36 terawatt hours (TWh) per year. But these calculations have no scientific or any other value other than protecting the network. At the same time, PoS will reduce electricity consumption by 99.9%, making it much more environmentally friendly. It does not require special expensive equipment, it will be enough for validators to stake 32 ETH to be able to validate transactions, issue blocks and coins. Inflation vs Deflation ETH. The transition will fundamentally change the Ethereum tokenomics and slow down the annual inflation rate to below 1%. Thus, ETH will become an asset with a function of accumulation of value, due to the redistribution of combustion and emission mechanisms. The emission of ETH will fall by 90%. The danger of a 51% attack and other PoW vulnerabilities. In theory, if a node gets 51% of the network's total mining power, it can change the network at will. To carry out such an attack in PoS, significant funds are required (51% of all coins), which makes it impractical. If a hacker has a lot of tokens, then it is unprofitable for him to attack, as he will collapse the course and lose his money.

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Posted By Redot / April 18, 2024

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