As Ethereum reinvents itself, large enterprises start to get on board

Investors are pouring a lot of money flow into bitcoin, but participants in the cryptocurrency market may be missing the real story: Ethereum is about to reinvent itself, and the impact could have far-reaching consequences throughout the enterprise world.

Released in 2015, Ethereum has grown to become the second-largest cryptocurrency by market capitalization. It differs from bitcoin in that it powers an increasingly popular smart contract system and facilitates the building of decentralized applications or DApps on the blockchain which appeals to developers. A recent report by Electric Capital found that Ethereum leads all cryptocurrencies in the number of active developers, with four times as many per month as bitcoin.

Despite predictions by a number of financial technology participants that it would overtake bitcoin, Ethereum has yet to live up to its promise. It has been plagued by issues of scalability, security and performance while its overall value has lagged far behind the premier cryptocurrency.

However, the Ethereum community has been working to introduce the first key phase of Ethereum 2.0 by early next year, a new version designed to reshape the protocol dramatically and resolve a number of its issues. An update on the current status of this highly anticipated rollout and an overview on the state of Ethereum was provided at the BuildETH gathering of developers, entrepreneurs and stakeholders in San Francisco on Friday.

It was less an attempt to sugarcoat the obvious and more about a realistic assessment of the hard work that lies ahead.

“Ethereum is still a very immature platform,” said Grant Hummer, co-founder of Chromatic Capital. “It’s pretty clear to me that we have a long way to go when it comes to mainstream user adoption. But I’m massively optimistic about Ethereum in the long term.”

Move to proof-of-stake

Ethereum 2.0 could go a long way toward resolving concerns about user adoption. The platform will move to the Casper…

Source Link