There has been a lot of news about Metropolis update. Before diving into Metropolis, let’s see the main problems faced by Ethereum.
Scalability
- Like any other blockchain technology scaling is an issue to Ethereum network. At
the moment, Ethereum can handle about ~13 transactions per
second. This is very low compared to ~1,600 transactions
per second by Visa.
Complexity
- Network by design provides complex features. Ethereum provides smart contracts.
Smart contracts are pieces of code run by Ethereum network. Unlike a ‘real
world’ legal contract a smart contract does not have to be upheld by anyone,
it’s a set of instructions that self-executes. - The network is allowing things that live on top to be much simpler and much
flexible the network targets a more complex problem itself. Complexity is an
enemy for scalability and bugs are inevitable.
Ethereum team making significant technology advancements to overcome Ethereum
network problems. One such advancement is Metropolis.
Metropolis features
Moving from Proof of work(PoW)** to Proof of stake(**PoS)
In PoW machines are asked to solve mathematical problems to create valid
transactions in the network. Whereas in PoS is about validating where you trust
the chain with the highest collateral.
In PoW attacker would need more computational power in value than you can be
able to steal. In PoS if a hacker would like to buy 51% of coins, what is the
point in attacking the network? Yes, PoS in Ethereum is
safer.
Dash also uses PoS.
Therefore it is:
Cheaper to mine Ethereum
Faster transactions
Increase anonymity
Ethereum is bringing zero-knowledge proof technology. They are used by Zee
cash and Z
coin.
What it does is it hides transactions and gives a little bit more privacy and
anonymity. Therefore it will:
Attracts financial institutions, private equity firms by letting them not
to give away their positions revealed to the public
Revert a transaction ability
Ability to cancel (or revert) a transaction. You don’t have to spend double on
gas to revert. Therefore it is:
Great for ICOs, if they wanted to cancel transaction they can do it efficiently
Other improvements
Few main improvements include increased security for accounts and improved
syncing with light clients.
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Phani
Fintech and Blockchain Entrepreneur
ByBitApp
It’s all about crypto and microtransactions