[Crypto] Advantages of Upgrading Ethereum 2.0

Ethereum is a popular crypto asset such as Bitcoin. The good news is that this crypto asset 1 will be upgraded to Ethereum version 2.0, Ethereum Upgrade itself is on the Proof-Of-Stake model update that will provide an advantage for ethereum (ETH) asset owners. Stacking models can receive passive income for the purpose of transaction validation.

The upgrade to Ethereum 2.0 was already Updated in December. Before discussing further Ethereum 2.0 it would be nice to learn what is Proof-of-Stake and Ethereum Advantages that are subject to change to Ethereum 2.0 ?

Things to Discuss in this Articles :

What is Proof-of-Stake and Staking Models?
Why Does Ethereum 2.0 Use PoS? Advantages and Risks of Staking

Proof of Stake and Staking Model

What is Proof of Stake? Proof-of-Stake or PoS is a consensus technical mechanism used by specialized blockchains. For those who have a token stock can be granted a network, a right to be rewarded for validating the block.

Proof-of-Stake is different from Proof-of-Work (POW) found in Bitcoin only. The difference is that POWs provide block confirmation rights only for the person displaying the largest computing power.

Another advantage of using PoS is Staking. Staking requires miners to store a certain amount of Ether or ETH for short. Then in order for the blockchain to run, miners are required to risk ETH to get in return. When the System Validator approves risking the ETH token, the Token is automatically locked.

One thing to note is that there are terms for users to risk their tokens to validate blocks and get rewarded or replaced.

Why Ethereum 2.0 Uses PoS

Why does Ethereum implement PoS ? because Ethereum wants to decentralize and speed up the network is also one of their main reasons also because PoS is considered more energy efficient when compared to PoW.

Since the beginning of the two largest cryptocurrencies ETH and BTC do depend on several large mining pools. This factor is due to the development of mining hardware is the same - equally faster and more sophisticated.

Read : [Crypto] What is USDT? Definition Stablecoin

Advantages and Disadvantages of Staking System.

Advantage

This is the advantage of the staking system. Info from the Coinvestment Forum, Proof of Stake is a way that validators don't have to rely on very different computing systems.

The reason is because the factor that can affect the profit chances is from the number of coins.

Another obvious advantage is the opportunity to earn revenue called CoinTelegraph. From there staking gives users the opportunity to participate in other blockchain projects.

Loss/Disadvantages

Losses and risks can also be analyzed using pos system. By risking the token then have to lock crypto assets within a certain period of time. In a sense if the price falls will not be able to save crypto from the betting system. In other words it will not be able to sell and reduce any losses.

Another disadvantage is the complex sangarlt model reported from Blockchainmedia. Like a staker who does not do research on this model, it could be the occurrence of private key theft and fatal errors during the transfer process.

Read : Top 5 Bitcoin Community Forum

So many explanations about Ethereum 2.0 using Proof-of-Stake (PoS) system and any Advantages and Disadvantages when using PoS System.