Could Ethereum’s First Mover Advantage Consolidate Its Dominance in the Smart Contract Space? – Blockchain news, opinion, TV and jobs

Ethereum has become one of the most widespread crypto blockchains today, and the upgrade, also known as the ‘merger’, will shift the blockchain from a proof-of-work-agreement method to a more efficient, more secure and less energy-intensive proof-of-benefit method. The method will be better to implement new size solutions.

The update is very important now, because it can support the growing number of Ethereum users. It is intended to solve problems like slow speed and high fees. So it makes sense to make this transition sooner rather than later. But unfortunately it is not that simple.

What is a hard bomb?

In a proof-of-work scheme, miners must solve complex mathematical problems to earn rewards. The problem bomb, which is a special code that has always been a part of Ethereum, increases the difficulty of the mining computer, eventually making it impossible to do it. When this so-called ‘bomb’ goes down the road, it will be an indication that the day of the so-called merger is over, and eventually the balance sheet will reach a point where problems are impossible. Solving. Miners lose their profits when they try to mine.

It only makes sense that miners will eventually abandon the proof-of-concept model and move to a proof-of-stake method. But before all that happens, Ethereum developers must all agree that enough testing has been done for the integration to unfold smoothly. But so far this has not happened and the difficult bomb has been delayed, not for the first time, but now for the fifth time. More testing is still needed to ensure a smooth transition around September 15, 2022.

Experts believe that the successful implementation of the merger could be one of the greatest achievements in the history of cryptography. Smooth transition transforms one of the most widely used blockchains into a network capable of supporting many applications in the crypto world with a smoother running and affordable price.

But if Ethereum developers can’t do this soon, it could mean trouble going forward. In the long run, other smart contract blockchains like Solana, Avalanche, or Cardano may be the first to capture market share.

Testnet of Sepolia

But the good news is that the Penultimate Test Environment Network (Sepolia Testnet) has successfully completed its two-stage process. This testnet integration brings the project one step closer to upgrading to the Ethereum mainnet later this year.

Currently, Ethereum has increased by approximately 5.15% since yesterday, and the media speculates that this may be due to the successful completion and the upcoming ‘merger’.

Chris Terry, BPSAA Board Member and VP Enterprise Solutions at SmartFi, a US-based open lending platform, wants to share his thoughts on the matter;

“The bad news is that the developers of Ethereum pushed back the difficult bomb, a necessary step for the planned merger at the end of the year. The good news is that they managed to run the Sepolia testnet. Ethereum’s update shows how difficult this business is now years later. Every day that passes, the likes of Cardano, Solana, Avalanche And it will open the door for other projects. But, like Bitcoin, Ethereum has a first-mover advantage, and it’s still a big one. If Ethereum can finally achieve proof of stake, it will without question solidify its dominance in the smart contract space. But they’d better move fast.

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