(This is Part 3 of a 3-part series. Click here to view Part 2 if you missed it.)
Mitigating Tail Risk
The transition to a Proof of Stake (PoS) consensus will also be very important in terms of mitigating tail risk. Tail risk is the chance of a loss occurring due to a rare event, as forecasted by a probability distribution. While the average user might not fully grasp this concept, PoS offers more beneficial properties than Proof of Work (PoW) in terms of risk. With the former option, blocks are final and are not liable to change. Therefore, PoS mitigates tail risk. META 1’s Delegated Proof of Stake (DPoS) protocol provides even stronger mitigation of tail risk with its more robust vote-based staking.
Changing User Experiences
Ethereum will likely exist in an even safer, more scalable, and more sustainable environment one or two years from now. This will result not only in increased capacity, but also lower fees – assuming demand remains consistent or increases. Users will likely witness the popularity of specific (liquid) bond tokens associated with the rise of Ethereum 2.0. These tokens transform illiquid Ethereum into a liquid, tradable asset and make it easy for stakeholders to take part in fostering trust in the network.
ETH 2.0 in 2021
Global adoption of Ethereum increased by 35,300% before the launch of the Beacon Chain. In 2021, all signs indicate adoption will continue to rise. Shard chains will expand the capacity of Ethereum to store data and process transactions.
What Will Sharding Bring?
As noted previously, Sharding will dramatically improve efficiency. Once the database is split horizontally to distribute the load, there will be noticeable performance improvements. This major upgrade, planned in 2021, aims to improve the Ethereum’s scalability and capacity. It will transpire in several phases. The shards will acquire an additional number of features with every phase completed.
By keeping hardware requirements low, shard chains will make running nodes easier. Sharding will increase transactions per second and reduce network congestion. It is a far better approach to scaling compared to increasing the current database’s size.
Increasing the existing database size would diminish accessibility to Ethereum for network validators because more expensive and more powerful computers would be needed. With sharding, validators will no longer need to run and store data for the whole network – only a particular shard will be validated. This reduces hardware requirements dramatically and speeds the process up. With META 1’s DPoS consensus, there is built-in efficiency and scalability that enables NASDAQ-level and speed of transactions as well.
Augmented Network Participation
Eventually, sharding will make it possible to run Ethereum on a phone or laptop. More users will be able to run client systems in a sharded system. Sharding will also make the system more secure because the potential attack surface area is smaller in a decentralized network. Due to lower hardware requirements, users will not be dependent on services from mediators. By running multiple clients, points of failure will be reduced further, facilitating network health and accessibility.
META 1’s private exchange and hard wallets, combined with the DPoS system also provide powerful decentralization, efficiency, environmental sustainability and security. Ethereum 2.0 promises to be an exciting advancement in the world of crypto. Thankfully, META Exchange began with advanced systems in place and won’t need these enhancements to achieve these benefits. META 1’s restriction on non-human entities will ensure that META 1 Coin remains in the hands of Humans, and our unique smart contracts will facilitate greater growth and stability in coin values. The fixed supply of META 1 Coins will also enable greater potential for growth, unlike the unlimited supply of Ethereum’s digital coins. META 1’s unique technological advantage will serve to increase the abundance and freedom of Humanity during this time of unprecedented crypto growth.