Bank of America: Ethereum needs scalability improvements to maintain its market position.

[Bank of America: Ethereum needs scalability improvements to maintain its market position] Golden Finance News, Bank of America said in a research report that the Ethereum blockchain has evolved from a proof-of-work (PoW) consensus mechanism to a proof-of-stake (PoS) consensus mechanism. ) shift seems imminent as it needs scalability improvements to maintain its market position. The bank stated that without scalability improvements, Ethereum is unlikely to continue as the main blockchain operating system, saying: “PoS reduces Ethereum’s energy consumption by more than 99%, lowering the stakes for investors as the network Barriers to entry for validators to generate revenue and change the supply and demand dynamics of ETH.”

Analysts also pointed out that newer blockchains such as Binance Smart Chain (BSC), Tron, Avalanche and Solana have taken market share from Ethereum due to their PoS consensus mechanism, greater scalability and lower transaction fees . These functional advantages “may become key as decentralized applications emerge in the Web3 ecosystem,” the bank added. (Coindesk)

Other news:

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