Cryptocurrency advocate and billionaire investor Mark Cuban shared his thoughts for the leading altcoin Ethereum (ETH) and said that he was quite excited with the new development in the network. Here are the details of Cuban’s comments, known to have ETH…
Mark Cuban drew attention to the update for the leading altcoin ETH
Billionaire investor Mark Cuban announced that he is enthusiastic about the upcoming Ethereum 2.0 upgrade. Speaking to Fortune, Cuban drew attention to the importance of the world’s most widely used blockchain, which adopts the proof-of-stake (PoS) algorithm model instead of the proof-of-work (PoW) consensus. According to Cuban, the current PoW has a few drawbacks, notably the fact that Ethereum miners rely heavily on solving complex mathematical puzzles before new ETH is produced. As we reported as
Kriptokoin.com, the PoW model has been under scrutiny recently due to the large amount of energy used by the activity, which has been under scrutiny by governments in different countries, including Sweden, Norway, and China. caused a great deal of restraint. Environmental activities have also been criticized for the negative impact of cryptocurrency miners’ operations on the global climate.
PoS fixes PoW woes
However, with the upcoming upgrade to the PoS chain, Cuban said these issues will end as investors will need to verify transactions based on the number of ETH they have staked or contributed. The number of staked ETH each user has can determine the probability of being selected to validate transactions. According to Cuban, this method of verifying transactions will result in less Ethereum being issued once the upgrade is complete.
Cuban also stated that as only a few ETHs will be mined, the circulating supply of Ethereum will be greatly reduced, which will definitely depend on the number of coins staked. “Following the merger, it is estimated that the amount of ETH issued will drop by 90 percent, and similar fees will reduce the supply of Ether by up to 5 percent per year,” blockchain analytics firm IntoTheBlock said in a news release. Notably, Cuban does not invest in the Ethereum PoS chain, but is known to hold substantial amounts of ETH and has money in some projects currently being built on the Ethereum Blockchain.
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