Cryptocurrency leader Ethereum is experiencing a stagnant price as it faces a new competitor.
The emergence of Bitcoin Spark (BTCS) and its innovative proof-of-stake mechanism could make it a formidable competitor.
Bitcoin Spark (BTCS)
BTCS is a cross between Proof of Stake and Proof of Work, where the best of both worlds is deployed under the umbrella of Proof of Process (PoP). PoP is a promising consensus mechanism that seeks to balance energy efficiency, security, and decentralization in blockchain networks.
Rewards in a PoP system are calculated algorithmically, focusing on processing power (similar to PoW) but also taking into account stake size (similar to PoS). This dual approach ensures that no single entity can monopolize control of the network, promoting decentralization and security. Furthermore, PoP technology often includes a reward calculator to help validators evaluate profitability before participating in the network’s consensus process.
BTCS’ Proof of Stake (PoS) mechanism could be what Bitcoin needs to thrive, and BTCS is fully deploying this algorithm in its PoW-powered platform. PoS relies on validators to create new blocks and validate transactions based on the number of coins they own and who they want to stake. It provides a secure network through economic incentives. Validators have a stake in the network in the form of their cryptocurrency holdings, making malicious behavior costly. If the auditor acts maliciously, he risks losing part of his stake, aligning his interests with the security and stability of the network.
BTCS integrates the smart contract layer into the Bitcoin Spark network. This multi-layered system aims to achieve end-to-end on the mainnet while allowing for diverse programming languages for application development. The project envisions an ecosystem where users can interact with the network seamlessly, supported by a powerful internal blockchain explorer.
Furthermore, Bitcoin Spark facilitates the rental of additional mining power and advertising opportunities, increasing mining rewards. It is designed to be easy to use, compatible with various operating systems, and provides a simple way for users to adjust processing power usage based on usage requirements.
BTCS is currently running a Phase 6 Initial Coin Offering at $2.75, and BTCS holders are incentivized with an 8% reward offer. The ICO has received a boost with the diversity of investors and whales in the project, demonstrating its prospects. BTCS has conducted an audit of the smart contract and Cognitus Know Your Customer Certification to enhance its security and transparency and verify compliance with regulations.
In 2016, the Ethereum network reached a critical juncture that led to a fundamental shift in its underlying consensus mechanism that saw the Ethereum community create parallel protocols. One fork continued Proof of Work (PoW), while the other continued Proof of Stake (PoS).
Ethereum has undergone a groundbreaking upgrade known as the Ethereum Merge. This massive event marks the complete transition of Ethereum from Proof of Work (PoW) to Proof of Stake (PoS), enhancing the operations of the entire network under the Proof of Stake (PoS) consensus mechanism.
This merger represents a major step forward in the evolution of Ethereum as it bids farewell to the resource-intensive Proof of Work (PoW) protocol and fully embraces the energy-efficient and environmentally friendly Proof of Stake (PoS) mechanism. However, signing on Ethereum requires a strong understanding of the process, technical knowledge, and the ability to maintain a reliable and secure validator node. Furthermore, post-merger successes are yet to be achieved as Ethereum prices struggle.
Ethereum price forecast
Over the past six months, Ethereum peaked at $2,120 in July and fell to a low of $1,549.61 in September. Throughout this year, ETH has largely fluctuated in the range of $1,550 to $2,120. The current market cap is about $191 billion.
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