Everyone knows Ethereum 2.0 is just around the corner. The launch of Ethereum 2.0 would mean mass adoption for Ethereum and a risk to decentralisation according to some.
The CXO of Rivet Greg Lang spoke in a conference about Ethereum 2.0. In the conference they discussed the challenges and the opportunities of the update.
Proof of Stake is going to change everything
Proof of stake is the new algorithm for Ethereum which is coming in the update. While Proof of Work is very capital intensive, POS does the same work with less. PoS will bring the consensus power back in the hands of more individuals.
More individuals involved in the consensus program the better security it has. Bankless Founder David Hoffman at the conference said that sharding will bring it to scale. Sharding would help in carrying out transactions with cheaper fees.
Centralization at risk
The success of Ethereum was based on its uses in DeFi and NFTs. Two areas specifically designed with decentralization in mind. However, many analysts while talking about downsides said centralisation may be at risk.
This is a concern shown because the new system might cause a power imbalance. The power may get consolidated between a few people who hold most ETH. This will cause a lot of problems. It would also essentially mean that the currency would become centralized.
The USP of cryptos and especially Ethereum has always been their decentralisation.