PoS gives Ethereum the economic structure to overtake Bitcoin, says DeFi researcher
Researcher Vivek Raman said that after the merger, ETH's inflation will be lower, security will be better, and the 'ETH will position itself as a digital bond.
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As Ethereum transitions to proof-of-stake (PoS), a decentralized finance (DeFi) researcher has argued that the platform can overtake the throne of Bitcoin (BTC) as crypto's top dog .
In a Twitter thread, researcher Vivek Raman pointed out that the upcoming Ethereum merger could create a better economic structure for the smart contract platform. According to Raman, the move to PoS reduces Ether (ETH) inflation, provides better security, and positions crypto as a digital bond.
Raman said that after the merger, ETH inflation will drop from 4.3% to 0.22%. The researcher explained that this gives the ecosystem a 95% reduction in emissions, limiting the amount of ETH that can be sold in a day.
Besides, the researcher also explained that the platform will work with better security after the merger. Citing an article by Ethereum co-founder Vitalik Buterin, Raman pointed out that it will cost more to attack the network once it is running on PoS.
Apart from that, Raman also believes that the Ethereum merger will allow ETH to complement Bitcoin's use cases as a store of value and collateral asset. While BTC will function as digital gold, Raman argues that ETH will position itself as a digital bond and the primary DeFi asset used as collateral.
Researcher Vivek Raman said that after the merger, ETH's inflation will be lower, security will be better, and the 'ETH will position itself as a digital bond.
New
As Ethereum transitions to proof-of-stake (PoS), a decentralized finance (DeFi) researcher has argued that the platform can overtake the throne of Bitcoin (BTC) as crypto's top dog .
In a Twitter thread, researcher Vivek Raman pointed out that the upcoming Ethereum merger could create a better economic structure for the smart contract platform. According to Raman, the move to PoS reduces Ether (ETH) inflation, provides better security, and positions crypto as a digital bond.
Raman said that after the merger, ETH inflation will drop from 4.3% to 0.22%. The researcher explained that this gives the ecosystem a 95% reduction in emissions, limiting the amount of ETH that can be sold in a day.
Besides, the researcher also explained that the platform will work with better security after the merger. Citing an article by Ethereum co-founder Vitalik Buterin, Raman pointed out that it will cost more to attack the network once it is running on PoS.
Apart from that, Raman also believes that the Ethereum merger will allow ETH to complement Bitcoin's use cases as a store of value and collateral asset. While BTC will function as digital gold, Raman argues that ETH will position itself as a digital bond and the primary DeFi asset used as collateral.
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