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The Future Role of Ethereum in Multi-Chain Technology

4 24 10

Ethereum is one of the top cryptocurrencies, just behind Bitcoin in terms of market cap and overall popularity. Despite the recent bear market, it has kept itself relatively stable compared to altcoins. The ETH roadmap of the next few years is particularly exciting and promises to be a paradigm shift in the way we conceptualize cryptocurrency.

“The Merge,” or as it was known before, ETH 2.0, will transform Ethereum to a Proof of Stake (PoS) consensus mechanism from a Proof of Work (PoW) consensus mechanism. The energy-intensive mining that currently exists under PoW will be replaced by a sustainable staking system under which ETH holders can stake their tokens to become a validator and ensure the blockchain’s security, while earning rewards for themselves.

Multi-chain is a concept. It refers to a system or general state of the crypto sector that allows for more than one blockchain to exist at the same time. At a basic level, it works with the concept of bridging, where a bridge connects two different chains at a time. When transferring assets from one chain to another, the asset is minted on the target chain, and the wrapped version on the old chain is burnt. The reverse occurs when the asset is released to the original chain — a process known as “redeeming.”

One of the most exciting features of multi-chain........

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