On June 24th, the London update was launched, and Ethereum is about to launch the official version of Ethereum 2.0. As the king of the public chain of blockchain, Ethereum’s market value and trading volume are far higher than other public chains, firmly holding the position of “big brother” of the public chain. So why bother making the transition to Ethereum 2.0?

The first is demand and trend: as a platform carrying users and applications, the value nature of public chain applies to users and applications. As more and more users understand the use of blockchain technology, people’s requirements for technology and applications are becoming higher and higher.

With the prosperity of the Internet, users’ need for privacy protection is more and more intense, and they are accustomed to carrying out activities in such a secret state. As a result, users of new Internet applications are demanding higher and higher levels of security, transparency and privacy.

Financial applications are fundamental to and contribute to the prosperity of the Ethereum, but too much openness and transparency in the blockchain world will impose important constraints on financial development and make users hesitate. This is also an important factor restricting the development of Ethereum.

The second is the proliferation of similar public chains: public chains, which play an infrastructure role in the blockchain industry, have always been the most competitive side in the industry. It used to be thought that Ethereum had formed its own ecological barrier, and that other public chains with similar functions and positioning could hardly pose a serious threat to Ethereum.

These days, this type of chain is starting to grow explosively, gaining a lot of traffic and users, posing an initial and significant threat to Ethereum.

Why do these public chains threaten Ethereum? It boils down to nothing more than: low fees, can meet the needs of many small capital users; The infrastructure is relatively mature; They can eat up “natural” user bonuses and financial support; These are further “reminders” that Ethereum needs to move into ETH2.0 as soon as possible to address network congestion, improve efficiency, and reduce costs in order to hold on to its throne.

The third is Ethereum itself: Ethereum has long been criticized for its inefficiency and high exchange rate. So if Ethereum wants to solve the problem more thoroughly, it has to solve it at the root. That is, to improve and solve this problem from within the Ethereum public chain. As a result, Ethereum’s upgrade is an external and internal need, with a variety of rigid incremental demands accelerating its pace.

The POS proof upgrade for Ethereum 2.0 evolution now has some drawbacks:

The threshold to participate in the pledge is too high, 32 ETH; The locking time is irreversible. The exact time will depend on the development of ETH2.0. For miners, there are relatively large risks and shortfalls, which will lead to insufficient liquidity. In the operation stage before ETH 2.0, all aspects of the technology are unstable, there may be some loopholes, there are certain technical risks and losses, which has also happened before; Compared to other POS algorithms, ETH2.0 has a low return.

To sum up, since ETH 1.0 and ETH 2.0 are in parallel, the time is uncertain and unpredictable, so what is your view on the transition of Ethereum Update 2.0? Wait and see or get involved right away?

If you want to wait and see for a while, you may want to consider IPFS/Filecoin, which is also the POS algorithm. The perfect running technology is mature, and the application is gradually being launched. Although with the currency circle fell sharply and entered the callback stage, but most of the people who are about to enter the market also had a positive impact.

Due to the different mechanisms, participating in IPFS/Filecoin requires a lot of collateral, so at today’s currency prices, entry can save a lot of collateral costs. Now the only project that is not hit in the country, the calculation power is also growing steadily under the horizontal condition, and a large number of miners are running into the field. Even if the current currency price is the case, there will be 3 times the return, and if the currency price rises, the return will be more. The whole FIL project is in the development stage. Until the project takes shape, the value of FIL coins will continue to rise, rather than fluctuating or depreciating.