Proof of Pledge (PoS) Provides Ethereum With The Economic Structure Needed To Leap The Bitcoin Network By DeFi Expert

As Ethereum translates to Proof of Bet (PoS), a decentralized finance researcher (DeFi) that the platform can replace the Bitcoin (BTC) network as a key player in the crypto industry.

In a Twitter thread, researcher Vivek Raman said emphasis 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 inflation (ETH), provides better security, and stands for cryptocurrency as a digital bond.

Yes Raman declared after the merger, ETH inflation drops from 4.3% to 0.22%. The researcher explained that this provides a 95% reduction in emissions to the ecosystem, which limits the number of ETHs that can be sold per day.

In addition, the researcher also explained that the platform would work with better security after the merger. Citing a post by Ethereum co – founder Vitalik Buterin, Raman suggested that it would be more expensive to attack the network while running on PoS.

In addition, Raman also believes that the Ethereum merger will enable ETH to complete bitcoin use cases as a store of value and collateral asset. While BTC will act as digital gold, Raman argues that ETH will position itself as a digital bond and the primary asset used by DeFi as collateral.

Also Read: Ethereum Name Signups Service Rise 200% Due To Lower Gas Charges

Earlier in July, the average gas charge required to complete a transaction on the Ethereum network fell to $ 1.57, a figure not seen since 2020. The fall in gas tariffs follows the downward trend in non-mixed signal (NFT) sales, with NFT Purchases daily falling to its lowest level in a year.

While network gas charges are low, registrations for the Ethereum Name Service have increased by 200%. This happened earlier in July, when the ENS panel showed a jump from 11,042 records to 29,727. This buzz has also been attributed to ENS ‘s second biggest sale, which occurred the same weekend as the rise in registrations.