What Does The Future Of Ethereum 2.0 Hold In India?

By February 23, 2022March 29th, 20226 minute read
What does the future of Ethereum 2.0 hold in India - WazirX

Can we make quick and easy profits effortlessly today? If you’re a skeptic, the growth of cryptocurrency over recent years would like to prove you otherwise. These digital assets that can be bought near-instantly have sparked popularity in India and all over the world.  

But wait, how did they get popular? 

You can thank the big guns of the crypto world – such as Bitcoin and Ethereum. With some of the biggest market capitalizations today, these two cryptocurrencies have gripped everyone’s attention via their utility. But in the words of Uncle Ben – With great power comes great responsibility; these massive digital assets have to keep upgrading constantly, and guess what? Ethereum is already on the move with Ethereum 2.0

Let us show you how!

A Primer on Ethereum

Before we explore the future of Ethereum 2.0, allow us to brush up your memory on what Ethereum itself is. 

Founded in 2015, Ethereum is an open-source blockchain. People often confuse Ethereum with Ether- but we’ll make it simple for you. Ethereum is used as a term for the whole blockchain, while Ether (ETH) is its crypto coin. Investing in Ether isn’t hard either; if you use a popular crypto exchange like WazirX, it’s only a matter of minutes until you can call yourself an ETH holder with Ether in your crypto wallet.

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Now, you might think to yourself – what makes Ethereum different from others then? Don’t I just buy and sell Ether like most new crypto coins?

You see, that’s exactly where Ethereum stands out. Ethereum was created for organizations to utilize new tech like smart contracts and enabled the existence of thousands of other cryptocurrencies on its blockchain. These crypto-assets run on the Ethereum blockchain and derive value from its infrastructure. Smart contracts can automate most complex tasks – such as escrows and insurance – with no third parties involved. Thanks to the boom of the blockchain revolution, Ethereum in India, has its share of attention. 

If you wish to remember it quickly, think of the Ethereum blockchain as a programmable network, serving as a common platform for conducting transactions with Ether (as their currency) safely, free of fraud.  

Ethereum’s Current state in India 

Ether appears to be the most probable competitor that can overtake Bitcoin. At present, it is the second-largest digital currency by market capitalization after Bitcoin. Last year, the prices of digital tokens soared all around the world, which resulted in a 30% volume increase in cryptocurrency transactions in India. 

According to The Hindu Business Line, several cryptocurrency prices surged, with Bitcoin increasing by approximately 445% from March 1st, 2020, and February 28th, 2021. Ethereum similarly proliferated by 578% along with other tokens. 

Further, India contains around 10 million cryptocurrency users, on an estimate, and its popularity seems to only increase. 

According to the data of the blockchain analysis company Chainalysis, Indians are investing in cryptocurrencies in hordes. While 2020’s investments amounted to $200 million, the figures as of July 2021, in just the middle of the year, have escalated to $40 billion.

Current adoption of Ethereum 

Looking at the popularity of Ethereum in India, we might be moving towards massive adoption. This increase is emerging due to various reasons, such as the introduction of Ethereum 2.0, enhancing its Proof of Work model by moving to a Proof of Stake model. Indians are now getting familiar with cryptocurrency and better automation services such as smart contracts, thanks to Ethereum.

Problems with the current Ethereum network 

The growth of Ethereum’s market, in particular, is soaring, yet some flaws necessitate an upgrade to the current system. Millions of Ethereum users trade through their devices like- smartphones, laptops, computers daily, and this number is bound to increase more. This creates multiple problems for the network.

Such as scalability. The number of users on the platform exhibits a heavy load, causing a surge in transaction fees and transaction times.

Every device connected to a blockchain is called a node. Nodes are linked together and constantly exchange data. However, the constant and massive volume of consumer data is beyond what current nodes can handle, causing the network to “jam”, so to speak, fairly frequently.

Of course, more transactions mean more usage. And more usage requires tons of computing power. The current usage rate of the Ethereum network causes these computers to emit large amounts of greenhouse gases. 

How Ethereum 2.0 can solve these issues

Now down to what Ethereum 2.0 has in store for us. Let’s look at some potential game-changer updates in Ethereum 2.0 we all are anticipating for.

Increasing Scalability

Scalability is a big and significant development of Ethereum 2.0. 

To tackle the current issue of network congestion, Ethereum is switching to a different and scalable processing technique. It’s been given the name “Sharding” which involves distributing the nodes into small chunks that can increase data storage. These smaller units have more capacity to hold and transfer data; however, implementing the entire thing itself requires more brainpower than usual. 

Hold on… why don’t they just increase the node size then? Wouldn’t that be much easier?

Yeah, we wish it was. 

Programmers in the past have tried this but eventually came to a dead end as nodes reached their limit. You could look at Sharding as the common solution that all could agree on. The complexity of the technique might also need more time to establish. This may cause Sharding to be brought out at the last phase. 

Better TPS (Transaction per Second) 

The immense increase in exchanging data on the Ethereum network causes transactions per second to be delayed. Ethereum 2.0 tackles the issue of slow TPS and promises to deliver 100,000 TPS! That’s what you call an update. As compared to Ethereum’s previous TPS rate of around 15-45. 

Efficiency

As mentioned earlier, environmental concerns have leaped due to Ethereum’s mining process. 

However, Ethereum 2.0 brings a better solution for the world. According to projections, the total energy consumption on Ethereum 2 will be 99% lower than Ethereum. Honestly, this opens new doors and introduces environmentally friendly options in the crypto space. 

Other new update(s)

Another big change that Ethereum will go through is switching from a proof of work system (POW)  to a proof of stake (POS) mechanism. This will support the seamless working of the network. 

Ethereum 2.0’s update called phase 0 is already live and running! Their new upgrades will be launched in phases and are planning to be completely open soon. 

How can you buy Ether?

If you’ve made it this far, chances are, you want to buy Ether yourself. Now hold your horses before you search up a crypto exchange after reading because we have just the thing you need. 

You mean a good crypto exchange? 

Yes, exactly that. 

WazirX is India’s most trustworthy cryptocurrency exchange, providing you with the best crypto platform to buy now, along with the lowest transaction fees. The platform’s simple and to the point: 

  1. You get in
  2. You buy/invest
  3. You sell

Not hard at all, right? The platform itself is also backed up by high-level security with instant KYC approvals to top it all off. 

If you’re interested, you can visit the website and: 

  1. Go to the Signup option and fill in your details.
  2. Get your email and KYC approved. 
  3. Select your country to deposit. 

And Voilá, you can buy Ethereum in India! 

Conclusion 

To wrap it up, the foreseeable future of Ethereum 2.0 in India is a threat for other cryptocurrencies with enhanced services and better vitality. Make sure to let us know below if you agree with us on the points mentioned and any more possible upgrades you would like to see yourself! Also, don’t forget to visit us at WazirX!

Can I Invest In Cryptocurrency?

Yes, with exchanges like WazirX, you may invest in cryptocurrency in India. To begin, go to the WazirX website and register. After that, you will receive a verification email. The link received by verification mail will only be available for a few seconds, so make sure you click it as quickly as possible. This will successfully verify your email address. The following step is to set up security, so choose the best solution for you. After you've set up the security, you'll be given the option of continuing with or without completing the KYC process.

What Is The Safest Cryptocurrency To Invest In?

Bitcoin has had the highest market capitalization, has been around the longest, has the most experienced development team, and has enormous network impact and brand recognition. As a result, while trading cryptocurrencies, the rate of return on Bitcoin is commonly used as a benchmark. However, the risks associated with cryptocurrencies remain, and the safest cryptocurrency for you depends on your analysis.

Is Cryptocurrency Safe To Invest In?

Cryptocurrency investments are subject to market risks, but if sufficient security measures are not taken, trading accounts can be maliciously accessed. Investments come with risks and uncertainties, and we cannot claim that any digital currency investment is risk-free. Buying and selling cryptocurrencies can be risky even if the trader is knowledgeable about the market and treats their coins carefully.

What Are The Best Cryptocurrencies To Invest In?

The best cryptocurrencies to invest in would be the ones you study and analyze in detail. Some of the most popular cryptocurrencies include Bitcoin, Ethereum, and many altcoins such as Tron, Ripple, Litecoin, etc.

Is Mining Cryptocurrency Legal?

Cryptocurrency mining can be time-consuming, expensive, and sporadically profitable. Mining has an appeal for many cryptocurrency enthusiasts as miners are paid directly with crypto tokens for their efforts. The legality of cryptocurrency mining is dependent on where you live. In India, there is no restriction on crypto mining.

Is Ethereum Safe To Invest?

The Bitcoin market is unquestionably more volatile than the stock market. This may not be the market for you if you are incredibly risk-averse. Ethereum, on the other hand, may be a terrific investment for you if you're a diamond-handed investor who won't lose sight of short-term losses. Ethereum is a relatively safe investment as it is also based on blockchain.

How To Invest In Cryptocurrency Stocks?

Cryptocurrency can be purchased in two ways: through mining or exchanges. The process of confirming and adding transactions to the blockchain public ledger is known as cryptocurrency mining. Cryptocurrency exchanges are another option. Exchanges make money by charging transaction fees, but there are alternative platforms where you may communicate directly with other cryptocurrency traders.

How Safe Are Cryptocurrencies?

Cryptocurrencies can be safe, but your crypto wallets can be hacked if proper security steps are not performed.There are also dangers and uncertainties associated with investments, and we cannot declare any virtual currency investment risk-free. Buying and selling cryptocurrencies does not have to be dangerous if the trader is well-versed in the market and treats his coins with care.

Is Bitcoin And Cryptocurrency The Same Thing?

Bitcoin is a cryptocurrency that was designed to facilitate cross-border transactions, eliminate government control over transactions, and streamline the entire process without third-party intermediaries. The absence of intermediaries has resulted in a significant reduction in transaction costs. Satoshi Nakamoto, the creator of Bitcoin, created the first cryptocurrency in 2008. It began as open-source software for money transfers. Since then, plenty of cryptocurrencies have emerged, with some focusing on specific fields.

Are Cryptocurrencies A Good Investment?

Cryptocurrency has the potential to make you extremely wealthy, and the potential to cause you to lose your money. Crypto assets, like any other investment, come with many risks and potential rewards. Fundamentally, cryptocurrency is an excellent investment, particularly if you want to gain direct exposure to the demand for digital currency.

Who Invented Cryptocurrency?

Satoshi Nakamoto invented cryptocurrencies and the technology that makes them function in 2009. The presumed pseudonymous individual or persons who invented Bitcoin used this identity. In addition, Nakamoto created the first blockchain database. Even though many people have claimed to be Satoshi Nakamoto, the person's identity remains unknown.

Are Cryptocurrencies Legal In India?

In India, cryptocurrency is legal, and anyone can buy, sell, and trade it. Because India lacks a regulatory system to regulate its operations, it is presently uncontrolled. According to the Ministry of Corporate Affairs, companies must now document their crypto trading/investments inside the financial year.

Is Pi Cryptocurrency Safe?

Pi Network (PI) is the newest digital token to catch the cryptocurrency community's interest, even before it has wholly debuted. Some users see it as a chance to get engaged in a cryptocurrency from the beginning and profit in the future, similar to how early Bitcoin adopters made huge profits by mining and keeping the coin. Other users have compared Pi to a worthless multi-level marketing (MLM) scheme.

What Is Virtual Currency?

Virtual currency is a type of uncontrolled digital currency that can only be used online. It is exclusively stored and transacted using designated software, mobile or computer applications, or unique digital wallets, and all transactions are conducted through secure, dedicated networks. Because digital currency is just currency issued by a bank in digital form, virtual currency is not the same as a digital currency. Virtual currency, unlike ordinary money, is based on a trust structure and cannot be issued by a central bank or other banking regulatory organization.

What Is The Meaning Of Crypto?

A cryptocurrency is a digital currency that is secured by the process of cryptography, making counterfeiting and double-spending almost impossible to happen. Blockchain technology is used to produce cryptocurrencies ( a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are distinct in that a centralized authority does not issue them.

Which Cryptocurrency Is Best To Invest Now?

Litecoin has an 84 million coin limit and a 12.5 LTC block reward, which is more than other cryptos. Miners will find that mining Litecoin is faster than mining any other cryptocurrency because the average time to mine a Litecoin is under two minutes. Because of its increasing popularity, Litecoin is the best of all the altcoins. At WazirX, the current price of Litecoin is ₹12,410.22.

Which Cryptocurrency Is Best To Invest In 2021?

Many altcoins are flourishing to invest in. Some cryptocurrencies with great potential are Ether, Ripple, Tron, and more. Investors are trying to diversify their portfolios and are flocking to the leading cryptocurrencies. Many growing businesses are already accepting cryptocurrency as acceptable payment methods.

Is Cryptocurrency Banned In India?

No, cryptocurrency is not banned in India. India has seen its ups and downs in the crypto sector concerning its legal status. The Reserve Bank of India (RBI) issued a circular in April 2018 advising all organizations under its jurisdiction not to trade in virtual currencies or provide services to assist anyone in dealing with or settling them. A government committee proposed outlawing all private cryptocurrencies in mid-2019, with up to ten years in prison and severe penalties for anyone dealing in digital currency. The Supreme Court overruled the RBI's circular in March 2020, allowing banks to undertake cryptocurrency transactions from dealers and exchanges.

What Is Crypto?

Crypto or a cryptocurrency is a digital currency protected by cryptography, making counterfeiting and double-spending nearly impossible. Blockchain technology is used to produce cryptocurrencies (a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are distinct in that a government does not issue them. The word "cryptocurrency" refers to the encryption methods employed to keep digital currencies and the network secure.

Is Crypto Legal In India?

Cryptocurrencies are legal in India, and anyone can purchase, sell, and exchange them. It is currently uncontrolled, as India lacks a regulatory structure to oversee its operations. Per the Ministry of Corporate Affairs, companies must now record their crypto trading/investments within the financial year. In cases where a person receiving the gains is an Indian tax resident, or the cryptocurrency is regarded as domiciled in India, cryptocurrency transactions have been taxable in India

How Many Cryptocurrencies Are There?

There are over 5000 other digital currencies available on the internet in addition to Bitcoins. The only problem is that they haven't gotten the users' attention. Besides Bitcoins, a few other digital currencies have gained popularity among users. It's been more than ten years since Bitcoins were first released, and now they've achieved new heights thanks to their phenomenal success.

How To Invest In Cryptocurrency In India?

There are two ways of investing in cryptocurrency, mining and via exchanges. Cryptocurrency mining is the process of verifying and adding transactions between users to the blockchain public ledger. Purchasing cryptocurrency in India is a straightforward procedure where investors simply participate by registering with a crypto exchange such as WazirX. After registering for an account, citizens can trade multiple cryptocurrencies, store cryptocurrency in wallets, and more.

How Cryptocurrency Works?

Cryptocurrencies use cryptography technology to keep transactions and their units (tokens) secure. Cryptocurrency works via a technology called the blockchain. A blockchain is a decentralized technology that handles and records transactions across numerous computers. The security of this technology is part of its value.

How To Invest In Cryptocurrency?

There are two ways of investing in cryptocurrency, mining and via exchanges. Cryptocurrency mining is considered the procedure of verifying and adding transactions to the blockchain public ledger. Another option is via cryptocurrency exchanges. Exchanges generate money by collecting transaction fees, but there are alternative websites where you can interact directly with other users who want to trade cryptocurrencies.

Is Cryptocurrency Legal In India?

In India, cryptocurrencies are legal; anyone can purchase, sell, and trade cryptocurrencies. They are currently unregulated; India does not have a regulatory framework in place to regulate its functioning. According to the Ministry of Corporate Affairs (MCA), companies must now declare their crypto trading/investments during the financial year, according to the Ministry of Corporate Affairs (MCA). Cryptocurrency transactions have been taxable in India when people receiving such gains are Indian tax residents or where the crypto is considered to be domiciled in India

What Is Cryptocurrency?

A cryptocurrency is a digital currency secured by encryption, due to which chances of activities such as counterfeiting and double-spending taking place get close to impossible. Cryptocurrencies get created on blockchain technology ( a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are unique in that they do not get issued by any central authority. The term "cryptocurrency" comes from the encryption techniques used to keep digital currencies and the network safe.

Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
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