To understand the platform we have to understand what it does and what makes it so popular in the world of cryptocurrencies. Ethereum is a decentralized platform that executes intelligent contracts: applications that run exactly as scheduled without the possibility of downtime, censorship, fraud or third-party interference. This platform was created in 2014 by a worldwide team of passionate developers from Ethereum Foundation, a Swiss non-profit organization.
Ethereum today is the second cryptocurrency with the highest capitalization in the market, bitcoin continues to lead with a 55% capitalization while Ethereum is in more than 22% capitalization. Further away are XRP, EOS and Bitcoin Cash.
Ethereum brought to the world the implementation of smart contracts, these are used to create decentralized applications (DApps).
Let’s see what problems the Ethereum platform has, and how they plan to solve it to face their competitors.
The first problem that Ethereum has is the scalability, the first main problem that this platform has is its blockchain, since it is growing at an accelerated rate for each new node and the download of the Ethereum Blockchain each day that passes is more difficult to download .
What is the solution to Ethereum’s scalability? We are trying to find that the blockchain downloads with all the information are not downloaded but if they are stored in the database. They seek to use ESHA, so users of the platform would not have to download the complete blockchain database. ESHA would act as a complementary node.
Another of Ethereum’s problems as a platform are the transactions per seconds, currently they are more than double that of bitcoin, approximately the Ethereum platform is at about 15 transactions per second.
The solution to Ethereum’s transaction capacity is to implement ESHA, which would give the Blockchain more capacity and speed.
Serenity Pos with Casper: This is the next update of the Etherum platform, Serenity will provide Ethereum with another consensus algorithm. This change once implemented by the platform will allow not to spend as many resources as is currently happening.
Plasma: This update was presented by the creator of Ethereum, and will possibly be launched once the platform algorithm is updated (Serenity). This project is aimed at smart contracts and seeks not to spend so many resources through the network.
Ethereum is trying to find solutions to their ecosystem to be more efficient, possibly once they have been updated we can have a faster platform when executing smart contracts.