2020 To Be A Deciding Year For Proof-of-Stake (PoS): From ETH To ADA

Many analysts are predicting big rises for the Proof-of-Stake protocol known as PoS. They all agree on 2020 to be the deciding year for proof of stake blockchains – and a year when the value of these blockchains will finally break out.

Two of the most hotly anticipated PoS networks in the industry are scheduled to (re)launch in Q1, as the crypto news show. They are Ethereum (ETH) and Cardano (ADA).

However, the ETH news show that Ethereum is the second largest blockchain out there and thus the focus when seeing the shift to PoS. As the co-founder of Ethereum, Vitalik Buterin noted recently, he sees PoS as a key to Ethereum reaching maturity.

“Ethereum 1.0 is a couple of people’s scrappy attempt to build the world computer; Ethereum 2.0 [with PoS] will actually be the world computer,” he noted.

PoS has been around since 2012, but its applications have not been proven to outperform proof-of-work (PoW) platforms in usage or market value (Bitcoin or Ethereum, for instance). This is why many analysts predict 2020 to be the turning point where blockchain platforms such as EOS, Tezos, Cosmos and others are about to adopt PoS.

Speaking of, PoS will help all of the blockchains to validate the owned currency that they are verifying. There will be no mining, which means no use of electricity and solving math problems. According to PoS supporters, the technology will be magnitudes more scalable, sustainable and secure compared to the traditional PoW blockchain systems. However, the jury is still out on its comparative strengths and the governance – if it can be made and put to work.

As we can see, many suggest 2020 to be a turning point for Proof-of-Stake (PoS) as a protocol. Besides the blockchain news about Ethereum and this PoS development, we can also see that Cardano, rather than launching a new PoS system – is looking to upgrade its own pre-existing PoS platform as a public network.

“This marks the starting point for handing the [Cardano] protocol completely to the community,” the CEO of Cardano said when talking about the next year network upgrade, dubbed “Shelley.”

As a 12th largest cryptocurrency by market cap, Cardano is currently governed by a federated system of transaction valudators made up of three organizations. Charles Hoskinson recently spoke about the future of ADA and noted that the public network will have 100 times more people running its software than Bitcoin, Ethereum or any other PoW system.