Q1: How is the Cancun upgrade different from the Ethereum Shanghai upgrade?
The Cancun upgrade is the next major upgrade of the Ethereum network. Compared with the Shanghai upgrade, the Cancun upgrade introduces more improvements and new features. The most important change is the shift from the Proof of Work (PoW) consensus mechanism to the Proof of Stake (PoS) consensus mechanism. This will make Ethereum more energy-efficient, more scalable, and able to achieve lower transaction fees.
Q2: What impact will the Cancun escalation have on the macro market?
The Cancun upgrade may have a positive impact on the macro market. First, due to the switch to the PoS consensus mechanism, Ethereum's energy consumption will be greatly reduced, which will help improve the sustainability and environmental friendliness of the entire cryptocurrency industry. Second, the Cancun upgrade is expected to increase Ethereum's scalability, increase transaction throughput, and reduce transaction fees, thereby attracting more users and developers to participate in the Ethereum ecosystem.
Q3: What benefits will the Cancun upgrade bring to us?
Will Layer 2 be the biggest beneficiary? What are the projects worth paying attention to? The Cancun upgrade has brought some benefits to us. First, the switch to the PoS consensus mechanism will make Ethereum more energy-efficient and have lower transaction fees, which will enable users and developers to use the Ethereum network more cheaply and efficiently. Secondly, the Cancun upgrade is expected to increase Ethereum's scalability, which will provide a better foundation for Layer 2 solutions, allowing scalability solutions on Ethereum to work better. Regarding projects worth paying attention to, Layer 2 scalability solutions such as Optimism, Arbitrum, and zkSync are all worth paying close attention to.
Q4: The Cancun upgrade may resonate with the Bitcoin halving. What do you think about this?
Will there be any changes to the overall market trend? There is no solid evidence or research to support the claim that there is a resonance between the Cancun upgrade and the Bitcoin halving. However, the upgraded Ethereum network will have higher scalability and energy efficiency, which may attract more investors and developers to participate in the Ethereum ecosystem, thus having a positive impact on the entire market.