Binance crypto exchange CEO Changpeng Zhao says that while the transition of Ethereum (ETH) to the proof-of-stake (PoS) consensus mechanism is progress in the right direction, it is not “earth-moving.”
Zhao says in a new Crypto Banter interview that the revolutionary change that Ethereum could make is lowering transaction costs and enhancing scalability through sharding.
“I think it’s [Ethereum transitioning to PoS] very important. But I don’t think it’s a fundamental change. There are other blockchains that are PoS already. There are other blockchains that are staking, deflationary…
I think all of this is important, but it’s not like earth-moving. But it’s definitely progress in the right direction.
I think what will be earth-moving is when the fees drop, when the sharding kicks in and when they can go live with sharding. That’s a much harder problem to solve.”
Sharding is the process of splitting Ethereum’s infrastructure into smaller pieces called shards in an effort to distribute the load and increase the blockchain’s scalability.