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Central banks of Australia, Malaysia, Singapore and South Africa approved Ethereum usage

The central banks of Australia, Malaysia, Singapore, and South Africa have all approved the usage of the Ethereum blockchain, indicating that this crypto protocol is gaining traction.

Crypto sceptics who have been turned off by the speculative activity linked with the emergence of blockchains and accompanying crypto currency should give Ethereum a closer look. They will soon learn that Ethereum is winning the blockchain wars because it is quickly establishing itself as the preferred utility for businesses looking to digitise assets and services.

Chanticleer is reminded of earlier technology development cycles by the growing commercial validation of this blockchain protocol, which is poised to enter a new phase with a much-anticipated event called “the Merge.”

Multiple products compete for consumer and institutional adoption in the early days of technology adoption. As in cloud computing, a chosen few technologies or technological platforms gradually attain the size to dominate.

Former Australian Securities and Investments Commission chairman Greg Medcraft is currently a director of the Digital Finance Centre for Research and Co-Operation, and believes Ethereum is solidifying its place as the preferred blockchain platform. He claims that “the Merge,” also known as Ethereum 2.0, is crucial for a number of reasons, including better transaction efficiency and a lower carbon impact. He added that “the first version of Ethereum was successful because it allowed smart contracts and automatic execution.”

Sharding is the process of dividing the Ethereum blockchain into smaller bits so that it can be used more efficiently and support level two scaling options. “Secondly, it addresses the climate issue by relying on evidence of stake rather than proof of effort. This not only solves a problem from a carbon standpoint, but it also lowers the cost of using the infrastructure,” explains Medcraft.

The upcoming “The Merge” will prepare the Ethereum blockchain for sharding. The focus of the future release is on the transition to proof of stake. Ethereum, according to Medcraft, is well positioned to become the dominant blockchain in business.

The RBA’s central bank digital currency is being advised by the Digital Finance CRC, which is a collaboration between the federal government, six universities, a few commercial banks, and the Reserve Bank of Australia. It’s worth noting that Ethereum is a key component of a proposed infrastructure for Australia, Malaysia, Singapore, and South Africa’s central banks to execute digital currency transactions.

A shared platform is the most efficient model for payments connection, but it is also the most difficult to implement, according to this study, which involved the Bank for International Settlements’ Innovation Hub. “Key concerns of trust and shared control may be resolved through governance structures enforced by robust technology means, creating the groundwork for the establishment of future global and regional platforms,” according to Project Dunbar.

Speakers at the Blockchain Australia conference verified Ethereum’s commercial validation as the preferred blockchain for entrepreneurs and revolutionary DeFi business models. Many presenters emphasised the environmental benefits of proof of stake over the proof of work technique of bitcoin mining.