Ethereum just solved a critical problem Bitcoin doesn’t want to fix on its own network – but why?

**Ethereum’s Strategic Upgrade Tackles Scalability Issue Unresolved by Bitcoin**

Ethereum, the second-largest cryptocurrency by market capitalization, has recently implemented a significant upgrade addressing a critical issue that Bitcoin has not yet resolved within its own network. This development highlights the divergent paths the two leading cryptocurrencies are taking in terms of scalability and network efficiency. While Ethereum aims to enhance its protocol to accommodate growing demand, Bitcoin continues to prioritize its foundational principles over immediate scalability improvements.

Ethereum’s recent upgrade focuses on improving scalability, a persistent challenge in blockchain technology that determines how well a network can handle an increasing number of transactions. According to [CryptoSlate](https://www.cryptoslate.com), Ethereum’s network enhancements are designed to increase transaction throughput and reduce latency, making it more efficient for decentralized applications (dApps) and users. This is part of Ethereum’s broader roadmap to transition from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism, which is inherently more scalable and energy-efficient.

In contrast, Bitcoin has maintained its original PoW consensus mechanism, which has been criticized for its scalability limitations and high energy consumption. As reported by [CryptoSlate](https://www.cryptoslate.com), Bitcoin’s network can process only a limited number of transactions per second, leading to congestion and higher transaction fees during peak periods. Despite these challenges, Bitcoin’s community largely values the network’s security and decentralization over scalability, which they believe are essential to its role as a store of value.

The decision to prioritize scalability on Ethereum’s network comes amid increasing competition from other blockchain platforms, which offer faster and cheaper transactions. Ethereum’s upgrades aim to ensure it remains a competitive and attractive platform for developers and users alike. [Read more at CryptoSlate](https://www.cryptoslate.com) to explore how Ethereum’s changes are expected to impact the broader blockchain ecosystem.

While Bitcoin has not yet implemented similar scalability solutions, it has explored Layer 2 technologies like the Lightning Network to improve transaction speed and reduce fees. These solutions, however, are not native to the Bitcoin protocol itself and require additional layers of infrastructure. According to [CryptoSlate](https://www.cryptoslate.com), this approach reflects Bitcoin’s commitment to maintaining its core protocol while leveraging external technologies to enhance usability.

In conclusion, Ethereum’s strategic focus on scalability showcases its proactive approach to addressing network limitations, setting it apart from Bitcoin’s more conservative stance. This divergence could influence how each network evolves and competes within the cryptocurrency landscape. As Ethereum continues to implement its upgrade roadmap, its ability to improve scalability may attract more developers and users, potentially increasing its market share. Meanwhile, Bitcoin’s steadfast adherence to its original protocol underscores its commitment to security and decentralization, ensuring its continued role as a leading digital asset. For a deeper dive into these developments, visit [CryptoSlate](https://www.cryptoslate.com).