Ethereum’s rise has been unprecedented but largely beneficial. From being a token perceived to rival bitcoin’s dominance, it has carved out a niche for itself as being the backbone of innovation in the cryptocurrency space. We wouldn’t be wrong if we said bitcoin walked so Ethereum could fly, and it seems we are not alone. A renowned on-chain analyst also thinks so, and he has gone a step further to predict that the Ethereum token will be the innovation focus for the cryptocurrency space. Before we can analyze the reason for his prediction, let us take a brief overview of Ethereum and the perks that have come from the ecosystem.
Ethereum started as a thought in the mind of Vitalik Buterin, and although he is not the only figure in its inception, he seems to be the most popular. After releasing its whitepaper in 2013, the cryptocurrency launched two years later, with its coin, Ether, being the center of its establishment. Although it has not been impervious to attacks from malicious actors or from network issues in itself, the network has gone on to establish itself as the go-to network for both innovative ideas and development in the cryptocurrency space. Some of the innovations either created or amplified by ethereum include
NFT is an acronym for Non-Fungible Token. It refers to irreplaceable, immutable tokens that aim to improve the trust and uniqueness of digital items. Unlike in traditional spaces where artists are underappreciated, the playing field is skewed more to honoring artists after their death, and the number of counterfeited artworks increasing by the year, NFTs provide themselves as a one-size-fits-all solution to all these problems. It does this by placing the digital artworks on the blockchain and has gone further than that to be used for identification means.
The NFT trend has controversial origins, but the converging points between these “first-ever NFT” options all lead to Ethereum.
The limelight shown on the NFT soared when the CrytoKitties project launched in 2015. Being a blockchain game with the option to own kittens as NFTs, the CryptoKitties project saw a massive boom, with over 1 million dollars spent in the first few weeks. Although its hype was short-lived, it set a precedence both on the Ethereum network (congestions) and on the NFT space.
The blockchain technology focuses on scalability, security, and speed, and the decentralized finance space beautifully encapsulates this. Using smart contracts which have been pre-programmed with certain instructions, the need for a middle man is completely eradicated. Hence, passive means of earning, strengthening layer-2 consensus, and trust have been improved. Although there are many malicious actors in the DeFi space, with bugs in the smartcontract, Ethereum has shown us a possibility with decentralized finance, and it is very unlikely that this space would go down the drain.
Except you live under the rock, you would have heard about the Web 3.0 and the metaverse. Having virtual worlds is a bliss that is better explained than described, and the economy of these metaverses runs on blockchain technology. So far, most metaverses have built their economies around the Ethereum network, and this trend is not changing soon despite many alternative protocols offering hopes of faster and more scalable transactions.
Decentralized Applications are applications that are placed on the blockchain. That is the only advantage they have over normal games. Using smart contracts, decentralized applications are autonomous. Like Every other item on this list, DApps were made popular by Ethereum to provide utility to the crypto space.
All the transactions performed on the Ethereum blockchain are recorded in the Ethereum explorer, but the problems plaguing the Ethereum network have called for a new hard fork, the ETH 2.0 (recently rebranded as consensus layer). Its proposed 100,000 transactions per second will be a crypto-high record and help the network become more scalable to accommodate the many features running on it.
Willy-woo’s prediction of Ethereum
This is probably what on-chain analyst, Willy Woo, thought of for so long for him to be bullish on Ethereum. Although he admits that there are many malicious actors on the Ethereum protocol, Woo said that there is nothing to worry about since we are still early on cryptocurrencies.
Likening cryptocurrencies to the growth of the internet at the turn of the century, he explained that as many great companies came out from the rush of the internet age, history is repeating itself with the innovative projects launching on Ethereum, and it is exciting to witness it with a more matured mind. Like many internet projects that failed, Woo expects many projects on the Ethereum protocol to fail, but there will also be other projects that will last many more years to come.
In his words, the ease of raising funds has been easier, but this has also created the disadvantage of many scam projects coming up.
The space is still young, and many new projects are coming up to offer solutions to the flaws of previous projects. It shows we are learning, and the best is yet to come. Just as the Ethereum project has grown from being an experimental project, Ethereum 2.0 will be no different. There have been calls for validators on the network, and users can earn passively using Ethereum staking pools if they cannot afford the 32ETH staking fee. They can stake with as low as 0.1ETH on redot’s staking platform; redot.com/eth2/