The crypto market has been crashing since October 2021. A year has passed and crypto prices are still on a decline. Despite this bearish market, it seems that Ethereum investors in particular are still looking for a brighter future. Ethereum is the biggest smart-contract blockchain that is currently hosting a plethora of ecosystems. Here are 3 reasons why Ethereum will not die and reach 0$.
What is Ethereum Blockchain?
Blockchain technology’s first use of smart contracts came from Ethereum. Since its launch in 2015, it has established itself as the second-largest cryptocurrency market behind Bitcoin. Ether serves as the Ethereum network’s network token.
The Ethereum Blockchain was able to establish itself thanks to the introduction of Smart Contracts, which enable the production of decentralized programs. The Ethereum ecosystem has expanded significantly during the past few years. In the DeFi and NFTs industries, Ethereum is the most widely used blockchain. The network employed proof-of-work in the past for consensus, but proof-of-stake was just recently introduced during the Merge.
Ethereum Roadmap – Where are we Today?
Ethereum has been working since July 30, 2015. However, not everyone knows that we are still in the very first stages of development. Here are the important milestones which the founder Vitalik mentioned during one of his recent talks:
- The Merge: This phase represents the switch of the consensus mechanism from Proof-of-Work to Proof-of-Stake
- The Surge (we are here): In this step, Vitalik talks about the further development and increase in scaling, L2s and sharding which all result in lower fees.
- The Verge: This step might sound a bit technical, but fear not! Basically, Vitalik spoke about the Verkle Tree, which is a process that encodes the blockchain. This results in faster and more secure data transmission on the blockchain, and quicker verification & movement of data from one computer node to another.
- The Purge: With all previous additions to the blockchain done, now comes enhancing the “craft”. This step consists of the different EIPs such as EIP1444, removing unnecessary data, and clearing logs that might cause congestion in the system.
- The Splurge: This final step consists of all the “cool stuff” that Ethereum is able to do, such as adding verifiable delay functions (VDFs) for extra security, and blocks finalizing immediately for extra speed.
Top 3 Ethereum Use Cases
1- Hosting other Cryptos
Anyone can build his own coins on the Ethereum network. Payments must happen using Ethers (ETH). Tether and USDC, the two most significant stablecoins in the crypto industry, are two examples of cryptocurrencies that are based on the Ethereum network.
2- Non-Fungible Tokens (NFTs)
An NFT is a one-of-a-kind, immutable digital asset that is kept on a blockchain like Ethereum. NFTs may represent anything, including video game goods, digital artwork, and even physical assets like real estate or homes.
3- Decentralized Finance (DeFi)
Decentralized finance is a catch-all word for financial goods and services like lending, borrowing, and earning interest that may be accessible on open blockchains like the Ethereum blockchain without the involvement of a third party like a bank. This industry is still in its infancy and is set for a massive explosion in the coming years. This is true as people across the world are realizing the importance of privacy and data protection. There wouldn’t be any perfect ecosystem to make this a reality other than in a purely decentralized world.
