Why You Are Thinking About Ethereum All Wrong

Did you hear? Ethereum is dead. Or not … Wait, it’s agile. The price is not high enough. Other chains get attraction. Something has to be done.

Ethereum He is not dead. It’s not agile. It’s good.

The constant chatter of Ethereum online seems to fulfill the need for the drama that the net itself has failed to provide. Ethereum was the leading and largest programming in the world blockchain Since its inception. As Ethereum approaches his 10th Birthday, remains a preferred destination for digital property investors, banks and start-up companies in the cryptocurrency ecosystem.

Perhaps the biggest friction source in the ecosystem comes from the gap between those who see Ethereum as a computer platform – the foundation for the future of digital finances – and those who would like to be an ideal digital property and a storage of values, the like, if not better than better than better than that Bitcoin. For the latter group, Ethereum’s low asset price in relation to Bitcoin is an eternal source of disappointment.

For people who see Ethereum primarily as a computer platform, the low property price is secondary to a high successful network transformation in the last few years. In their opinion, my own, Ethereum has moved from strength to power.

Ethereum then and now

Return an hour five years and things looked different. Ethereum was closer to the wild proof of the concept of the future of finance.

The network struggled to execute more than one million transactions a day, and when it became congested, transactions reached absurd levels, as many as $ 50 for one payment or transfer. And each transaction came with a large carbon print, thanks to a system for processing evidence transactions.

Today, evidence The system is gone. In his place, Proof of role The same working load is processed with carbon print 99% lower.

Ethereum’s crumb is also a distant memory. Today, the net can handle up to 250-450 million transactions per year, according to recent estimates. Over 100 companies built an extension at the top of Ethereum (known as layer nets 2). A huge mismatch between available capacity and actual typical demand He led to collapse in transaction fees. Fees on these spread nets are reliably between 0.01 and $ 0.10, according to L2FEES.INFO data.

Lower transactions for transactions mean lower “dividends” to the network stakeholders. Ethereum’s proof of a system of stakes and scalling of layer-2 was so successful that they had effectively reduced the “yield” to investment, reducing the value of Ethereum regarding some investors, especially those who see Ethereum as a change only on Bitcoin.

But Ethereum Not Bitcoin. The exceptional success of the Ethereum always stems from his strength as a platform on which he can be built. The platforms collect power over time, encouraged communities of developers and continuous introduction of new opportunities.

Here Ethereum really shines. The network has worked for almost a decade without a break, executing large network upgrades every six to eight months. No other blockchain ecosystem is approaching reliability.

Ethereum tomorrow

The Ethereum Foundation (EF), a development organization, has strategically invested in critical technology and, more importantly, in resistance.

Almost every main component of the network infrastructure has more unique providers, many of which are funded by grants from EF. This means that no point of failure. More than a million people bring Ethereum, according to data on Beachocha.inand there is more than 10 000 active network nodes. The last plan of Ethereum, discovered in November, has been a long time to increase the capacity and the performance of the command.

None of this is terribly interesting if you want to sell meme coins quickly. But everything is critically important to banks, corporations and governments that are considering the renovation of the future of their financial infrastructure. The second group of builders moves more slowly, but with far higher long -term value. It is not surprising that more than 85% of the digital assets are “real world” and more than 50% of the stable value on Ethereum.

The price of Ethereum’s property can still recover because growing demand compensates for low transaction prices. The Ethereum price form will now be different.

It is not digital gold, swinging up -body on the basis of geopolitics. It is the next network computing platform, guided by permanent growth in quantities of transactions. If you adjust your position, the way upwards becomes much clearer.