The Most Fascinating Ethereum news
Launched on July 30, 2015, Ethereum is now 6 years old. Since the very beginning, Ethereum news has dominated the crypto news portion. In the decentralized sector, Ethereum powers many cryptocurrencies. There was a time when “Ether” the currency of Ethereum followed bitcoin’s fluctuations. But since the growth of Ethereum, Ether has its driving factors in the market. Since the launch of Ethereum, ether has nearly 3.5 lacs forward contracts to date. The market value and volume of this currency will beat Bitcoin in near future. Ethereum has intrinsic value. For those who are not aware of what intrinsic value is, in simple terms intrinsic value is the value of the company, its assets. Here are some of the reasons why Ethereum is considered to have an intrinsic value.
- The capability of smart contracts:
Ethereum has the power and the efficiency to effectively execute smart contracts. It can power the apps like dapps and NFT. NFT stands for non-fungible tokens. The dapps are smart contracts that are recurring in nature. The stats till June 2021, there are 3000 DApps on Ethereum. It has more than 20000 Ethereum tokens which comprise the major 100 top cryptocurrencies in the world. This is the reason it is synonymous with DeFi. It is a major factor that increases the value of Ethereum. What does DeFi do? It is a trading platform where you can trade assets, borrow and lend money from each other without having to use banks directly. Apart from borrowing, there are some more functions like loans, insurance, and others. Favorable interest rates for borrowers and lenders have increased retail customers on the DeFi. If you have a look at it, you will see the huge worth of assets on this platform.
Ethereum has brought a revolution in the field of finance and technology. Both these fields have integrated through blockchain and, Ethereum has played a major role in role. DeFi is literally recreating the finance system with the infuse of technology. The apps based on Ethereum have created a great impact on government, investors, banks, public services. Ethereum has changed the system of trading, investment, lending, and borrowing. At the same pace, Ethereum has the potential to be one of the most successful cryptocurrencies as well as a cloud-based database platform. With this connectivity, people can reach anyone at any time through a public network. If you are considering buying ether, then it is perfect for the long term as Ethereum is going to flourish in near future.
- Stake Model:
Everyone has a tiny bit of idea about how you can create cryptocurrencies. They have to be mined through complex calculations. Currently, both bitcoin and Ethereum are doing the same. They need to work on consensus proof. The miners are often rewarded for doing the transactions and cracking the layers involved in mining. But now Ethereum is working to change this system with the introduction of Ethereum 2.0. The current system does not hold malicious behavior or frauds accountable. But with the new system, Ethereum is trying to change it. To validate the transactions, validators will have to put their ether stock at stake to certify that the block is valid. This way any malicious behavior can be caught and punished. Ethereum 2.0 will bring a great revolution in so many areas including transaction speed.
If we take two different metrics into account, the following observations can be done-
The block time of Ethereum is around 15 seconds but, on bitcoin, it is 10 minutes.
Ether transactions take 5 minutes to show but on bitcoin it is 40 minutes to complete.
The reason why bitcoin takes so much time is the fact that its main aim is security. The whole program and the coding are very difficult to hack. The Ethereum news conveyed that the main focus of Ethereum 2.0 will be increasing the transaction speeds. The upgrade will have beacon chains which will contain shard chains. These chains will carry out transactions on a parallel side. Overall the scalability of Ethereum will increase. The current Ethereum news has said that around 15000 transactions will be processed in 1 second through Ethereum 2.0.
The supply of bitcoin is around 20-21 million coins only. Thus, a limited supply. This is why bitcoin is called a store of value just like money. It is an investment but disinflationary or against inflation. But in Ethereum, the supply is not limited. An unlimited supply does not mean that one can get any number. There is a cap on the number that can be mined in a year. The supply of Ethereum increases or decreases based on the disinflationary mechanism. This also solves the scarcity issue because of which the price of bitcoin has gone so high. When the new model comes.
This system will also change. Miners will be called validators. They will earn a transaction fee for each smart contract they enter into. Once the validators put ether on stake to certify their block. The amount of ether in circulation will decrease, and due to this, the price of the currency will increase. It is a simple demand and supply mechanism. This way miners will be able to sell less ether because certification of the block is required. This will also reduce the cost of hardware and electricity used by the miners. The ultimate effect will be to control the supply and demand based on disinflation.
Ethereum has shown a great response since the last two years and, if it keeps on performing the same way, then it will become one of the most preferred currencies If you are willing to invest in crypto in 2021 end or the beginning of 2022, then Ethereum is one of the best buys to get long term profits. By the end of 2022, Ethereum will be on a different level and the investors can hear about some great Ethereum news and developments. The digital economy will boom and so will the currencies.