Cryptocurrency

The Future of Ethereum

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Amidst the worldwide Covid-19 pandemic, blockchain technology, decentralized financial systems, cryptocurrencies, bitcoin, and Ethereum have never cooled down. In particular, the decentralized financial system of Ethereum is increasingly receiving the attention of Wall Street financial investors. Decentralized financial system and Ethereum Fund provide various forms of payment, maximizing transaction time without being constrained by space, geographical location, or time. Recently, experts have even commented that while bitcoin is the beginning of the crypto era, Ethereum will be the application that will prolong this era forever.

What is Ethereum?

The birth of Ethereum is associated with improving Bitcoin and expanding the cryptocurrency market’s transaction capacity and size. The feature that sets Ethereum apart from Bitcoin and other fiat currencies is its decentralized financial system with smart contract constraints. Smart contracts are encoded into the blockchain and will automatically execute the contract when the conditions are completed. The Ethereum blockchain can run multiple smart contracts concurrently and verify contracts without going through courts, judges, legal systems, or third parties.

Common types of smart contracts include options contracts, swaps, or coupon-paying bonds. Smart contracts can also be tools for users to make bets, complete labor contracts, collateral to buy products of great value, etc. Ethereum smart contracts have potential and ambition supersedes all kinds of human legal, financial and social arrangements.

On the Ethereum decentralized financial system, investors receive tokens called Ether (ETH). Currently, ETH is the second most valuable blockchain in the world after Bitcoin. Ethereum can encrypt, decentralize, secure and transact anything, any commodity, or any service. The condition is that there is a seller, a buyer, and there is Ether to exchange.

Investors can also mine and trade Ether on other cryptocurrency exchanges, allowing the use of Bitcoin or fiat currencies.

Growing in popularity, compared to bitcoin

April 2021, the world witnessed an ominous collapse of cryptocurrencies as prices were reaching all-time highs. Before April 2021, most of the cryptocurrencies increased in price by 200-300%. Therefore, the terrible price drop made Bitcoin all over the headlines. Investors began to worry about the sine-like nature of Bitcoin’s price movement.

Currently, people choose to invest in Ethereum instead of Bitcoin because of the practical uses of Ethereum. The platform enables decentralized applications (dApps) and provides safer and more anonymous ways to conduct various financial services, eliminating intermediaries such as banks and brokers agencies.

The difference between Ethereum and Bitcoin has caught the attention of the major players in the market. They assess Ethereum has a good chance to surpass Bitcoin’s $660 billion market cap. The Ethereum network shows great promise because of its real-world applications and store of value. Ethereum represents the future of programmable money and smart contracts.

Ether has gained nearly 1,000% over the past 12 months despite the cryptocurrency’s recent drop compared to Bitcoin’s 300% gain. Bitcoin is purely a token of value – a currency backed by the perceived value of its holders. Ethereum and the ETH blockchain are mutually reinforcing. Recent upgrades to the Ethereum network are helping it scale much faster and reduce transaction costs on the platform, pushing the price of ETH tokens even higher.



The future of Ethereum

Decentralized autonomous organizations (DAO’s) are understood as business corporations, buying and selling, trading everything from labor, finance, investment, budget, lending, leasing to make profits without the interference of any arbitrator such as law, institution, or person. And experts say that the Ethereum Decentralized Financial System is the foundation for the growing and growing DAOs. A free, unfettered financial network is the future of all transactions and exchanges in the world. Blockchain technology can encode everything into Ethereum, whether tangible like objects, products, or intangible like services.

In addition, Dapps decentralized applications are also an evolving future of the Ethereum decentralized financial system. Dapps have been developed based on smart contracts to serve micropayments, gambling applications, service booking, and P2P marketplace. Daaps is growing because it runs on the Ethereum blockchain without monitoring a central authority or anyone. People can chat, gamble, shop, and transact billions of things anonymously.

How to invest in Ethereum?

Due to the factors mentioned in the above section, the long-term Ethereum value forecast is very optimistic. If you are wondering how to buy a cryptocurrency and are considering investing in Ethereum, now could be a great time to add this coin to your portfolio. The momentum in the market, combined with Ethereum’s solid use case, makes this cryptocurrency one of the most exciting options from now on.

If you want to invest in Ethereum, buy Ether. To buy Ether, you must first create an account on a cryptocurrency exchange. Most DeFi platforms provide a simple buying interface for beginners. You can proceed to purchase cryptocurrency by credit card or transfer from a bank account, Paypal. For handy instructions on buying Ethereum with PayPal, you can visit this site.

When choosing an exchange, make sure that it offers a crypto wallet to store your investments. The vast majority do, but if your exchange system doesn’t offer a digital wallet, you will need to have one of your own.

Conclusion

Ethereum represents a sustainable, function-oriented approach to cryptocurrency that will support the future of DeFi. But many remain on the sidelines, waiting for government regulations to be enforced.

While longtime crypto investors complain about the regulatory mindset that restricts the freedoms existing in the market, large investors and companies see the implementation of such regulations as a source of stability, which could lead to mass adoption.

Ethereum is about to undergo a significant transformation to overcome a growing challenge facing cryptocurrencies like Bitcoin – environmental sustainability. The global Bitcoin network currently consumes as much energy as 23 coal-fired power plants and is growing. By the end of 2022, the Ethereum network will transition to a proof-of-stake (PoS) rather than a proof-of-work (PoW) network. The crypto market will no longer need miners using ever-increasing computing power to solve complex, algorithmic puzzles to validate transactions on the blockchain ledger and generate new coins. 

The evolution of Ethereum 2.0 and the transition to an environmentally sustainable model make Ethereum a top investment choice for the long term.


Reviewed and edited by Albert Fang


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Article Title: The Future of Ethereum

https://fangwallet.com/2021/10/11/the-future-of-ethereum/


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