Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency Trading => Topic started by: jennysmith on February 12, 2020, 09:00:16 AM
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What are the six major factors to grow Ethereum?
Conner noted that the following six elements would drive the growth of Ethereum throughout the next 12 months:
The rapid rise of decentralized finance (DeFi)
Privacy solutions on mainnet
Second-layer scaling
Ethereum 2.0 launch
Superior monetary policy with Ethereum 2.0
The struggle of competitors to combat the growth of ETH
All of the abovementioned factors align with the vision of the Ethereum open-source developer ecosystem to evolve the blockchain network into a more efficient protocol in processing data.
Throughout the past year, DeFi has seen explosive expansion. Data from DefiPulse indicate 3.1 million ETH are currently locked in DeFi apps. That is equivalent to $589 million at the price of ETH at $190. For DeFi to work seamlessly, which includes virtually all financial services including loans, payments, derivatives, and more, scalability, ETH 2.0, and better monetary policy are crucial.
Scalability is important because, with DeFi, confidential information such as payment data are processed on-chain. As the number of users increases, it may overload Ethereum, causing the network to clog. Improvements in monetary policy and Ethereum 2.0 are more obscure concepts for many users and investors. But, they are highly necessary especially if the usage of DeFi increase even more from current levels.
Monetary policy, or as some investors describe it as economic bandwidth, refers to the total supply of Ethereum and what percentage of it is used in decentralized applications (DApps).
If the supply of Ethereum is not sufficient to support the fast adoption of DeFi, Lucas Campbell at Fitzner Blockchain Consulting explained it places a burden on the Ethereum network to withhold all of the demand.
Assuming that DeFi will continue to be the primary use case of Ethereum throughout the years to come, scalability is basics and other elements such as monetary policy or economic bandwidth will have to improve similarly.
Conner emphasized that Ethereum has all of the elements to become successful in supporting significant demand for DeFi, which would allow it to retain the position as the top smart contracts blockchain protocol in the global market.
The “weakness” of ETH
Compared to smaller blockchain networks with tighter developer communities and well-funded operations, it is generally harder to propose, implement, and integrate changes into the Ethereum blockchain.
The same challenge exists for every major blockchain network including bitcoin. As such, one may consider that Ethereum is at a disadvantage over smaller blockchain networks in the speed in which it can implement new changes.
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It is necessary to buy ethereum. :)
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I want to quickly see the updated ethereum and feel its practical improvements. I consider this coin one of the most reliable and best cryptocurrencies. Of course, today it is a little outdated and Ethereum 2.0 should solve these problems.