an ultra-dominant future on the blockchain?

It is believed that the success of the Ethereum blockchain in implementing “The Merge” will have a wider reach than the Bitcoin blockchain. IF the merger succeeds, it could even eclipse the Bitcoin blockchain, observers added.

Ethereum Concentrating a Huge Number of Blockchain Applications

The Ethereum blockchain is an important part of the blockchain economy that could usher in a new internet era. This week, Ethereum is changing its way of working, which could well lead to a revolution.

Ethereum’s cryptocurrency (ETH) accounts for about 20% of all virtual currencies, behind bitcoin’s 40% share. Unlike bitcoin, Ethereum can be used for many applications. Ethereum was created to support code rather than just value exchanges like Bitcoin’s blockchain.

To work, the Ethereum blockchain relies on 9,000 computers (nodes) on the planet that form a virtual machine that can be accessed worldwide through the network. The ease of use of the Ethereum network makes it the blockchain of choice for many developers who want to develop their applications, either via NFTs, play-to-earn or metaverse. “Anyone can program a new asset on Ethereum,” said Simon Polrot, blockchain expert and former president of the Association for the Development of Digital Assets (Adan). Therefore, many believe that Ethereum will play a pivotal role in future metaverses.

According to Simon Polrot and Manuel Valente, 90% of the value of all NFTs issued to date is concentrated in Ethereum. The French company Sorare recently entered into a partnership with the NBA, they have recently published sports miniatures on the Ethereum blockchain.

The famous monkeys of the “Bored Apes Yacht Club” have attracted stars such as Paris Hilton, Eminem and Neymar. They have also sparked wild speculation since their launch on the Ethereum blockchain. “It is around Ethereum that most of the developments in the cryptocurrency ecosystem are concentrated,” says Simon Polrot.

Looking at DeFi, we make the same observation, it is Ethereum that allows the development of a large number of projects. Apps in the DeFi or decentralized finance domain make it easy for people to borrow and lend cryptocurrencies.

“Ethereum is a bit like Windows or macOS. It is the operating system on which we can build our applications,” sums up Manuel Valente of Coinhouse, a French company that aims to become “the future European crypto bank”.

Will there be any new updates?

DeFi Llama (a specialist site) estimates that Ethereum accounts for about 59% of all value captured in current DeFi business. Its direct competitors are BSC, which is made by Chinese crypto giant Binance, and Tron.

Some rival “blockchains” have conquered a certain audience, such as Polygon, Tezos or Avalanche, the last born that generates a lot of interest. But Ethereum is in a strong position and “if it manages to transform, it could become ultra-dominant,” explains Manuel Valente.

In order to achieve its goals, Ethereum will have to overcome a new challenge in 2023 or 2024, according to the expert. Ethereum currently processes 20 operations per second, but this is still considered too low for what the blockchain hopes to achieve. This will require her to undergo another change—perhaps a mutation—to increase the number of transactions her system can process per second.

The “The Merge” update will forever change the way validators perform operations. Validators no longer need massive computing power, instead they have to pay 32 ETH as a deposit, or about $50,000 at current prices. This deposit may be forfeited if a validator violates protocol or engages in other inappropriate activities.

But what if this update fails? Maybe because of an undiscovered flaw in the protocol? Element of answers within a few days, even a few hours…

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