Ethereum already has a considerable number of use cases, but more application areas have yet to be explored.
Original title: “Viewpoint | 24 Reasons Why Ethereum is “Seriously Underestimated””
Written by: @CroissantEth
Compilation: South Wind
Ethereum is severely undervalued for 24 reasons.
Smart contract
Once certain conditions are met, the smart contract will automatically execute the code.
ETH is the earliest form of “programmable currency” that users can rely on to create a decentralized “currency Lego” that is resistant to censorship.
So as to achieve things such as lending, exchange and more!
Stablecoin
Ethereum is home to many stablecoins, and these stablecoins already have huge use cases:
USDT market value: 62 billion US dollars
USDC market value: $25 billion
DAI market value: $5 billion
TUSD market value: 1.5 billion US dollars
The use of these stablecoins in DeFi (decentralized finance) is very popular, and VISA will soon accept the use of USDC for transaction settlement.
The market value of USDC this year has increased from 4 billion U.S. dollars to 25 billion U.S. dollars.
DeFi
The explosive growth of DeFi is due to its attractive yield, flexibility and non-custodial properties .
Through DeFi, we can eliminate middlemen and “become our own bank.”
As we know today, DeFi is restructuring the financial industry, and it will not stop.
Above: The growth of the total locked value (TVL) in DeFi. Source: defipulse
dApps
Among the top 100 cryptocurrency projects, a total of 94 projects were developed based on Ethereum. There are currently more than:
These protocols usually include many further use cases involving ETH, create a foundation for the Web 3.0 economy, and they are decentralized & open to anyone.
Developer
To many people’s shock, Ethereum has gained a lot of attention from developers. Ethereum is absorbing talents from all over the world at a speed that we cannot understand.
Since the third quarter of 2019, more than 300 developers have joined Ethereum every month, and the growth rate has even surpassed that of Bitcoin.
Above: Since Q3 2019, Ethereum has had an average of 300+ developers joining each month.
Above: The number of monthly active developers of major public chain projects, among which Ethereum far exceeds other public chains such as Polkadot, Cosmos and Bitcoin.
insurance industry
The off-chain oracle & Ethereum provide an elegant solution for the trillion-dollar insurance industry .
For example, smart contracts can automatically settle claims and provide insurance for farmers all over the world. This process is fair and efficient, because many people today do not even have the option of getting insurance.
Above: “A pilot project is providing crop insurance to more than 10,000 farmers in Kenya. The project is driven by Ethereum and Chainlink.”
Interoperability
Interoperability is also a major theme that many people underestimate Ethereum.
Through cross-chain accounts and interoperable liquid staking derivatives , Ethereum will release liquidity that may reach hundreds of billions of dollars from many PoS blockchains .
Above: At the time of writing, the prices of native tokens, staking (staking) rate of return, and the total value of staking (and the amount of staking as a percentage of the total circulation) of the major PoS public chains.
NFTs
NFTs (non-homogeneous tokens) on Ethereum have gained a lot of attention, attracting attention including GameStop and Twitter.
NFTs are “unique” tokens that can be used by creators to tokenize various things (not just artworks).
If one thing is certain, it is that NFTs will always exist.
Meta universe
NFTs on Ethereum will provide support for “Metaverse” and will be promoted by virtual reality technology pioneered by the world’s largest company.
Here, we are talking about augmented reality, virtual advertising space, tokenized in-app purchases, etc…
Digital land
Unlike land in the real world, “digital land” is not limited by physical space, and can be tokenized and used to construct all economic activities owned by players.
If virtual reality becomes more common, virtual land may eventually evolve into a trillion-dollar market.
DAOs
DAOs ( Decentralized Autonomous Organizations) are entities composed of any number of individuals who maintain team decisions in a distributed manner .
Individuals can use tokens to vote and propose ideas on how they want the agreement to change.
DAOs have become the largest autonomous community we know of.
Synthetic assets
Synthetic tokens provide almost any value stream you can think of. Oracle will feed block chain monovalent synthesis relayed to the assets protocol.
This allows people to trade stocks, precious metals, commodities, etc. on the stock market by means of synthetic tokens!
Above: Synthetic assets on the Synthetix platform of the DeFi synthetic asset protocol.
Borrow
On Ethereum, the DeFi lending agreement has actually brought some considerable data.
There are tens of thousands of borrowers who use these agreements to obtain loans without the need for any bank, and they often achieve borrowing with better transactions.
“Three Halves”
This concept describes that in the next 12 months, with the transition of Ethereum to PoS, ETH will experience the equivalent of 3 #BTC The supply shock is halved.
EIP-1559 will also play a big role in reducing the selling pressure of ETH in the future.
EIP-1559
EIP-1559 can be said to be a UX (user experience) upgrade, which is expected to be implemented soon, and is likely to actually turn ETH into a “deflationary” asset.
.
EIP-1559 is designed to have some positive impacts on the value of the Ethereum network and ETH, including:
Clearly bind ETH to the usage of Dapps: the more Dapps are used, the more ETH is “destroyed” as a transaction fee;
Reduce the transaction waiting time of the Ethereum network, eliminate the uncertainty of the fee market, make Gas fees more predictable, and promote the adoption of Dapps by developers and users;
Add a “limited supply” narrative similar to Bitcoin for ETH.
PoS
Ethereum will transform from PoW (Proof of Work) to PoS (Proof of Stake).
Users can earn interest income by staking ETH and become a node of the Ethereum network.
It is the fastest-growing agreement and is about to provide investors with substantial dividends: at the time of writing, more than 6 million ETH were pledged, valued at more than $14 billion.
L2 plan
There are currently many projects dedicated to Ethereum L2 expansion solutions, trying to elevate Ethereum to the next level of scalability.
These L2 solutions focus on highly complex topics such as Optimistic Rollups and ZK-Rollups.
They are expected to increase the throughput of Ethereum to 2000 TPS.
Ethereum’s single sign-on
A unique feature of NFTs and other applications on Ethereum is that the tools can be easily integrated into various applications using simple login options.
This will be the basis for the transition to Web 3.0.
Creator economy
Intellectual property and content of tokens, particularly in the field of open source is a kind of support creators and enable them to get a way to return.
This gives creators new power and may push the open source field to become a complete creator economy.
Universal market access
Today, many people do not believe in the possibility of the concept of “universal market access.”
But on the Ethereum blockchain, it opens a world for individuals around the world, provides a censorship-resistant environment, and opens up a new financial world for people who currently cannot access financial services.
use
Unlike the last encryption cycle in 2017, the blockchain at that time did not gain current real-world adoption.
IOT (Internet of Things) and DLT (Distributed Ledger Technology) will have a huge impact.
VISA, PayPal, and Amazon are just some of the top companies that are interested in Ethereum technology.
Above: As of January 2020, real-world companies using Ethereum technology.
Game industry
Whether it is from the perspective of “tokens” or “collectibles”, Ethereum and the gaming industry are complementary .
GameStop is integrating NFTs on a large scale and entering the field of e-sports.
Can you imagine using your wallet to connect to your favorite game and own the items in the game in the form of NFTs?
Ethereum 2.0
The Ethereum 2.0 upgrade will introduce sharding, PoS, and other functions to enhance network security.
If successful, this upgrade will bring a whole new level of sustainability and scalability to Ethereum.
In addition, with the widespread use of the Ethereum network, the security of the network will be significantly improved.
supercomputer
Ethereum is a world supercomputer. Vitalik borrows the concept of Bitcoin and adds a programmable base layer for developers.
This will continue to add a whole new level of functionality to the blockchain as we currently know it…
And currently we haven’t even touched the fur.
Source link: rattibha.com
