On Friday the 19th of February, 2021, the famous bitcoin makes headlines after hitting a $1 trillion market value. For believers, the news was always a foreseeable future. On the other hand, albeit the arguable runner-up - Ethereum, doesn't have a capped supply, it reaches a live market cap of around $222 billion, with its price reaching the highest.
This is already a good sign for Eth fans. Considering, the live market cap has risen from somewhere around $20B a year ago.
Much of Ethereum's success revolves around how it is designed and how the design can be utilized to further execute dream-like projects in real life. I, for one, lost all of my belief in Eth when Joseph Lubin explicitly said that Etheruem wasn't designed to be scalable and Vitalik nodded silently in agreement.
ICO prospectus: "Build scalable apps on Ethereum."
— grubles (
Mod: "Youre saying the concept of launching something that doesn't scale then rebuilding it as something thats scalable was part of initial the plan."
Lubin: "We knew it wasn't going to be scalable for sure."
Vitalik: *nods* pic.twitter.com/MBSFkQeugj) September 20, 2019
The viral tweet had a noticeable effect on the coin, and many turned away from the runner-up, just like myself. Although, I'd be lying if I did not appreciate what Eth has become today and how much it has facilitated in the crypto world.
Fast forward a few months and crypto kitties, an eth blockchain-based game, completely overcrowds the blockchain highlighting one of the greatest issues with Eth. On the flip side, it also exposed the staggering size and shapes of use-cases the blockchain could and should provide.
Fast forward to 2021, a similar problem is once again highlighted in the bull run. Incredibly high gas fees, followed by a crippling movement of transactions keep lighting up like an SOS light.
While all the red lights are still on, Ethereum keeps pumping, rather arrogantly. Almost as if the investors have chosen to ignore what is already out there. The reason? Eth 2.0
What ethereum is trying to achieve through the eth 2.0 beacon chain is a direct result of all that has happened, and the lessons learnt from it. While Ethereum transactions are "mined" to authenticate, a cut in form of "gas fees" is paid to the "miners", in eth 2.0 the game is flipped.
Miners are substituted with stakers. The stakers authenticate the transactions and are rewarded for it. Essentially, giving investors, traders, hodlers, a second layer of profits with a deeper level of involvement.
It should make ethereum more scalable. More transactions could take place, with a lower fee and faster.
At this pace, and the questionable success of eth 2.0, ethereum could very likely be heading towards its own live market value of $1 trillion. However, it is yet to be decided, considering other upcoming chains giving ethereum a solid challenge.
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