Ethereum, a frontrunner in the world of decentralized applications (dApps), has left an indelible mark on the cryptocurrency and blockchain ecosystem. Its impact remains unparalleled. Now, let's delve into seven key reasons why Ethereum holds the potential to become the global blockchain for all blockchains.
1. Largest Blockchain With A Strong Use Case
At the moment, Ethereum has an incredibly powerful use case. At a current market cap of $198.54B, it can be seen as the world’s first viable attempt to build a global, decentralized economic network that operates outside of the traditional financial system. Not many other chains are as forward thinking as Ethereum. Ethereum’s blockchain protocol can be applied to nearly every financial system. The network can process hundreds of transactions a second.
Being the most decentralized network on the planet, Ethereum can be used to create custom digital identity systems, community currencies and more. This is why Vitalik Buterin, the founder of Ethereum, sees blockchain technology as something “critical to global digital human rights”.
2. Best Industry Standard With ERC 20 Tokens Domination
Ethereum is extremely competitive among blockchains, and the use cases for blockchains are only as competitive as their application development platform. Ethereum is at the top of the line. The Ethereum smart-contract technology allows developers to easily create custom blockchains.
More importantly, Ethereum runs the most popular ERC20 token standard, the ‘Ethereum protocol’ is the only standard that allows blockchains to transact directly in the Ethereum network. In other words, Ethereum allows users to “do anything that a bitcoin user can do”, and is the “global standard of choice” for dApps.
3. Ethereum Transition From Proof Of Work POW To Proof Of Stake POS
The recent buzz in the crypto world revolves around the shift from proof of work to proof of stake. While many are enthusiastic about the potential benefits this transition offers for all blockchains, it's important to note that Ethereum stands out as the major blockchain that has successfully implemented the new mining protocol thus far.
Moving from proof of work to proof of stake presents tremendous economic opportunities. Exploring this transition can have a significant impact on crucial issues like global warming, sustainable energy usage, and overall blockchain quality improvement.
4. Network Effects Of Ethereum Network
The larger the Ethereum community becomes, the more users will be incentivized to integrate the technology into their lives. While some blockchains are fairly divided, in terms of teams, code, and developers, Ethereum is attracting the most people. The user-base is incredibly loyal.
The Ethereum ecosystem has grown leaps and bounds. No other chain has so much around its base chain, side chain, L2 chain
Ethereum has emerged as king of Alts and it no longer loses its store value.
5. Ethereum Has A Globally Accepted Strong Technology Leader
The technology behind Ethereum is exceptionally advanced. This is Because the Ethereum community has a leader that has brought Ethereum from a small, niche block chain to an industry standard. Not only that, but Vitalik Buterin is an incredible blockchain expert and a true visionary. He’s been one of the first people to really define the idea of the decentralized economic system, and he’s done it well.
Ethereum has garnered significant admiration due to Buterin's unwavering dedication. Remarkably, a greater number of individuals are actively involved in Ethereum compared to Bitcoin or any other blockchain technology.
6. Ethereum Is Home To Layer 2 Blockchains
While there are several layers to Bitcoin, and many layer 2 blockchains, Ethereum has been the home for the strongest layer 2 Blockchains in the crypto space. It is home to the Ethereum-powered Metropolis network. Ethereum has a large audience, not only in crypto space, but in business and regular people. Ethereum’s transparent and open-source nature makes it a great testbed for the next generation of blockchains.
Ethereum boasts a capable team to achieve these goals, making it not just a passing trend but an imminent force set to dominate the world of blockchain.
7. Ethereum Is A Friendly Economic System
Economic systems are founded upon principles. These principles, in turn, are shaped through a defined process. When an economic system embraces democracy or participatory decision-making mechanisms, the outcome is community control. In this envisioned world, economic systems cease to be exclusive domains of select individuals or corporations and become shared by all. This concept mirrors historical instances like the Middle Ages and finds resonance in digital currencies through decentralization and trust. Hence, the Ethereum community warmly embraces the idea of genuinely distributed capitalism as they perceive it as the most sustainable long-term economic model. Gradually, our world is gravitating towards adopting this new economic paradigm.
In conclusion, Ethereum stands out as the undeniable global blockchain solution. As the pioneering decentralized platform, it offers a comprehensive remedy to the current challenges faced by the global economy. In fact, Ethereum possesses all the necessary components to transform blockchain into an omnipresent force permeating every aspect of life.
Disclaimer
The information presented in this article is the author's opinion and it's for enlightenment purposes. It should not be regarded as financial advice.