About the future development trend of Ethereum: will Ethereum become the future of blockchain?

Feb 01, 2023 | wjb news

Will Ethereum become the future of blockchain?Ethereum is one of the top cryptocurrencies, second only to Bitcoin in terms of market value and overall popularity. The next few yearsETHThe roadmap is particularly exciting and will become a paradigm shift in our conceptualization of cryptocurrency models.

Ethereum represents a sustainable, function oriented cryptocurrency approach that will supportDeFiIn the future. Ethereum will also provide us with more benefits in the future. Now let's discuss the future development trend of Ethereum with the editor of World Chain Finance.


What are the differences between Ethereum and other blockchain platforms?

Ethereum is a decentralized open source blockchain, which means distributed public account verification and recording of all transactions. Each member of the network has a copy of the same account book as all transactions in the past, but the ecosystem is not managed by any central political party.

The local digital token of Ethereum network can be used for investment, payment method, settlement of smart contracts and payment of relevant transaction fees orGascost.

The key difference between Ethereum and Bitcoin is that the platform can not only trade cryptocurrencies, but also conduct more complex financial transactions.

Another notable feature is its smart contract function. Much like any other contract, smart contracts allow the parties to agree on the delivery of future goods or services without the need for intermediaries. The contract is encoded on the blockchain, and the agreed amount of Ether is delivered to the appropriate party immediately after the contract conditions are met.

The smart contract exists in the blockchain and operates completely according to its specific rules. Ethereum describes it as similar to a vending machine. If they have enough money, they will give you the right things. Smart contracts can hold funds like Ethereum accounts, allowing the network to make effective agreements and transactions without a third-party entity.


What will Ethereum look like in the future?

With the current and planned improvement of Ethereum blockchain, multi chain may become redundant, and Ethereum will become the leading chain of transaction volume. But again, it may not necessarily be a multi chain fatal blow. On the contrary, the two can establish a symbiotic relationship. With the improvement of Ethereum efficiency, cooperation with multiple chains can further shorten the waiting time.

For example, multiple blockchainsBSCSolanaandPolygonetc.L2The chain is developing, and each blockchain has its unique advantages and disadvantages. These advantages and disadvantages promote the development of multi chain, and tell us that multiple choices are better than blockchain that dominates the market, especially in authentication,NFTWhen non monetary items begin to appear, various blockchains are used.

In the case of multiple chains, competition has retreated to the second tier, and cooperation to provide the best quality has become a top priority, ultimately improving the user experience. Compared with the early stage of the Internet, there was a separate network between the university and the office, while the universal Internet was still in its infancy. Over time, every technology will be improved and matured until it is ubiquitous, and blockchain is no exception.

Use the most recentDeFiThis trend urgently requires stable and secure infrastructure. Ethereum and Multichain will eliminate some of the most common problems in the blockchain ecosystem, paving the way for widespread adoption and decentralized economy in the future.


How does Ethereum shape the blockchain industry?

ButerinsinceseventeenSince the age of, he has been fascinated by blockchain technology. At that time, he co founded a Bitcoin magazine with others. He imagined a blockchain platform, which provided more possibilities and uses than Bitcoin, and finally became his vision for Ethereum.

"I think[People in Bitcoin Community]It did not solve the problem correctly. "ButerinPodcast in The EconomistBabbageGo up and say. "I thought they were processing individual applications. In some Swiss Army knife agreements, they tried to explicitly support each[Use Case]。”

Although inspired by Bitcoin, Ethereum is a completely different type of digital asset. Bitcoin is mainly used for value storage, but the concept behind Ethereum is applications other than decentralized financial services.ETH-heads”Think of it as a "computer" rather than just a digital asset, and it may completely disperse the numbers.

The Ethereum network is not a centralized server, but a supercomputer network run by volunteers from all over the world. Ethereum enthusiasts hope to access these nodes globally, just like the Internet today.

Another key difference between Ethereum and Bitcoin is that Ethereum allows and does not allow transactions. Unlicensed transactions allow any computer on the network to verify transactions, but the licensed transactions can only be confirmed through a group of selected nodes, and will not be exposed to the rest of the network.

Ethereum is called the second generation blockchain, which means that the distributed ledger network provides additional built-in functions that support more complex functions, such as smart contracts and other functionsDApp

Smart contract and EthereumDAppEncourage the developer community to build new applications and broaden the use of blockchain, which is regarded as a revolutionary technology when it appears.

Although Ethereum has more uses than Bitcoin, it still ranks second as a cryptocurrency. However, with the positive growth of the network, Ethereum will surpass Bitcoin's current dominant position in the near future, and its future vision and development team have triggered many speculations.


Ethereum's vision for the future

Ethereum is one of the most important blockchain ecosystems in creating a truly decentralized Internet, but decentralized expansion may be very difficult. Despite numerous challenges, the goal of the network is to become a smart contract anddAppMillions of people can benefit from it.

As we all know, Ethereum has proved that the ecosystem is working, because it has many people to manage digital assetsdAppAnd smart contracts. This makes advanced use of cryptocurrencies possible, such asNFTAnd decentralized finance. However, EthereumoneIs not designed to support the growing transaction level it sees, which leads to network congestion and high costgascost.

EthereumtwoThese problems will be solved for large-scale adoption to make Ethereum scalable, safe and environmentally sustainable. It will make transaction processing more efficient, achieve thousands of transactions per second, and significantly reduce costs.

The Ethereum ecosystem is one of the most advanced blockchain technology platforms on the Internet, and the development team keeps updating it. But the future of blockchain mainly depends on London Hard Cross and EthereumtwoThe success of.

In a few years, Ethereum may become the pillar of the crypto asset ecosystem and accommodate most blockchainsdApp。 According to Goldman Sachs(GoldmanSachs)In a report, the company calls it "Amazon Information", and Ethereum is likely to exceed the most popular value storage method of Bitcoin.

EthereumtwoAt the time of writing this article, it has more thanone hundred and six$100 millionEther, which further proves the support for the network. To EthereumtwoThe smooth transition of can enable the network to gain advantages in resisting the monopoly of Bitcoin market, and lay a foundation for the institutions and large-scale adoption of Ethereum.


Two predictions for Ethereum

First of all, I used to strictly evaluate the consistency between use cases proposed by customers and decentralized technologies. If not, I tend to oppose the deployment of blockchain. Almost all standards are faster and cheaper than decentralized applications. No more. Now, value proposition has become the market access for hundreds of billions of frontier investments.

Secondly, with the development of use cases, Ethereum will go beyond its core functions and develop special tools and systems to support these use cases, as it has done on the Internet. Content transmission network, advertising network and multi protocol label switching(MPLS)In order to help the Internet handle a large number of voice and video, routers have emerged. Similar situations can occur in the blockchain ecosystem. We saw a lot of people who were trying to help establish decentralized autonomous entities(dao)And non functional ecosystem start-ups. There are more on the way.

Some idealists (including me) in the Ethereum ecosystem will be painful. The truth about the Internet is that it is the most successful network in history, but it is far from the early ideal. It is now subject to restrictions, national barriers, insecure security systems and the disclosure of sensitive personal information"Privacy" technology segmentation. Compared with our original global barrier free decentralized network, it is a bit bad, but it is impossible to go back to the past.


Ethereummerge”Five years of preparationConfigure its blockchain fromConfiguration of "proof of effort"(Bitcoin also uses this configuration)Change the name to“Equityprove”Configuration of.As a result, the energy consumption of the Ethereum network has been reduced, and the value of Ethereum has been improved. We have reason to believe that Ethereum will be applied in more fields in the future, bringing more convenience to our lives. Software is devouring this, and Ethereum will annex the global economy. I believe that this will enable us all to become bigger and better stakeholders in our common future.