The Cryptocurrency Market Is Exploding, What’s Next for Ethereum?
What is Ethereum?
Ethereum is an open-source, public, blockchain-based distributed computing platform featuring smart contract functionality. It provides a decentralized Turing-complete virtual machine which can execute scripts using an international network of public nodes.
The Ethereum system was designed to be resistant to the usual kinds of computer problems that the Bitcoin system has faced. The Ethereum System is decentralized and distributed across multiple nodes globally, rather than just on one node like many other cryptocurrencies.
How Ethereum Competes with Bitcoin
Bitcoin has been the most dominant cryptocurrency in the market for a long time. In this article, we will compare Bitcoin and Ethereum to understand how Ethereum is more competitive than Bitcoin.
The main comparison is about mining. Bitcoin mining relies on a concept of “proof-of-work,” which involves computers confirming transactions by solving complex mathematical problems. On the other hand, Etherum mining relies on a concept of “proof-of-stake” which validates transactions based on a person’s balance of coins.
This means that bitcoin miners need special computers and bitcoin mining equipment to mine bitcoin, while Etherum miners just need an internet connection and some ETH tokens in their wallet.
Ethereum is a cryptocurrency and smart contract platform which allows developers to build decentralized applications.
Ethereum competes with Bitcoin by providing a decentralized Turing-complete virtual machine called the Ethereum Virtual Machine. It also has an internal currency called ether which provides the incentive for miners to maintain the network.
Can Ethereum Reach 100k
One expert on the panel, Sarah Bergstrand, estimated ETH could reach $100,000 by 2025. She mentioned the fact that Ethereum is more than just a cryptocurrency and is also a decentralized software platform. People can use Ethereum to launch their own cryptocurrencies or to create new apps. One of the panelists stated that if it reaches that point, “we’re going to see a lot of people getting really rich.”
In a recent Forbes article, a panel of crypto experts including Sagi Bakshi and Lex Sokolin predict that ETH could rise as high as $20k before the end of 2025.
This prediction is based on the fact that ETH is currently trading at about $3600.. The experts have predicted that Ethereum’s price will be linked to interest in ICOs and smart contracts which are powered by ETH. They say this interest will drive demand for ETH up in the coming months.
Ethereum has been undergoing a series of upgrades this year, and the next one might be the biggest one yet.
The issue with current Ethereum blockchain is that it can’t handle capacity to process transactions as well as its decentralized counterparts such as Bitcoin. EIP-1559 is an upgrade that will overhaul Ethereum’s transaction fee system, which will help increase the capacity of Ethereum’s transaction processing capabilities.
Investors await EIP-1559 eagerly because their hope is that it will result in more users and investors joining Ethereum’s network.
The future of ETH
The biggest upgrade being eyed by investors is EIP-1559, which will overhaul the transaction fee system use. This will be done by implementing a cost-based model where the transaction fees are calculated in function of the size or complexity of the contract.
Some experts believe that ETH will be around forever. However, the future of these digital assets is unclear.
The Ethereum blockchain is constantly upgraded to meet the needs of its stakeholders. The next milestone may be a hard fork that would increase the scalability and reduce the transaction cost for users on Ethereum network.
The future of ETH is bright. These experts cite an array of upgrades that will be made to the network by 2021 that will reduce network congestion and increase scalability.
The Ethereum 2021 roadmap consists of Plasma, Casper, and Sharding upgrades to the blockchain. This will not only reduce the issues currently being faced with network congestion but also increase its scalability. With these new updates, the Ethereum ecosystem is set to become a leader in Blockchain-based Dapps.