Ethereum
The “Ethereum Age” is coming for 5 key reasons
Read U.TODAY on
Google News
Despite some skepticism, Ethereum has five compelling reasons for a bright future, presented from a balanced perspective perspective.
-
Superior ecosystem compared to Bitcoin’s L2:
While Bitcoin Layer 2 (L2) applications are growing, they currently lag behind Ethereum in terms of functionality and user experience. Ethereum has established itself as the preferred platform for developers, largely due to its more mature ecosystem and wider acceptance. Despite the noise around Bitcoin’s application development potential, Ethereum remains the gold standard for developers looking for robust, tested, and versatile solutions.
-
Regulatory challenges may not be crucial:
There is much talk about the possibility that the United States Securities and Exchange Commission (SEC) will classify Ethereum as a security. However, the outcome of this regulatory review still remains uncertain. Even though Ethereum faces some regulatory hurdles, its critical role in the finance and technology sectors – buoyed by significant support from big tech asset managers and traditional finance (tradfi) – suggests that it could withstand potential challenges.
-
Solana Scalability and Concurrency:
Solana has been considered a more scalable blockchain platform with faster application growth. However, its scalability advantages come with technical risks and less customer diversity compared to Ethereum.
-
Adoption by major financial players:
Large financial institutions like Visa, MasterCard, JP Morgan and Citibank have explored blockchain solutions separate from Ethereum. Still, Ethereum’s interoperability and established network could eventually attract these giants. Blockchain’s ability to operate globally and trustlessly makes it an attractive backbone for future financial operations.
-
Symbiotic relationship with layer 2 solutions:
There is a misconception that the value lies primarily in layer 2 technologies rather than Ethereum itself. In reality, Ethereum and its layer 2 solutions have a symbiotic relationship. The success of applications running on the Ethereum network improves the value of the core platform, similar to how railways benefit from the business they enable.
About the Author
Arman Shirinian
Arman Shirinyan is a trader, crypto enthusiast and SMM expert with over four years of experience.
Arman strongly believes that cryptocurrencies and blockchain will be of constant utility in the future. Currently, it focuses on news, articles with in-depth analysis of crypto projects and technical analysis of cryptocurrency trading pairs.