On July 30th Ethereum had its 6th birthday. Only a few cryptocurrencies have managed to stand the test of time and only Ethereum has managed to stay on top of the game and rank second to Bitcoin. In today’s article, we are going to take a look at the things Ethereum has accomplished and what it is going to achieve in the near future.
Ethereum - ICOs, NFTs, and DeFi
Ethereum is home to a thriving tokenized economy. Everything started with the era of ICO that started as the wild west of decentralized fundraising and became more regulated and safer after the year 2017.
But the token economy is not the only thing Ethereum has created. Decentralized finance is one of the most promising technologies built on top of the Ethereum blockchain. While most investors use liquidity mining, lending, and token swaps on decentralized exchanges, more mature use cases are in the making. Insurance companies could be built entirely on a decentralized protocol that would not only save costs, but would also run in a transparent manner.
Last but not least non-fungible tokens are the most recent revolutionary technology. From collectibles to music albums and digital art. With NFTs all of these things become rare and unique items.
London Upgrade will commence soon
During August 2021 the so-called London upgrade will commence as a hard fork. London will introduce EIP-1559 which is maybe the most discussed and anticipated improvement proposal.
It is expected that EIP-1559 will make fees for Ethereum transactions less volatile and more stable. Resulting in lower overall fees for users, but also a burn mechanism that will reduce the fee for the miners and destroy a small portion of ETH per transaction. Some analysts are speculating that this might positively impact the price of Ethereum and makes it scarce even though Ethereum has no finite supply.
Ethereum 2.0 is in the making
The year 2022 and therefore the 7th birthday of Ethereum will evolve all around the shift to ETH2. Ethereum 2.0 will introduce proof of stake and sharding, which will allow making use of sidechains that will run specific applications.
The ETH2 main chain is expected to run faster and scale better than its predecessor that is still dependent on mining. In the end, ETH1 and ETH2 will merge and the old chain will become a shard of the new one.
The last 6 years have been more than exciting for Ethereum and with all of these things in the making, the next 6 years will be a fun ride for sure.