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Ethereum here to stay or to go?

Since the talks are on the street the gas fees of Ethereum could be the end of the DeFi systems as we know. Latest news shout out Binance CEO attacks Ethereum not becoming a reliable stability network for DeFi projects because its too expansive.

This is really the Achilles Verse of Ethereum. And the problem was not solved with changing into staking. Therefore Ethereum seeks to solve the problem with the Berlin hard fork. 

One of the undergoing problems with Gas is the right for miners setting the fees on their own behaves. With this upgrade people hope that the fee range is not unlimited anymore and there is a limit. 

Introducing with Berlin the EIP-1559 which describes a fee market change for the current ETH 1.0 blockchain. More specifically, it introduces a transaction pricing mechanism that “includes fixed-per-block network fee that is burned and dynamically expands/contracts block sizes to deal with transient congestion.”

This model fixes fees for a block which is in a dynamical library. So it could save fees by reducing to a fix average range which is much cheaper than the existing model.

 

Another advantage of the new upgrade is the DDoS protection a lot of nodes could be targeted in the network, since Ethereum runs his network on own .eth domains and now browsers can also show contain of these .eth domains. This only effects the ETH 1.0 network, where all DeFi and Ethereum operations actually still running on. The beacon hardfork and adoption of ETH 2.0 on Proof of Stake will take a longer road until it is ready to take over ETH 1.0. 

Another hot topic is the first ETF on Ethereum

CI Galaxy Ethereum ETF will trade on the Toronto Stock Exchange (STX) under the ETHX ticker. It will “invest directly in Ether with its holdings priced using the Bloomberg Galaxy Ethereum Index (‘ETH Index’), which is designed to measure the performance of a single Ether traded in U.S. dollars.” The ETH Index is owned and managed by Bloomberg Index Services Ltd. 

ETF will bring more danger to ETH then Bitcoin in volatility because ETH has not a high market cap and therefor it is like shaking a water glass instead of an ocean. The water glass will have heavy storms and rolling waves for an up and down rolling ship coaster.

In an Ocean, storms only stay on certain points and waves will be flatten over the sea’s expansion. Less up and downs and less risk to get right in time into silent waters instead of shipwreck before reaching the beach. So Ethereum even on low gas prices will become a rich men game.

But in the end of the day Ethereum will stay for good because of the broken markets and opportunity to jump into a new asset class of banking management and market entries no longer under the goodwill of the old financial institutes and rules. It’s like layer zero of a whole new economy which could, if it would, cut the old-world binaries but also can stay as the bridge as long if the old economy is still on hold. Against Bitcoin Ethereum will lose and more centralized over the time as the new nodes for ETH2.0 show off. But this is not a thing to be worry. We need permissions in our world. The role of independency will for now and forever Bitcoin. The role of serving interest trading on new markets models will be Ethereum and the token economy for a long time. Because ERC protocol is the native protocol to ETH. And the financial base is on a sole of Ethereum for withdrawal. 

 

Written by : Prof. (Dr.) h. c. Joerg Molt

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Crypto Stats


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin55,327 0.11 % 0.04 % 12.98 %
Ethereum2,304.7 0.54 % 7.23 % 0.02 %
Binance Coin591.31 1.41 % 17.20 % 6.90 %
Tether0.9969 0.28 % 0.80 % 0.43 %
Polkadot43.88 0.58 % 0.43 % 36.39 %
Cardano1.250 0.46 % 4.08 % 12.23 %
XRP1.420 1.19 % 8.90 % 20.40 %
Uniswap31.77 0.19 % 5.33 % 10.52 %
Litecoin260.25 0.44 % 2.54 % 2.26 %
Chainlink37.85 0.58 % 3.76 % 6.13 %