Ethereum celebrates its 6th birthday
Today, its 6th birthday celebrates the world’s second largest currency in capitalization – Ethereum. This blockchain technology has become a center for DeFi, DAO and NFT projects since its release.
The first test version was deployed on July 30, 2015, and known at the time of release as Frontier. Since the creation of the Ethereum network to date, a huge number of various changes and events have been experienced, but this did not place the ETH coin in second place in the world in terms of market caritalization, which today amounts to $ 281 604 486 918.
The opinion of many world analysts is that we will no longer celebrate this anniversary of the famous coin. Over time, the network will achieve the necessary updates and switch to proof-of-ownership technology, that is, Ethereum 2.0, which will make the network faster and more energy efficient. The Ethereum blockchain has already released many updates on the way to its older version 2.0, and in early 2020 we should receive a fully functional version.
How did Ethereum succeed?
A separate merit in achieving such success is the decintralized financing in the Ethereum network, because over the past year DeFi have gained city potential and increased their own capitalization. Protocols built on the basis of Ethereum are estimated at amounts exceeding $60 000,000, but 1.5 years ago this amount did not reach $4 000,000. However, the increase in capitalization entailed problems, since the developed network was calculated only for 15 transactions per second. The huge number of smart contracts built on the Ethereum blockchain significantly increased the processing time for transactions, which also affected the transfer fee.
DappRadar reports that NFT sales since the beginning of 2021 amounted to $2.5 billion – most of the NFT tokens are built on the Ethereum platform. This suggests that the Ethereum blockchain occupied more than 60% of the capitalization of unimaginable tokens. Also, the reason for the huge popularity of this blockchain is decintralized autonomous organizations (DAO). In 2016, the ETH network lost millions of Ethereum coins as a result of an attack by hackers, but this did not affect the further development of the network. It was thanks to DAO that the conquered authority of the blockchain was undermined, which led to the division into 2 camps, which was when the Ethereum Classic appeared.
Today, the network has a huge number of users and great authority, and despite significant shortcomings, such as scalability and high commission, Ethereum fans believe that version 2.0 will be able to eliminate all existing problems and shortcomings. Now ETH is trading around $2 335 and amounts to $ 281,604,486,918 of market capitalization.
Some technical developers are confident that if everything goes along the planned path, then by the end of this year, version 1.0, based on PoW, will be able to interact without problems with version 2.0 on PoS. This suggests that the previous EIP 3554 update will not have to be activated, because it was then that ETH production on the video cards will be finally closed, just as ASIC did. But there is also a certain problem of linking the ETH rate to the BTC rate, which will be weakened by the complete transition to model 2.0. When the next updates still go online and the blockchain is updated to 2 versions, the ETH coin will be able to reach new peaks.
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