Ether Leeum: Is there a foundation?
The following is the guest post and analysis of Shane Neagle, editor -in -chief of Tokenist.
After the fertile but somewhat fraudulent coin operating (ICO) craze in 2017, Ether Leeum (ETH) is a market cap nine times lower after Bitcoin. In the last five years, Ether Lee has an average annual return. 60%It is a neck and neck with Bitcoin.
But last year, there was a noticeable change in Ether Leeum’s evaluation of rival block chains, especially Solana (SOL). Compared to Bitcoin, which has been returned 33.73%over a year, Ether Leeum has lost nearly 50%. At the current price, ETH returned to the price level in October 2023.
Immediately noticeable is that alternative steak proof proof of Solana has a large and frequent inflow, and Ether Leeum tends to go down without such a meeting. Ethereum, which represents distributed finance (Defi), has the lowest market share since May 2022.
In the meantime, Solana has doubled its market share from 3%to almost 8%since May 2022. If you think there is no shortage of 1 block chain similar to Solana
Ether Leeum will continue the slide. Is a cannibalist caused by a pure L1 chain that doesn’t depend on the L2 solution?
In other words, how do you see the foundation of Ether Leeum? Ether Lee may be ready to actually maintain or increase the defect market dominance, but will the ETH price still lack?
To try that answer, let’s first visit a big encryption picture.
What is Ether Lee’s vision?
Since the Internet has been commercialized, the basic value transmission, which is an obvious component, has been omitted. After all, why can’t eBook replace books and e -mail can replace e -mails? More importantly, why can’t we automate the contract to replace banking services such as loans?
This was a basic promotion of blockchain technology starting with Bitcoin. However, there must be three important components in order for the basic fund transfer of the Internet to be adopted according to the size.
- It must be unbelievable and removes the vulnerability of any human intervention. To be completely reliable, you need to minimize the spectrum of trust to zero.
- It must be a user -friendly, intuitive design, smooth interoperability and friction with user -friendly, intuitive design, smooth interoperability and friction, as if the smartphone is described in large quantities.
- To handle the conversion from legacy finance to blockchain finance, it is necessary to expand.
Within this framework, Ether Leeum is strongly placed as theoretical building. Recently, one of the best Ettherum developers Justin DrakeEther Lee has filtered what it means in another place of legacy human behavior.
But what is the possibility of this happen?
Is encryption actually executed?
At the face value, Ether Lee is aiming to root out a firm power network. Expecting to go without a serious friction will be exercise in the stomach. This is why we have seen continuous efforts. It breaks down the expansion of Defi service BIDEN management.
When President Trump took office and Elon Musk started the government efficiency, the entire arbitration and political space Social engineering and institutional deception. The fundamental power of such a system is that there is a lack of transparency of money flow.
In particular, the establishment is as follows.
- If the power threats, the condition is set up to include alternative power.
- In the context of encryption, the foundation of a firm force is the need for fiat transition.
- The Defi app can be useful, but it doesn’t make sense if you can’t spend money in the real world.
- Therefore, in order for the Fiat-Crypto conversion to be executed, all participants in the (block) chain must observe the conditions of the firm power.
For example, what if a person believes? Climate change To be a general fraudulent Net zero policy? Such policies support and execute funds through taxation. Exit for funding for compulsory policy will require the law to violate.
This applies to unfair or deceptive public policy.
However, if the mass adoption of the Defi blockchain is successful, Credit card To get an appropriate rival, you must comply with the law consistently regardless of the moment the law is given. Because of that DAPP usability is the same as regulation compliance.. In other words, even an unreliable system will have to be tied to religious trust frameworks.
But if so, why aren’t the firm power network implemented? Money layer On the Internet? After all, it is more convenient while enjoying complete trust in mass adoption.
After all, Ether Lee’s vision may be looking at the wall too high. But now we have a big picture of cryptocurrency isolation, so is Ether Leeum Scaling initially competitive?
Ether Leeum’s Activation Initiative
Transition from Ether Leeum’s work proof to understanding of understanding Some hackingIt can be argued that the 99% reduction of energy is worth it for scaling. In this way, Ether Lee is the possibility of becoming a global smart contract launch pad.
The approach adopted on the road relies on tier 2 solutions such as optimism, polygon, intervention, foundation, stock four, zksync, etc. to offer traffic and reduce trading fees. The lower the transaction fee, the lower the friction over the end user.
The problem is that this approach introduces a completely new friction layer, such as juggling several chains, bridges and wallets. This not only increases the barriers to entry because the average user always pursues simplicity, but also cares for the flying capital by Ether Leeum itself.
But on the front of the scaling, Vitalik buterin pointed out that the L2 approach can increase the blockchain transaction processing capacity by 17 times. The most important goal is to make Ethereum a kind of OS of Defi.
- By creating a common standard for each chain address, cross chain bridge, L2S interaction is made “under the hood” and the final castle is reduced. main Until a few minutes.
- Increase your blot (temporary data) per block from 3 to 6 per block. PECTRA upgrade. Increased blove throughput requires more L2 layers while maintaining low fees.
- To make ETH a grateful asset, buterin hopes to expand the Defi app to the first collateral.
- In addition to the combustion mechanism where ETH transaction fees are shared, ETH can be deflation assets. The current ETH is as follows: Inflation rate 0.754%, slightly lower than Bitcoin’s 0.829%.
However, because the Buterin regards personal information as a paramount, the Ethereum ecosystem must move one address per app to the default. According to him One’s own wordsThis is “an important convenience sacrifice, but my aunt is a bullet we should ask.”
In the ambiguity of Ether Leeum’s ecosystem’s convenience level, it has not yet been seen in the ambiguity of pure L1, such as Solana. judgment Deloitte survey In late 2024, 85%of consumers are “at least one step to solve personal information and security issues.” But this feelings are generally eroded when conflicting with convenience.
Ultimately, Ether Reeum must reach the stage where the user participates in the DAPP without knowing that the user uses the encryption. In these scenarios, adoption rates need to offset potential encryption isolation.
The problem Solana is already ranked first In terms of real -time trading (TPS) of 1,049, Ether Lee is ranked 17th in 14.07 TPS (1 week). Differences measured by a single mite Compared to Solana’s theoretical 60,000 tp, it can have a significant impact. Ether Lee’s roadmap is set to 100,000 TP because the blockchain is displayed on “” “.bibliography“Development stage.
Explaining all roadmap phases, users should not expect that the possibility of mass adoption of Ether Leeum will be realized by 2030. This provides many roads for rival blockchains, including centralized blockchains of existing financial institutions. Jpmorgan.
conclusion
The block chain app is in the poor age of Flipphone with a physical keyboard. To approach Ubi Quarters, DApps must develop into the era of smartphone (intuitive, smooth and invisible smartphone.
However, such ubiquitous can paradoxically depend on institutional support that the blockchain ecosystem will replace. With technical obstacles Memecoin Mania Many of the public encryption showed that there was a lack of information and speculative.
As more people call for negative experiences through gambling based on tokens, the wrong allocation of these capitals is risk of alienating the wider adoption. It also creates a dynamic thing that the blockchain ecosystem is learned to centralize the center, providing the guarantee and the recognized legitimacy of the authorized institution.
This is a lens through Ether Leeum and rival chain. It is an interesting and innovative platform for distributed finance, but it is still exploring unstable paths between idealism and reality.
