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Is Ethereum Here to Stay?

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Is Ethereum Here to Stay?

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Ethereum (ETH) is the most well-known altcoin in the cryptocurrency space and the second largest cryptocurrency by market capitalization. Its leading position in the programmable blockchain sector, growing institutional adoption and future upgrades and deflationary economics truly puts Ethereum in a league of its own.

However, as the cryptocurrency industry continues to mature and develop, more competing cryptocurrencies are emerging with new and improved solutions to the blockchain dilemma (scalability, security and decentralization). The following discussion will investigate if Ethereum will survive in the long run and stay relevant as the cryptocurrency industry continues to evolve. 

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Is Ethereum Here to Stay or Just a Fad?

Ethereum, alongside Bitcoin, is at the forefront of the cryptocurrency movement. However, many people believe Ethereum could overtake Bitcoin as the dominant coin in the market in the near future, and for good reason. 

Bitcoin is often referred to as a first-generation blockchain. It wasn’t created as an overly complex system, and that’s a strength in terms of security. It’s kept intentionally inflexible and slow to prioritize security and decentralization. However, Bitcoin’s coding language is extremely constrained. This means that it doesn’t accommodate applications outside of transactions very well and is limited in terms of functionality.

In contrast, second-generation blockchains are capable of more. In addition to financial transactions, these platforms provide a greater degree of programmability. Ethereum was the first second-generation blockchain and is the most prominent and decentralized one to date.  Ethereum transcends Bitcoin’s aim of creating a fairer and more transparent financial system, and instead aims to create an all-encompassing, new and improved digital economy. 

What is Ethereum?

Ethereum is a Layer 1 blockchain, a type of project that represents the base network or underlying infrastructure in a blockchain-based system. Layer 1 blockchains can finalize and validate transactions without the help of another network. They also have their own native token, which is used to pay for transaction fees.

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In other words, you can think of Ethereum as a publicly shared global computer network. It doesn’t run on a single device but instead runs simultaneously on thousands of devices around the world. People around the globe contribute their computer’s computing power to secure the network and are paid in Ether (ETH) for doing so. Ether is Ethereum’s native cryptocurrency and can be interpreted as the fuel that runs the network. 

The main idea behind Ethereum is that developers can create and launch decentralized applications (dApps) that run across a decentralized network instead of a centralized server. This is done through the use of smart contracts, which refer to programs stored on a blockchain that facilitate the exchange of assets between two parties when predetermined conditions are met. DApps cannot be censored or shut down with ease, effectively shifting ownership and power on the internet away from a few to as many people as possible. DApps built on Ethereum can be developed for a variety of purposes including finance, gaming and social media.

The possibilities are growing all the time. Ethereum’s decentralized finance (DeFi) system allows anyone to send, receive, borrow and earn interest on funds at any time and anywhere in the world without financial middlemen. Moreover, anything you can own can be represented and traded using NFTs, effectively removing intermediaries, creating new markets and simplifying transactions. 

Like most cryptocurrencies, Ethereum is supported by a technology known as a blockchain

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— a decentralized, distributed ledger that records the provenance of a digital asset. The blockchain secures cryptocurrency transactions by creating incentives to make tampering unprofitable for malicious users. The implication is that ownership of crypto is held probabilistically through trustless enforcement rather, as opposed to certainty. 

Unlike Bitcoin, Ethereum’s token emission schedule wasn’t decided at launch. Bitcoin set out to preserve its value by limiting its supply and slowly reducing the amount of new coins coming into existence. Conversely, given Ethereum’s unique aim, the type of token emission schedule best fit for its purpose still remains open-ended.

What is Ethereum 2.0?

Later this year, Ethereum is set to make the biggest change in its near-decade history to address the blockchain’s proof-of-work (PoW) consensus mechanism. Previously called Ethereum 2.0, the Merge will transition Ethereum from PoW to proof of stake (PoS). Ethereum 2.0 now refers to the end goal of Ethereum, that is, achieving decentralization, security and scalability. 

According to a report by Bloomberg Intelligence, Ethereum’s upgrade will move the Ethereum network from a PoW consensus algorithm to a PoS one where network validators can verify transactions and stake their ETH. At its core, the Merge to PoS will reduce network energy usage by at least 99.95%. Currently, the network has a carbon equivalent equal to the entire nation of Finland, and the core developers understand that the Ethereum network needs to improve. Other benefits of the Merge include:

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  • The system will gain long-term scalability and sustainability over time.
  • PoS makes participating in the network more accessible for many users, not just large miners.
  • More equal distribution of network rewards incentivizes good behavior and opens up yield to more users.
  • The lack of mining will cause Ethereum’s overall coin supply to dwindle, which should push up its price.

Ethereum History

After the groundbreaking release of Bitcoin, the blockchain industry quickly sparked the imaginations of developers around the world. In 2013, this interest led a Canadian developer, Vitalik Buterin, to propose a new platform that would allow developers to create dApps and ultimately address the flaws of Bitcoin’s scripting language. The founders of Ethereum were among the first in the space to consider the full potential of blockchain technology beyond just facilitating the secure trading of virtual currencies.

Ethereum’s mainnet launched in 2015, with the first live release known as Frontier. Shortly thereafter, Ethereum was listed on major cryptocurrency exchanges. Since then, Ethereum has undergone a series of upgrades that have improved its deflationary aspects – currently Ether’s inflation rate is around 1% after accounting for the amount of Ether burned from transactions. Ethereum is the leading blockchain in terms of total value locked (TVL) and non-fungible (NFT) marketplace volume. 

Pros and Cons of Ethereum

Pros

  • Most decentralized second-generation blockchain
  • Higher level of trust and stability than many other cryptocurrencies
  • Strong network effects and first-mover advantage 

Cons

  • Ethereum’s PoW mining process not eco-friendly
  • Serious scalability issues
  • Inefficient
  • High transaction costs

Ethereum Competition

As a Layer 1 blockchain, Ethereum’s biggest competitors are other Layer 1 blockchains such as Cardano and Solana. All competitors aim to solve the blockchain trilemma (scalability, security and decentralization) more effectively than Ethereum. Nonetheless, while Ethereum is the most decentralized second-generation blockchain, Etheruem is easily surpassed by competitors in terms of speed and scalability, or a combination of both.

Ethereum’s key competitors include Solana, Binance Smart Chain, Cardano and Avalanche. 

How to Make Money With Ethereum

1 Minute Review

Gemini is a cryptocurrency exchange and custodian that offers investors access to over 100 coins and tokens. Founded in the US, Gemini is expanding globally, in particular into Europe and Asia. Offerings include both major cryptocurrency projects like Bitcoin and Ethereum, and smaller altcoins like Orchid and 0x.

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Gemini is 1 of the only brokers with multiple platform options based on skill level. New investors will love the streamlined interface of Gemini’s mobile and web apps, while advanced investors might appreciate all the tools that come with ActiveTrader. 

In addition to a host of platform choices, Gemini users also have access to insured hot wallets to store tokens without worrying about digital asset theft. Learn more about what Gemini can do for you in our review.

Best For

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  • New investors looking for a simple mobile and web app
  • Day traders looking to use technical analysis tools
  • Users looking for a 1-stop-shop to buy, sell and store all of their cryptos

Pros

  • Easy and quick signups — can get started in as little as a 5 minutes
  • Multitude of platforms to accommodate traders of all skill levels
  • Hot wallets include insurance to protect your from theft and hacking attempts

Cons

  • Charges both a commission and a convenience fee for users buying and selling through the desktop or mobile app
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Aside from buying ETH at one price and selling at a higher price, you can make money with ETH through interest-earning platforms such as Gemini or Coinbase Global Inc. (NASDAQ: COIN).

Moreover, you can stake your Ethereum to earn passive income. Staking involves locking up ETH (Ether) to secure the network and earn rewards in the process. Currently, more than 11.5 million total ETH is staked, a significant portion of the entire circulating supply.

However, unlike staking other assets, you have to commit your coins for a longer period of time when staking ETH. Ethereum’s new PoS system is not yet operational, meaning that staking ETH is currently a one-way street. That is, you can stake Ether for interest, but you won’t be able to withdraw your funds until the transition to PoS occurs.

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How to Buy ETH

1 Minute Review

Coinbase is one of the Internet’s largest cryptocurrency trading platforms. From Bitcoin to Litecoin or Basic Attention Token to Chainlink, Coinbase makes it exceptionally simple to buy and sell major cryptocurrency pairs. 

You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which offers more order types and enhanced functionality.

Though Coinbase doesn’t offer the most affordable pricing or the lowest fees, its simple platform is easy enough for complete beginners to master in as little as a single trade.

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Best For

  • New cryptocurrency traders
  • Cryptocurrency traders interested in major pairs
  • Cryptocurrency traders interested in a simple platform

Pros

  • Simple platform is easy to operate
  • Comprehensive mobile app mirrors desktop functionality
  • Coinbase Earn feature rewards you with crypto for learning about available coins

Cons

  • Higher fees than competitors
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ETH can be traded on major exchanges such as Coinbase, Gemini, Crypto.com, KuCoin and Kraken. Many of these platforms allow you to purchase ETH using your credit card, through swapping features or through different trading pairs such as ETH/USDT.

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Is Ethereum Here to Stay?

Overall, Ethereum is the longest-standing second-generation blockchain, with an unrivaled ecosystem of dApps, a respected and talented team and a booming online community. Ethereum has a significant first-mover advantage from being the first blockchain of its kind, which provides Ethereum with a significant head start over other competitors. This quality makes Ethereum less susceptible to being easily replaced and gives it the honor of being the second-most likely point of contact newbies have with the cryptocurrency industry after Bitcoin.

However, it is important to note that a significant determinant of Ethereum’s future will likely be the success of the Ethereum Merge. If the Merge is successful, Ethereum may be one of the most popular crypto assets for institutional investors for the foreseeable future.

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analysis group

Report: The Metaverse Might Contribute $320 Billion To Latam’s GDP In The Next 10 Years

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Report: The Metaverse Might Contribute $320 Billion To Latam’s GDP In The Next 10 Years

A new report indicates that the metaverse might be a significant factor in the growth of economies in Latam and the world in the coming decade. The study, issued by Analysis Group, estimates that Latam might benefit from a surge of $320 billion or an approximate 5% of its GDP, in the next 10 years. This is the biggest percentage share of GDP of the regions in the study’s projection.

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Analysis Group’s Metaverse Report

The metaverse is becoming a subject of intense focus in crypto and business at large, and many companies are already projecting the impact that it might have in several countries and areas in the future. In a recent report titled “The Potential Global Economic Impact of the Metaverse” issued by international economic consulting firm Analysis Group, the opportunities that the emergence of the metaverse could open in the next ten years are examined, assuming “adoption begins in 2022.”.

In the document, the researchers compare the rise of the metaverse with mobile technologies and examine the growth as if this new technology were to evolve in a similar way. This industry was selected “because of similarities to the metaverse in the way it combined existing and nascent innovations to fundamentally alter global technological and economic landscapes.”

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Major Latam Growth and GDP Estimates

According to the report, the metaverse and its related activities have the potential of representing 5% of the GDP of Latam in the tenth year after adoption begins (2022), contributing $320 billion to the economies of the area. The report also projects that the growth in Latam will be the biggest percentage-wise, while the APAC region would have the biggest growth volume-wise, representing more than $1 trillion of its GDP.

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Globally, the study estimates that the metaverse will generate $3.01 trillion, becoming more than 2% of the GDP of the world ten years from now. Per the report, this growth will only happen if the sector reaches its expected potential, having “far-reaching applications, with the potential to transform a wide range of economic sectors such as education, health care, manufacturing, job training, communications, entertainment, and retail.”

Other companies have also predicted the possible impact of this new activity and the economic opportunity it will present for different industries in the future. Grayscale, one of the leading cryptocurrency asset managers, estimated that the metaverse might become a $1 trillion business opportunity in the future. Goldman Sachs also predicts the metaverse will be an $8 trillion opportunity. JPMorgan has stated that this $1 trillion market “will likely infiltrate every sector.”

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What do you think about Analysis Group’s metaverse report? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Ariva

Ariva Celebrates 1st Year Anniversary With Impressive Achievements In The Blockchain Industry

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Ariva Celebrates 1st Year Anniversary With Impressive Achievements In The Blockchain Industry

press release

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PRESS RELEASE. Ariva, a next-generation tourism & travel blockchain protocol, celebrated the first anniversary of its launch on May 25, 2022. This development marks an impressive milestone for the blockchain project that has taken the tourism sector by storm in recent months.

Ariva launches reward program to celebrate 1st anniversary

Ariva has announced a giveaway campaign to celebrate the first birthday that will reward users with different prizes. This includes a limited collection of its Arivaman NFT to 6 winners, $30 million ARV tokens to 30 participants and $6k BUSD to six winners.

Ariva has further revealed that participants will have to complete a series of events, including following Ariva on different social networks, voting on Coinmarketcap and filling out a reward form with their BSC address.

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Undoubtedly, one of Ariva’s most important birthday week events will be the launch of the alpha test of the Ariva Wonderland Metaverse project. In a surprise, the team announced that the test will be conducted in an open alpha test format and that a limited number of gamers from the committee will be selected for this unique experience.

Major achievements accomplished in 12 months

Ariva has achieved some noteworthy achievements since its launch due to its impressive concept and innovative products. It has an active community of more than 200,000 members on social media and is featured in 100+ tabloids globally.

Ariva has also enjoyed significant adoption of its token ARV with more than 220,000 holders. ARV has also been listed on 32+ exchanges and 10+ wallets showing the rapid growth of the utility token.

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Ariva has also hosted several events to foster the development and adoption of blockchain technology in the tourism industry. In recent months, it has also embarked on high profile partnerships with the World Tourism Forum Institute and Global Tourism Forum.

Ariva’s partner, the president of WTFi Bulut Bagci was also a keynote speaker at the FIS Dubai event in May 2022. Furthermore, Ariva has been able to embark on policy building with members of the European Parliament on how it can revolutionize the travel and tourism industry with blockchain technology.

A complete blockchain-based tourism ecosystem

As promised, the team also launched the Ariva.World crypto travel portal and Ariva.Finance payment gateway before his birthday. They also stated that the distribution of Ariva Pos Machines to hotels and travel agencies will begin in a short time.

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Merchants can also deploy Ariva.finance APIs on their stores to integrate crypto payment systems. Furthermore Ariva.Finance has been deployed into the first batch of Ariva POS machines that hotels and tourist centres have adopted. Ariva.World is a decentralized hub that enables tourists to connect with local and global tourism service providers.

Ariva recently launched Ariva Wonderland, a metaverse project that aims to introduce tourists to a world with limitless travel experiences.

More developments expected in the future

The Ariva team is not resting on their laurels and has partnered with Global Tourism Forum ahead of its leader’s summit set to take place in Washington DC on 24th June. It has also revealed plans to extend more features for the Ariva Wonderland metaverse and list ARV on more exchanges in the coming months.

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To learn by visiting the website https://ariva.digital/


This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

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Argentinian Cryptocurrency Exchange Buenbit Announces Staff Layoffs

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Argentinian Cryptocurrency Exchange Buenbit Announces Staff Layoffs

Buenbit, an Argentinian cryptocurrency exchange, has announced a series of layoffs due to the downturn that traditional and crypto markets are currently facing. Buenbit’s co-founder and CEO, Federico Ogue, clarified that this move had nothing to do with the recent Terra ecosystem disaster and that from now on, the exchange would focus on keeping operations in countries where it already has an established presence.

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Buenbit Announces Layoffs

Buenbit, an Argentinian cryptocurrency exchange, has announced a change in its hiring strategy due to the recent downturn that the cryptocurrency and stock markets are facing. According to some reports, the company will be laying off almost half of its current workforce across the three countries where it operates, including some senior executives.

Federico Ogue, co-founder and CEO of the exchange, stated on social media that these changes were the consequence of the tech industry facing a review phase. Ogue stated:

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Given this new context, we decided to reduce our staff and pause our expansion plan to focus exclusively on operations in the countries where we are present today and maintain a self-sustaining and efficient structure.

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Furthermore, Ogue revealed that this move had nothing to do with the recent collapse of the Terra ecosystem, even though the exchange did offer Terra-related services as part of its investment portfolio. “It is a decision that we have been working on for months. It is an adjustment that is taking place throughout the startup industry,” he explained.

Expansion Plans Halted

This new strategy ends the expansion plans the company had revealed during its Series A financing round, which raised $11 million for this goal in July 2021. The company announced that its focus will be to maintain the same quality of operations in countries where it is already present.

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The company stated this was a proactive response to an upcoming problem, “in order to avoid, in the near future, the unnecessary exposure of the company to the dependence of raising a next round of investment, when the market numbers indicate that this is not the correct strategy to follow in the current context.”

Other exchanges have also announced changes in their hiring strategies due to the new direction of the global economic markets. Coinbase, a U.S.-based cryptocurrency exchange, recently noted it would slow down its hiring process to be in a better position during and after the current market downturn.

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What do you think about the layoffs announced by Buenbit? Tell us in the comments section below.

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Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

Advertisement

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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