Search
  • Niranjan

Ethereum's Prospects

Before Ethereum, cryptocurrencies had been around for several years. Although Bitcoin was the first, Litecoin, Dogecoin, and other cryptocurrencies had a large following and community long before Ethereum. Ethereum is only two years old at the time of writing, whereas Bitcoin has been around for eight years. Ethereum is still in the early stages of development, and its full potential is yet to be realised. Given how new Ethereum is, we can only speculate about its future; however, some trends are emerging that can be used to forecast Ethereum's potential future.





The Enterprise Ethereum Alliance is a non-profit organisation dedicated to


The Enterprise Ethereum Alliance's formation resulted in a significant increase in Ethereum's price and interest. There are about 150 members in the Enterprise Ethereum Alliance. These are some of the world's most powerful corporations collaborating to create frameworks for implementing Ethereum within businesses. This alliance has been around for less than a year and is still working on feasibility studies. They have yet to make any major announcements about Ethereum's use in a large global organisation. Because this alliance brings together governments and major corporations, Ethereum has the potential to become a platform used by businesses and governments all over the world. It's also possible that after investigating Ethereum, businesses and governments will decide not to use it. They could develop their own blockchain-based systems that aren't based on Ethereum. Given the number of governments and companies interested in Ethereum, it's a safe bet that it'll be adopted by major governments and corporations. Even if the companies in this alliance decide not to use Ethereum, there are thousands of other companies that are interested in incorporating Ethereum into their operations.


Regulation and legislation pertaining to initial coin offerings (ICOs)


China recently outlawed illegal initial coin offerings (ICOs) and cryptocurrency exchanges. Companies raising funds through ICOs have been subject to little regulation, which has resulted in scams and investors losing money. Companies have been using initial coin offerings (ICOs) to raise funds, allowing them to avoid the financial and regulatory requirements of raising funds. Before sending funds to participate in an ICO, people must first convert their fiat currencies into cryptocurrencies. People are also not given shares in the company, but rather tokens that can be used in the app once it is released. These are basically loopholes that allow businesses to circumvent existing legislation. It is legal because companies are receiving funds in cryptocurrencies rather than fiat currencies, and people are purchasing tokens rather than investing in the company. Law changes lag behind societal and technological changes. Before laws are changed, there are lengthy investigations, government reports, and court cases. Many governments around the world are investigating initial coin offerings (ICOs) and how to deal with them. While ICOs are legal in most countries, China's ban on them could set a precedent for other governments to follow. If no outright bans are enacted, there will be more regulation and requirements for raising funds through an ICO.


Other platforms pose a threat.


Ethereum is revolutionary, but it's also open source, which means anyone can download the source code and make their own version. Other companies or groups can create their own version of Ethereum Classic, which is nearly identical to Ethereum. Because blockchain-based systems and cryptocurrencies require a large community to contribute computing power and support the network, Ethereum Classic is much less popular than Ethereum. Ethereum has a large user base and is backed by businesses and governments. Ethereum classic is unlikely to compete with Ethereum; however, China has its own blockchain startup ecosystem. Developers can create decentralised apps and smart contracts using platforms like NEO. The majority of cryptocurrency mining computers are located in China, providing NEO with a large potential community and user base. Bitcoin developers may also create a similar platform that runs dApps and smart contracts on the Bitcoin network. If this is the case, Ethereum may face significant competition, as well as an alternative that uses Bitcoin for smart contracts and dApps. After a few years, the first company to develop a new technology is not always the dominant leader in the space. Although Ethereum may be the first blockchain-based platform to allow the creation of dApps and smart contracts, it is unlikely to be the most popular.


The Internet is decentralised.


The ability to replace the internet's structure with a decentralised internet may be the most revolutionary aspect of Ethereum's potential. The advantages of decentralised apps and servers were previously discussed in the book. To quickly summarise this information, when you visit a website, you are doing so through a central server. The central server stores all of the files, photos, and data you upload. If that central server is hacked, then all of the data on it is at risk. If the server goes down, the website and all data go down with it. Ethereum enables decentralised websites, applications, and almost anything else you can access online today. Websites, apps, and data are stored and accessed through a global network of decentralised computers. This has the potential to displace web hosting companies, file storage companies, and even the internet's very structure. Individuals, not large corporations or governments, would control the internet as a result of this.


Acceptance in the mainstream


The popularity of smart contracts, dApps, and the Ethereum platform is largely dependent on mainstream acceptance. The majority of people are unconcerned with terms like "decentralisation" or "censor-proof." "Security" is a term that they are more concerned with. Most people may not have a need for dApps or smart contracts, and the benefits are unappealing when compared to other options. Many people do not see the removal of third-party intermediaries as a benefit because it means they will no longer be able to contact customer service or visit a physical location. While it is true that no one enjoys being put on hold when calling a bank, it is still preferable to having no bank to call. This is a problem that affects all dApps, not just finance-related ones. For most selfie-obsessed Instagram users, telling them to stop using Instagram and use a different photo app because it's decentralised isn't a compelling argument. People may use Ethereum because they want to use those dApps if companies can create dApps that appeal to a mainstream market. If people don't want to use dApps or don't have compelling reasons to use them, they're unlikely to gain traction or replace existing options. If people can earn cryptocurrency by using a photo-sharing dApp, it may be a compelling reason to use one. People may use dApps because celebrities accept them; however, celebrity acceptance is more likely to be linked to money than to benefits like decentralisation.