The success of the Ethereum blockchain in implementing “The Merge” is believed to have a greater scope than the Bitcoin blockchain. If the merger is successful, it could even overshadow the Bitcoin blockchain, observers added.
Ethereum concentrates a large number of blockchain applications
The Ethereum blockchain is an important component of the blockchain economy that could usher in a new Internet age. This week, Ethereum is changing its mode of operation, which could lead to a revolution.
Ethereum’s cryptocurrency (ETH) accounts for around 20% of all virtual currencies, behind bitcoin’s 40% share. Unlike bitcoin, Ethereum can be used for many applications. Ethereum was created to support code rather than just value exchanges like the Bitcoin blockchain.
To work, the Ethereum blockchain relies on 9,000 computers (nodes) on the planet that make up a virtual machine accessible globally via the network. The ease of use of the Ethereum network makes it the preferred blockchain of many developers who wish to develop their applications via NFT, play-to-earn or metaverse. “Anyone can program a new asset on Ethereum,” says Simon Polrot, a blockchain expert and former president of the Association for the Development of Digital Assets (Adan). Therefore, many believe that Ethereum will play a crucial role in future metaverses.
According to Simon Polrot and Manuel Valente, 90% of the value of all NFTs issued to date is concentrated in Ethereum. French company Sorare recently partnered with the NBA, recently released sports miniatures on the Ethereum blockchain.
The famous monkeys “Bored Apes Yacht Club” have attracted stars such as Paris Hilton, Eminem and Neymar. They have also sparked wild speculation since their launch on the Ethereum blockchain. “It is around Ethereum that most of the developments in the cryptocurrency ecosystem are concentrated,” says Simon Polrot.
When we look at DeFi, we make the same observation, it is Ethereum that allows for the development of a large number of projects. Apps in the DeFi realm – or decentralized finance – make it easy for people to borrow and lend cryptocurrencies.
“Ethereum is a bit like Windows or macOS. It is the operating system on which we can build our applications ”, sums up Manuel Valente, of Coinhouse, a French company that aims to become“ the future European cryptobank ”.
New updates coming?
DeFi Llama (a specialized site) estimates that Ethereum represents approximately 59% of all the value committed in current DeFi operations. Its direct competitors are BSC, created by the Chinese cryptocurrency giant Binance, and Tron.
Some rival “blockchains” have conquered a certain audience, such as Polygon, Tezos or Avalanche, the latest addition that is arousing a lot of interest. But Ethereum is in a position of strength and, “if he succeeds in transforming him, he can become ultra-dominant,” explains Manuel Valente.
To achieve its goals, Ethereum will have to overcome a new challenge in 2023 or 2024, according to the expert. Ethereum currently processes 20 trades per second, however, this is still considered too low for what the blockchain hopes to achieve. For this reason, he will have to undergo another change, perhaps a mutation, to increase the number of transactions his system can process per second.
The “The Merge” update will forever change the way validators perform operations. Validators will no longer need massive computing power, but will have to pay 32 ETH as a security deposit, or around $ 50,000 at current prices. This repository can be lost if a validator violates protocol or engages in other inappropriate activity.
However, what if this update fails? Perhaps due to an undiscovered flaw in the protocol? Feedback item within a few days, even a few hours …