Ethereum, queen of cryptocurrencies: what is it, what is it used for and why is it going to revolutionize the world of finance

Together with Bitcoin, they are the two most consolidated cryptocurrencies, although it has marked differences with respect to the cryptoactive created by Satoshi Nakamoto

The world of cryptocurrencies does not stop its advance beyond some profit-taking or one-off adjustment. In this stage, Bitcoin (BTC) and Ethereum (ETH) appear as the crypto assets with the greatest consolidation, although they have several differences between them, programming and objectives, among others.

Unlike BTC -the cryptocurrency created by the hitherto unknown Satashi Nakamoto-, Ethereum is powered by a specific programming language, called Solidity, that allows its programmability. The Bitcoin programming language, on the other hand, is limited solely to transferring value.

Over the course of the past few weeks, Ethereum showed a consistent uptrend and many investors decided to redouble their bet. iProUP dialogue with the specialists to ask them why it rose so much and, even, if they were encouraged to provide a forecast on what will be its value in the short term.

Santiago Di Paolo, Head of Community Growth and Research en Lemon, highlights that one of the keys to its progress is that “enables the ground to do much more than send and receive decentralized value“.

Ethereum is a platform for running decentralized applications (dApps) and is the basis of the entire DeFi ecosystem.. This is where the term programmable money comes from. And it is precisely this new financial ecosystem open, transparent and uncensored in which the different dApps are connected to each other, and that it grew exponentially in the last year “, Di Paolo details.

And adds: “the price reflects how millions of new users have been pouring into this new financial ecosystem and used the various products. There came a time when the use of the network was so great that it began to saturate and operating there became very expensive. ”

Manuel Beaudroit, CEO of Belo, argues: “It seems to me that it is a very powerful network and that it has a highly developed ecosystem behind it. and that is constantly innovating“.

Federico Goldberg, CEO of Dollar Store, highlights iProUP: “Definitely, if one is willing to tolerate volatility and think long term, ETH is a very good alternative. It is a 100% decentralized currency that allows programming on the blockchain. ICOs, Defi, SmartContracts all of this exists thanks to ETH.

19552.jpg?7.1

Maximiliano Hinz, Latam Operations Director of Binance, emphasizes that “Ethereum is a fairly safe investment in the world of cryptocurrencies“And he adds:” It is worth noting that today the second crypto with the highest capitalization“.

For Hinz, “it is due to his great adoption, due to the possibility of mounting other projects on your network. That is to say, without having to develop your own blockchain, a project can create its own crypto.Added to that are smart contracts and the ease of mining (we only need a computer and a video card to start) “.

Emiliano Limia, de Buenbit, highlights that in his firm they try not to give investment advice, but to encourage people to inform themselves, investigate and that all disbursements arise from their own decision. “Having said that, invest in Ethereum (ETH) or Bitcoin (BTC) It is within the crypto universe of the most conservative bets, because are the two networks that have been working well the longest, and with more transactions and users “, graphs.

“He was born in 2015, which took just over 6 years. Ethereum is where DeFi or decentralized finance is born, as they are known. That is where programming began, “he highlights.

And adds: “It was the first network that allowed programmability. Although it is something relatively new within what is crypto, it has been a good number of years and it is considered the most robust and consolidated network“.

It is one of the strongest and safest decentralized finance protocols. Solmaker, which is the foundation that created DAI, which was born in 2016 within Ethereum; AVE, which was born in 2017 within Ethereum; Compaun, who was born in 2017 or 2018 within the network, “he lists.

Regina Martínez Riekes, Director and Founder of Amauta Investments, remarks: “In the long term I see a lot of value“.” For all the development associated with smart contracts, DeFI, NFT, although it is a very volatile asset. And, above all, it must be borne in mind that it is not for all investors, “he says.

Why did it go up so much?

Maximiliano Hinz highlights that by increasing the use of cryptocurrencies during the last two years, Ethereum transactions grew exponentially.

It is widely used as a network to mount new cryptocurrencies. This makes it very flexible and also leads to a lot of adoption. The operations in the ETH network have a cost and are paid with the same token. That is, as its use increases, demand grows directly (with purchases and sales of the crypto) or indirect (to pay network commissions) “, he highlights.

Federico Goldberg indicates that “Ethereum rises as the market does.” “Little by little, users and institutions will validate the usefulness of ETH and this will make it grow above the market average“, he points out.

Limia, for her part, believes that “all developments and major innovations that were occurring in crypto, in blockchain technology, are born and born on Ethereum“.

This year the NFTs, the crypto gaming, exploded, which became quite widespread and are all developments that were born in Ethereum. Later they were replicated in other networks that give some advantages and that also have some cons. But nevertheless, the largest number of developers, innovation, of working minds are on Ethereum“, remarks.

18100.jpg?7.1

And he adds: “it is logical because it is a great ecosystem, which is in full construction, for something it is also said that Ethereum is thought of as the Internet of Things. Most likely, the future will be multichain or crosschain, as we speak now, like many chains interacting. That place, Ethereum, is difficult to get rid of ”

Limia estimates that “not even people who have been involved in crypto for a long time imagine everything that can advance from here to 5 years or 10 years. Seeing everything that happened in just 6 years, everything that was developed, the speed and vertigo with which it was done, I think there is no notion of what may happen in the next decade“, he points out.

Di Paolo remarks that there are hundreds of engineers working to improve the scalability of the blockchain. “Rollups, Layer 2, migration to Ethereum 2.0, PoS implementation (proof of stake or proof of stake) and sharding are some of the many things that are already being worked on. If carried out correctly, they would solve the biggest problem that the Ethereum blockchain is facing, “he highlights.

And he adds: “transactions per second would go from 15 to 100,000 and adoption could continue to grow without leaving anyone out.” “Ethereum grew a lot organically these last 2 years and hit a wall: scalability. Today we are working on solving it to continue with its growth path “, he remarks.

Beaudroit agrees that “he has a lot of challenges ahead of him.” “But the community behind it is one of the things that makes Ethereum more interesting“, he maintains.

How much could it achieve by the end of 2021

Regarding the price, Goldberg remarks that “it is very difficult to put a short-term value. Investors should always bear in mind that the bet must always be long term“.

In the same sense, Hinz highlights that there are many external factors that affect the evolution of the markets. “We can expect it to maintain a behavior similar to that of recent months, where we no longer see big price jumps, “he adds.

For Beaudroit, beyond the price, “the interesting thing is how many people are you attracting to develop new applications “. Martínez Riekes, predicts a very high value but long term. .

Limia adds: “An eloquent fact is that no person who has held Bitcoin or Ether for more than 3 years lost money, because every three or four years it has a new all-time high. In the short term, it is very difficult, because they are volatile currencies, but you know that in the long run the trend is bullish“, he slides.

“What we see is that decentralized finance is paving the way to convert to crypto in a valid tool for all types of transactions. Today there are already many people who save, take out credits, make payments, send remittances, in addition to everything that has to do with trading and financial speculation. In this framework, Ethereum is key “, he completes.

We want to say thanks to the author of this article for this remarkable material

Ethereum, queen of cryptocurrencies: what is it, what is it used for and why is it going to revolutionize the world of finance

Dispensary Business News