Eth is rallying! As of 5/6/21, Eth is flirting at $3,400 per coin, which is wild to think because a couple weeks ago it was just $1350. I believe the wide spread adoption of NFT’s and the understanding of Ethereum’s potential is causing this bull run.
Now, I want to preface this post by saying I was a HUGE fan of Ethereum before Bitcoin. Compared to Bitcoin, Ethereum can be applied to a myriad of concepts such as smart contracts, NFT’s, etc.
After years of HODLing, it feels so good to see the rise of Ethereum.
Now lets get into why you should NOT be hitting snooze on ETH.
What is Ethereum?
Ethereum is a programmable blockchain. This means that developers can write code, make rules, and run applications on or on top of the platform. These “smart contracts” can be used to validate agreements securely. Some of the altcoins that build off of Ethereum include Cardano and Polkadot (both of which i own btw).
What’s a tangible real life example of Ethereum? I still don’t understand what you mean by “programmable blockchain”?
You can think of the Ethereum as the “App store” (yes, the apple app store). And all the blockchains that are built off of Ethereum are “apps” (this apps include cardano, polkadot and others). The biggest difference is there is no Apple regulators who gate keep which apps get to make it into the app store. This is what attracted so many people to ethereum in the first place: it’s decentralized in terms of who controls it. The idea is that you can create rules for proof of ownership and everything is community driven.
How is this different from Bitcoin?
Bitcoin has the potential to become the digital version of gold, which has itself been a store of value for thousands of years. Similar to gold, Bitcoin is scarce, can hedge against inflation, and the value is driven by how other folks view it.
Ethereum is more than a store of value.
The bull market in 2017 was all about the possibilities of this technology, but there were no applications or real world uses for crypto. Finally, we are getting more folks who are developing off of crypto, and I can’t wait to see where the potential goes.
What can we do with “smart contracts” and NFT’s?
Smart contracts are code that is stored on the blockchain. NFT’s use blockchain to provide a unique ID for a piece of digital art that can have its own rules for transferring ownership. So you can program a smart contract into a digital piece of art that is being sold as an NFT, so that the artist earns a certain percentage for any future sales of their creation. This is a huge stride forward for creators because they will continue to earn sales for each piece of art that is sold.
The hope is that these smart contracts could displace work alongside many of these tasks and services we use that are bogged down with paperwork and outdated practices. We could see a world where the sale of art, concert tickets, music right, and money transfers are conducted using smart contracts.
Where is ethereum heading in the future?
The hope in the crypto community is Ethereum can become the platform that powers many of these future use cases now. Like any investment, it will have risk and rewards. I have a feeling eth will hit 10k by end of this year, if not sooner. The soaring price is taking into account the future potential of this technology.
As always TO THE MOON!! and don’t hit snooze on ETH!!