Will Ethereum Rise? Full Analysis
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In December 2017, a single Ether was worth $440, shooting to $1,087 by the 21st of January 2018. That is a sign that Ethereum is on its way up to attain the $1,500 per ETH by the end of the year 2018. Many crypto-related businesses are aligning their transactions to the dApps to capitalize on Ether’s decentralization and hence unleashing the efficiencies of the blockchain on the global industry. In market cap, Ethereum is on its way to overtaking Bitcoins and even rise higher. The aim is to introduce more users to Ethereum, grow its values, and rise exponentially in ETH price and utility. These are some of the projects which could signal the rise and growth of Ethereum in the global crypto-world.
7 Top Reasons Why Ethereum Will Rise
1. Huge Companies investing in Ethereum
More than 30 big companies are investing in Ethereum. They include Microsoft Corporation, J.P Morgan Chase, and Intel. These are notable financial giants and are uniting to develop a decentralized network for digital currency transactions. It is for this reason that Ethereum price forecast suggests that the ETH price will hit $1,500 by the close of 2018. The group forms the Enterprise Ethereum Alliance (EEA), where JPM owns 2.72 % of the proceeds whereas Banco Santander owns +0.23 %. These organizations seek to improve the use of the Distributed Ledger, which excludes the role of intermediaries. The system updates all the payments that take place within their network.
The Alliance would also boost Ethereum’s smart contracts. The smart contracts would benefit merchants in the following ways:
- It allows two users within the Ethereum blockchain to write a smart contract within the network.
- It would also allow two companies (example JPM and Intel) to create a contract which could be used to send money automatically to one of them.
The companies chose Ethereum because it is more adaptable, more flexible, and even agiler compared to Bitcoin. It also offers such a capacity for smart contracting and avoids the use of complicated computing terminologies.
2. Ether Scalability Improvements
Ethereum is a public blockchain that seeks to have as many users as possible, the main reason for its scalability initiative. At the moment, the blockchain supports 15 different transactions per second. Visa supports 45,000 transactions per second meaning Ethereum is still slow. Ethereum will achieve scalability in two ways; Sharding and off-chain transactions.
- Sharding– Sharding is a tool that creates a blockchain that connects different universes which share a consensus. Sharding improves the core model protocol to achieve quadratic scalability. The shards will also be used to create new address spaces, which shall be used to make changes to the present protocol. It will also solve the problem of safety (contract safety), consensus, and most important, scalability.
The ambitious plan will ensure that Ethereum conducts 1,000 transactions per second as compared to the current 45 per/sec. It also intends to remain on-chain as compared to off-chain transactions. The changes will bring on board stateless clients, parallelizability, and faster virtual machine. Ethereum will, however, retain the Proof-of-Stake (PoS) system, where senders shall be required to produce Merkle proofs for all ETHs that they send.
- Off-Chain transactions– the technology seeks capacity-expansion and is an off-shoot idea from Bitcoin’s Lightning Network. The vision allows transactions to be made on off-chain channels, thus encouraging multiple entries of micropayment firms. Any party can end the transaction and allows users to operate full-node.
- Anonymous Transactions- Ethereum adopted the Whisper Project, which is a communication tool for dApps to encourage more anonymous and faster communications. The first step is that dApps signal each other and discourages the possibility of archival of communication. Correspondents exchange through a ‘dark’ alley, all that they know about each other is a hash. Whisper Protocol will ensure that not all parts of the message can be intercepted. It is therefore hard for third parties to assemble and analyze data to which they are not a party to. The benefit of the anonymous transactions is that it will allow enhanced anonymity, faster, and safe transactions. The big question remains: can Ethereum rise? Project Alchemy is another of Ethereum’s means to achieve anonymity. It has collaborated with Zcash R & D to ensure the following is achieved; enhancing Ethereum’s Anonymity through the integration of the Zcash cryptographic engine, also referred to as the (-SNARKs). The second purpose is to allow the orderly execution of the Ethereum’s blockchains.
3. Ether Flexibility
Will ether rise? Perhaps that is the question in the minds of a majority of Ethereum investors and potential developers. Ether will rise for its flexibility. An example was the surge in its price, which by March 13th, 2018 was at $ 2.74 bln (an all-time high) in the market cap. The reason for the surge is Ethereum’s increased demand; it is cheaper, developer-friendly, and more flexible.
As Ethereum underwent hard forks in 2016, it became evident that it had taken a good step to prioritize flexibility and functionality, and hence serve the market which had tired of Bitcoin’s congestion. Delays by more than 48 hours prompted Ethereum to come up with alternatives for the market. Majority of those investors joined Ethereum as the best alternative. John Lilic founded the Code to Inspire school in Afghanistan, and he states in his Ethereum forecast that Ethereum is bound to go up due to its flexibility and cheaper offers on the demanding market.
4. Token Creation and Crowd Funding
Token creation and crowdfunding are two of Ethereum’s powerful technologies. The two allow you to create tokens for your company or organization through ICO, which is hosted on Ethereum blockchain. Crowdfunding will allow you to raise funds from contributors for your project in the form of token exchange for cryptocurrencies such as Ether and Bitcoin. These tokens are called ERC20 could be used to pay for promotions, premiums, advertisements, or even come back as cashback.
5. The transition from PoW to PoS: Casper Protocol
Proof-of-work demands that miners process mathematical problems within their hardware in exchange for tokens. It is used by Bitcoin, Litecoin, and even Ethereum (at the moment). It means that a mineable coin utilizes the PoW Casper protocol. Proof-of-stake, on the other hand, is different. ETH holders can now display the much they own by running the master node, which demands that you have to ascertain the ownership of a certain amount of ETH, to prove you are indeed the holder.
Proof-of-stake (PoS) therefore rewards the ETH holder based on how much they lock away as well as the length of time it is locked away. 1000 miners could be used to verify the account, whereas the actual wallet holds 10,000 ETH in the form of staking. PoS does not consume much electricity. It also allows the owner to lock away Ethereum, which creates scarcity and thus drives the Ethereum price to go up.
6. Ethereum allows dApps
The dApps is a game-changing technology. The app has a myriad of applications and benefits, which includes:
- Maximum utilization of smart contracts, thus removing the middlemen from gaining in between.
- The aggregation of digital data.
- The DApp allows digitization of user identities in line with their token assets.
- Quick and efficient crowdfunding for the businesses through ICO.
- People can donate their computing power to these companies and get paid in return for their services. You get paid for solving mathematical equations.
- It automates responsibilities and reduces the expenses that organizations have to incur to run a business thus minimizing the need for freelancers or even employees.
7. The Problems of Bitcoins
Bitcoin suffers from slow transactions. Some merchants need cash faster and hence would prefer quick transactions. The problem with the slow transactions is that it slows down the duration for the customers to ensure the security of the addresses they exchange. Huge transaction costs are the number one biggest problem in the Bitcoin business. It is expensive to request customers to pay a $28 to carry out transactions using the digital currency.
Bitcoin is also criticized for creating an insurmountable hardware competition which demands that users consume much electric energy to ensure that its network is working to the optimum. That is why proof-of-stake came in Ethereum to solve the problem.
The problems identified would have users migrate to Ethereum, and other cryptocurrencies since Bitcoin does not offer protection against fraudsters neither do they offer the possibility of transaction-reversibility.
Scenarios inspiring Massive Ethereum Price-Jump
1. Ethereum reaches Mass Adoption
Steven Nerayoff is Ethereum’s Advisor. He states that open-source functionality would allow mass adoptions and growth across the industry. Governments use their applications; the gaming industry is also unique, gas industry alike, but Ethereum has invested in its natural places such as the Fintech. Ethereum’s smart contract has boosted its reputation as the leading platform for ICOs. Developers can now use the dApp application for their investments. Ethereum’s raison d’étre is a monetized blockchain that developers can use on a platform referred to as the Investopedia.
A good example of the success of the Ethereum mass adoption is the adoption of the CryptoKitties. Developers used the platform to come up with innovative solutions. The online game was Ethereum’s biggest dApp in 2017 and is reported to have created a massive strain on Ethereum’s network. The rise in the use of Ethereum will see its price go up and an exponential increase in the number of its projects. The projects this year could be ten times last year’s. Hence the Ethereum price will go up, maybe by triple figures next year.
2. Bitcoin Problems Become Too Big
Bitcoin suffers from a great many deals of problems, which would work to the advantage of Ethereum’s expansion. Some of the major blows include:
- Bitcoin has huge transaction fees >> That is the number one problem with Bitcoin. It demands that developers pay $28 for digital currency transactions. Ethereum, on the other hand, is cheaper and has attracted many investors.
- Bitcoin’s hardware >> demands a lot of energy regarding electricity, and hence users cannot save on energy. It is also expensive to maintain the energy demand in some countries.
- Bitcoin is slow >> which works to the disadvantage of merchants in need of quick cash. As a result, many investors and developers opted for Ethereum, which is faster, cheap, and secure.
3. Countries start Supporting Ethereum
South Korea, China, and Japan are among the leading countries to adopt Ethereum. China provides cheap hardware and sufficient electric power to mine cryptocurrencies. BTCC controls its mining pools, owning 60% of the collective hash rate. Chinese government allowed withdrawals through BTCC, Huobi, and OKcoin, hence the increase in user confidence for Ethereum in China.
Japanese Bitcoin market exploded when China experienced virtual currency stagnation. Japan is now accounting for more than 55% trade volumes in cryptocurrencies, from a paltry 1 %. Japan’s GE policy resulted in deflation of the Yen and decrease in investor confidence. Hence developers went for the cryptocurrencies as an alternative, thus encouraging the rapid adoption of Ethereum and other cryptocurrencies. Investors are now delving into virtual currencies since the government’s economy may be volatile and disastrous to a business.
Ethereum price prediction suggests that Ethereum price will rise. Ethereum is indeed the platform that gives room to cryptocurrencies, apps, block-chain based programs, and even crypto-assets to be developed and funded through crowdfunding and token exchange. In the next ten years, the Ether technology will be applicable in almost every area of virtual currency interactions. It is, therefore, true that the Ethereum price value will soar and increase. Take your opportunity and grow your ETH before it is too late to act.
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