The recent collapse of the stock market has strengthened the belief in the ether. This currency was the only one showing a character, when the others, including “the mastodon” on behalf of bitcoin, collapsed under its own weight. Protocol “Casper”, Ethereum Enterprise Alliance (EEA) and applications based on Ethereum are some of the strengths of this crypt, which will help it to rise in 2018. Not switch.
But first, let’s rewind to the events of January to understand what the aether proved to be the best soldier in this bloody cryptophane.
Why air may be the best cryptocurrency
Recently occurred a massive drawdown in cryptocurrency prices scared investors so that investing in the crypt became associated with kamikaze, who put his hand in the lion’s mouth. And this is all the bases. To see them, let’s remove for a moment the rose-colored glasses.
Yes, the blockchain is a revolutionary technology that will leave a mark — there are no issues. However, cryptowall 2018 showed that not everything is based on the blockchain of cryptocurrency justify the cost attributed to them inspired by the prospects of the bulls.
In fact, many are bullish captainvalor already sniffed the smelling salts and come to life. But at the same time accept the fact that most of cryptocurrencies in ten years will disappear from the horizon.
Take for example, at least Barry Silbert (Barry Silbert) of Digital Currency Group. His company launched the largest bitcoin Fund, Bitcoin Investment Trust, and is now working on the start of the Grayscale Digital Large Cap Fund, another investment Fund with five scriptactive. Two top among them is bitcoin and ether.
According to Silbert on market summit Yahoo! Finance last week, in the long term will only be one “digital gold”, and only one cryptomonad ensuring users anonymity. He also believes that there will be just one main platform for smart contracts.
When we hear “the main platform for smart contracts,” then, of course, think about Ethereum. In the end, except for the Ethereum people are talking only about the “analogues Ethereum, Ethereum competitors” or imaginary “killers Ethereum”. Simply put, they are all secondary after the offspring Baterina. Ethereum has been a leader in this niche.
Why you should care about Ethereum after cryptogamae?
Historically, that altcoins move in tandem with bitcoin. Where the cue ball, there they are. To this day the movement of the majority of quotations in this market are driven one way or another from BTC. Bitcoin keeps kryptering in the iron fist of influence. This kind of wind, which inflates the sails of Cryptocoryne or can suddenly smash them on the rocks.
However, in January, when bitcoin and other crypt staggered, caught my eye immediately are the two, which quotes the ether did not follow BTC. Despite the massive drawdown for almost all of January and beginning of February, the airwaves, among a few other crypto-currencies in General remained in the green zone.
So, what’s so fraught with Ethereum, why investor interest in it increases? Below are three factors that turned the ETH into the top cryptocurrency.
Ethereum Enterprise Alliance
To begin, we note that the most important reason which stands out among the rest of cryptopedia is its partnership with businesses through Enterprise Ethereum Alliance (EEA).
This is the EEA, which already consists of more than 500 prominent members, has set itself the goal of Ethereum promote among global corporations. The fact that in its ranks are these honorable gentlemen, as Microsoft Corporation (NASDAQ:MSFT), Samsung, JPMorgan Chase & Co. (NYSE:JPM), Intel Corporation (NASDAQ:INTC), Cisco Systems, Inc. (NASDAQ:CSCO), it is enough to perceive Ethereum seriously.
And despite other prominent kryptonite, like Ripple, which conclude similar partnerships, no not yet managed to gain the reputation it has already received Ethereum in a corporate environment.
EEA has only recently intensified their efforts at public relations, after he announced the adoption to the position of Executive Director Ron Resnick (Ron Resnick). Now, when these cryptofauna is headed by the new commander, the Alliance has finally formed a definitive direction to move in.
We firmly believe that with leadership support Reznik EEA will be able to achieve their goal much earlier than planned. And they want neither more nor less — “involved in Ethereum creating a technological base for corporations,” according to Resnick.
Future upgrades Ethereum
In addition, the mood rises when I hear about the two upcoming updates for the platform. Will mention them briefly.
When it comes to technology, Ethereum is accused of two things. First, the scaling problem, they say, Ethereum is slower than some of his pathetic copy. What Ethereum handles a total of 15 transactions per second, then as his newest rivals can do up to 100 000 (and sometimes more).
However, Ethereum just busy finding a solution for this problem. Its founder, Vitalik Buterin recently made a small spoiler “Ethereum 2.0” — the next phase of the Ethereum platform. It will be accelerated and scale — thousands of transactions per second. For Ethereum it will be a stunning upgrade.
Another issue, which accused the Ethereum, is an algorithm of “proof-of-work” (proof of work) to reward miners. It is also used in bitcoin. However, as it turned out, this mechanism loses relevance.
“Proof of work” is a lure miners at the expense of the reward. However, it is quite expensive. This algorithm forces the miners to spend a ton of money to buy equipment to stay in the mining business and not to remain in his backyard.
An alternative is the algorithm of “proof-of-stake” (proof of stake). Simply put, in its application, the miners receive a reward based on how much this game has managed to gather a crypt. It is a reasonable alternative to the old algorithm, but bitcoin and ether implementing it very slowly.
So now, upgrade of air called Casper will replace in it the algorithm of proof of work to proof of stake. Testing was started at the beginning of January. At this time, when the air grew, despite the General market decline. The update will go to the masses this year. Therefore, it remains only to see how Ethereum is leaps and bounds along the path of technological innovation and keep our fingers crossed.
And finally, the second reason why Ethereum raises its head over the competition is the expansion of its ecosystem. The number of apps created on its basis, is growing every day. At the moment the platform has more than 1050 decentralized applications (DApps).
These applications increase the number of processed transactions in Ethereum, and at the same time, the cost of ETH. So now the number of transactions on the Ethereum comparable to those treated bitcoin in the history of existence.
With their bitcoin transactions, which historically was more than the air, released the reins of leadership in July of last year, and then the torch picked up Ethereum. This is another factor which enhanced its support of the ETH, not allowing to go down during cryptogamae.
Thus, the strong position of the air during the collapse of the cryptocurrency market shows that, probably, it is the sole currency of the investment which is worth considering. Fisherspoone three reasons strengthen the desire to bring bullish Outlook. We gladly do. Optimistic quotes ETH projected to reach $1500 this year.