While many experts argue on the topic of Bitcoin price in the future, it seems like the world’s #2 digital coin is not given enough attention. Let’s have a closer look at the prospects that might await for Ethereum.
First and foremost, we need to clarify one thing. Since there is an Ethereum network and the cryptocurrency Ethereum, we will be referring to the latter concept today. Not that this is out of the way, let’s consider the most probable reasons for Ethereum’s price to start falling:
- insufficient scalability
- insufficient security
- insufficient competitiveness
It does not make sense so far, does it? Let’s use an example to make it more understandable. Ethereum Protocol is a huge platform which all decentralized apps can use. To do so, they, of course, need to “pay rent”, and this rent is obviously paid in Ethereum.
Suppose we launch our own SharkCoin platform on the Ethereum network. We will conduct thousands of operations and transactions all of which will have to be paid for in ETH. Besides commission fees, it will cause security risks, intermediary involvement, price jumps etc. Of course, we will try to avoid this scenario. How?
Everything is pretty simple. We will try to pay for transactions in our own SharkCoins. The coins will be transferred directly to wallets of miners conducting a transaction. This will be beneficial for both parties, miners will also be exempt from the necessity to pay ETH commision fees.
In financial circles this term is called Ethereum abstraction. If more and more projects start seeing sense in choosing a non-Ethereum way of development, Vitalik Buterin will have all the reasons to worry about his “offspring”.
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