Introduction
The crypto ecosystem has continued to develop over the past 15 years with new projects adding to and enriching this technological & financial realm.
In contrast, for several years now, a pair of crypto-assets have dominated the crypto market, combining for 60% of the total market capitalization.
The two assets are Bitcoin [BTC] and Ethereum [ETH], and today we will focus on Ethereum.
Ethereum :
The project was launched in 2015 by Vitalik Buterin and a team of developers with the intention of revolutionizing FinTech and offering a more complex approach to cryptocurrencies. As opposed to Bitcoin's pair-to-pair exchange of its digital currency.
Blockchain technology allows the creation of decentralized applications (dApps) that can be used in a variety of fields, including finance, gaming, real estate, etc.
As the DeFi sector grows, it has become increasingly dependent on Ethereum, since most successful and viable protocols are based on this blockchain. As an example, we can mention AAVE, which we use directly in the CryptoSimple application.
This technological prowess was possible because Ethereum is based on the creation and execution of smarts-contracts, which enable Ethereum to create this decentralized ecosystem, while at the same time being able to carry out transactions in a transparent and secure way.
There is of course Ethereum's own cryptocurrency: ETH, which is used to pay transaction fees and to reward validators who, using the Proof of Stake system, secure the network by validating transactions through "nodes."
Its potential is still enormous today, the adoption of its technology is attracting more and more players, and in a "blockchainised" world, this network would be a leader due to its advanced technology.
With Ethereum 2.0, the project will be driven even further by surpassing its current limits, which reduce user experience (high costs, for example), because indeed, the blockchain has been a victim of its success. With so many transactions and users to process every second, the network is constantly congested (demanding several hundred/thousands of transactions per second and a network that can only handle a few dozen).
Additional layers (layers 2) have been superimposed on Ethereum today to lighten this heavy burden, but new solutions are needed to make its use viable.
Conclusion
As a result of the power and confidence Ethereum inspires, as well as their ambitions to develop the blockchain even higher than anything previously available in the ecosystem, ETH takes up a large portion of our wallets at CryptoSimple.
There is enough notoriety and confidence in this asset to combine the security of an investment with a very attractive return potential!
