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Why is Ethereum still the strongest public chain?

by cross chainbridge 3 days ago in ethereum

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From $83 to $250, the price of Ethereum has tripled from its lowest point in this bull market.

Looking back on the whole year of 2017, people found that it is easier than ever to issue coins on Ethereum, and the project party issues Tokens and raises financing by invoking smart contracts. When everyone was financing with Ethereum, the Ethereum blockchain continued to increase in value, and more and more funds were locked in this “world computer”, and Ethereum gained the greatest value until its peak in early 2018.

As the ICO craze faded, and the entire cryptocurrency market entered a bear market, Bridge Smart Contract Development Services the price of Ethereum dropped bit by bit. Coupled with the fact that many project parties began to sell Ethereum after financing, people’s psychological expectations for Ethereum have fallen again and again. Just talking about the collective sell-off of the project team in December last year, there were 45,000 Ethereum. There are also various factors in the market, Ethereum fell all the way from $1400 to $83.

Many opinions say that issuing coins is the biggest use of Ethereum, except for this one point, it is no better than all other blockchains. Ethereum has a slow block generation speed and slow transfer speed. If you play a DApp with more than a few thousand players, the network will be blocked. Now any public chain is faster than Ethereum, and the TPS concurrency is even higher.

At the same time, dozens of blockchain projects launched their own main chains, migrating from ERC20-standard tokens to tokens on their own networks. If other projects want to issue coins, there are more and more choices. EOS, Binance Chain, etc. can all replace Ethereum to issue coins.

“ETH can be sold.” This is the summary of Ethereum by speculators in the currency circle. Many people think that Ethereum has no value anymore.

But maybe, many people are wrong.

Let’s get to know a story first.

Gulu, the founder of Bihu, once said that Cancer found him at the time and wanted to translate the Ethereum white paper together. He thought about the Chinese name of Ethereum for a long time.

We thought it should be called Ethernet, and finally found a word “fang”, called Ethereum. “fang” has two meanings in Chinese, Neighborhood, it means that the traffic extends in all directions, and Ethereum is a platform-level application, a tool that can connect various applications and various Dapps. Fang in Chinese, there is another meaning that the workplace is a manual workshop, it is also a A platform for collaboration, so it’s called Ethereum.”

Ethereum is not called Ethereum, but Ethereum, because Ethereum is not a tool that can only be used to issue coins in the eyes of people in 2017. It is a platform, Cross chain bridge development a computing platform used by the world, and a visionary A platform that can only be seen in the decentralized financial world. Users can’t appreciate the value of this platform for the time being, but capital has already smelled it.

This platform has attracted of well-known investment institutions.

The world’s top VCs are deploying the applications on Ethereum

He has invested in a16z, which has invested in Mystery Cat, Polychain Capital, which has invested in Nervos and Nucypher, Danhua Capital, which has invested in Ontology, Liquid Network, Bain Capital Ventures, which has invested in Digital Currency Capital, Tendermint, and Y Combinator, the originator of Internet angel round investment.

The investment institutions of these well-known projects in the industry are all paying attention to the application of the second and third layers on Ethereum. Especially the two most popular tracks on DeFi: lending applications and prediction markets.

Ethereum has 5 of the top 6 lending apps

How big a market is lending?

According to the National Bureau of Statistics, in 2017, personal short-term loans reached 6.8 trillion yuan, and long-term loans reached 24.7 trillion yuan. The month-on-month growth rate has been above 15% for several consecutive years. In terms of domestic bank loans, in April this year, the total amount of bank loans exceeded 14 trillion yuan. At its peak in 2017, the domestic P2P scale reached RMB 702.9 billion. This is only domestic data.

Before the emergence of P2P, people who could not obtain bank loans could only go to private lending, but private lending had extremely high risks and no security guarantee. So the P2P platform came into being, which is much higher than private lending in terms of yield and risk. Starting in 2007, P2P lending has grown rapidly for 10 years. However, due to the phenomenon of more and more P2P enterprises running away, last year became a turning point in the P2P lending industry, and the state began to control it.

The significance of decentralized lending is that it treats everyone indiscriminately, so that those who hold digital assets can receive reasonable treatment. Although traditional private lending has been controlled, the demand for lending has not diminished. Decentralized lending minimizes the cost of trust, as long as you trust the code, you can complete lending.

Lending applications on the blockchain have become commonplace. BM, the founder of the so-called third-largest public chain EOS, has publicly been optimistic about the DeFi field a few days ago, saying that in this part of the decentralized finance market, EOS is the future. There are already RAM leases, REX resource leases, Build a cross chain bridge and domain name transactions. Ethereum has failed.

These financial applications on EOS are all launched by the EOS system itself, or are official. There are very few independent teams doing financial applications on EOS.

while other chains have no clear direction

When Ethereum Layer 3 applications began to attract capital, the focus of public chains such as EOS, Tron, etc., seemed to be still on DApps

Although there are community applications such as HashBaby, neither the public chain community, nor the development team, nor the developers on the chain have a clear positioning.not to mention other small chain projects.


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