Kategorie: Ethereum News

• All the popular dApps on Ethereum are now using Polygon, says co-founder Sandeep Nailwal

• The latest Ethereum-based dApp to look to the layer-2 solution is the leading decentralised exchange platform Uniswap

• He says sharding when it finally happens, might not help Ethereum scale “enough” to navigate the current challenges of a slow network and high gas prices.

Polygon co-founder Sandeep Nailwal has said that all the major decentralised finance (DeFi) applications built on the Ethereum network now use the layer two protocol, with Uniswap the latest to signal that move.

Nailwal made the comments during a recent interview, noting that the Polygon network offers the scalability and low gas fees that developers and users are after as Ethereum continues to see network limitations related to congestion and high gas fees.

Asked to comment about some of the DeFi projects currently using the Polygon network, Nailwal noted that “all” the Ethereum-based DeFi protocols were using Polygon. He said that even Uniswap, the leading decentralised exchange built on Ethereum has its community looking to launch on Polygon blockchain.

He pointed out that as for the popular dApps; the major ones currently using the layer-two solution are Uniswap (UNI), Aave (AAVE), and Decentraland (MANA).  According to him, about $5 billion to $6 billion is currently the total value locked (TVL) across all the bridges using the blockchain.

Polygon fees is “a fraction of a penny”

Nailwal also compared gas fees and network transaction speeds between Polygon and Ethereum. Users pay 0.001 MATIC in gas fees on Polygon, a “fraction of a penny” compared to the huge gas prices that users often have to bear while using the Ethereum network, he explained.

Of the issue of network speed, he noted that Polygon’s block time is around 2.3 seconds, compared to Ethereum’s 15 seconds. In his view, even ETH 2.0 might not immediately help solve the problem of scalability.

He believes that Ethereum’s switch to a proof-of-stake (PoS) network will not change much in the way of transactions per second (TPS). He sees the leading smart contract’s speed probably go from 13 to 20 TPS.

Will sharding scale Ethereum “enough”

According to the Polygon co-founder, that’s unlikely. He notes that ETH 2.0 might succeed in increasing throughput to 20 transactions per second, still too low and that wouldn’t change that much even when sharding finally happens in three to five years.

A quick calculation of a projected 64 shards and 20 TPS for each would only bring the speed to 1,280 transactions per second, he opined.

“That’s still not enough for the entire world,” he added during the interview.

Dolce and Gabbana, Elon Musk and Jack Dorsey minted NFTs on Polygon

Nailwal also talked about non-fungible tokens (NFTs), saying that six to seven out of 10 gaming companies are building NFTs on the network. So far, the most notable drop being that of Dolce and Gabbana, which minted and sold one for $7 million.

Other recognisable NFTs minted on the blockchain include those by Tesla CEO Elon Musk, Block’s Jack Dorsey (the former Twitter CEO minted an NFT of his very first tweet) and billionaire investor Mark Cuban.

The post Polygon co-founder on DeFi applications, NFTs on the Ethereum layer 2 solution appeared first on Coin Journal.

Gun to your head, „Name 7 cryptocurrencies!“

If you’re anything like the vast majority (over 95% of the crypto population), Bitcoin and Ethereum will fall among your top 5 picks. This goes to show how popular both cryptocurrencies are in the crypto space. Relative to Ethereum, Bitcoin seems to be at its peak. For the most part, it does feel like Ethereum is only just gathering momentum to claim the top spot in terms of value and market cap. But while Bitcoin comes an obvious first in this regard, should you opt to buy Bitcoin instead of Ethereum?

This article will explore the top 5 reasons you should choose Ethereum over Bitcoin without thinking twice. Sit back and relax because you’re about to learn one of the most important lessons that’ll evolve your investment journey forever.

A Little History

Before we get right into it, it’s important that you understand a few things about both Bitcoin and Ethereum. 

Since 2017, Ethereum has positioned itself in the cryptocurrency ecosystem as a decentralised platform that promotes different forms of transactions in the absence of an intermediary or third party. However, it should be noted that while Bitcoin (BTC) has been around since 2008, Ethereum (ETH) was launched in 2015, selling with a unit price of $3. Although the two coins are largely distinct, they both have a billion dollars market cap; with BTC having $921,629,402,230 and ETH having $478,438,977,852. They are currently trading at $48,769.48 and $4,025.63 as of the time of writing. Both currencies share some similarities, including digital currencies that can only be accessed online through exchange platforms. Also, they are stored in wallets. They are decentralised and utilise blockchain technology- a system of distributed ledgers. For a novice just entering into crypto trading, you can consider the price movement and decide to invest in ETH, and that’s fine. But as a pro, consider the following five reasons before deciding whether to buy ETH or BTC.

1. ETH Usecases

The Ethereum blockchain uses a Turing-complete language that enables anyone to create smart contracts. This made it the first in the ecosystem. Simply put, smart contracts are open bits of code that can be used by anyone that has the necessary knowledge. This has made it possible for ETH to have many uses ranging from healthcare to gaming, finance, and the likes. With the aid of this new protocol, every Tom, Dick, and Harry can create their cryptocurrency token. Unlike BTC, ETH serves as a foundation where other infrastructures can be built in the crypto space. As an investor, what would you rather invest in, a car or land? Say you bought a small piece of land- developed or not- it will appreciate with time compared to a car or smartphone. An entity that continually creates value will itself become more valuable. The continual use of the ETH blockchain in disrupting various industries will consequently lead to an increase in its worth, and as such, would be a good buy in the long run.

1. Greener Mining

As a result of the proof-of-work model used in generating most cryptocurrencies, including BTC, environmental concerns regarding greenhouse gas emissions have been raised. This model is based on a trial-and-error computation to discover the right nonce that will yield a valid block and, as such requires a massive amount of energy. As a result of this, the crypto space has received a lot of backlash and slow adoption by industries, as is the case of Tesla boss- Elon Musk. However, an alternative protocol is being developed for the Ethereum blockchain (EIP-3554) to allow switching to a less energy-consuming mining model- proof-of-stake. This allows users to stake their ETHs in verifying transactions while also earning rewards. Unlike the proof-of-work, the puzzle-solving step would be removed, thereby reducing energy usage. According to the Ethereum Foundation, this is predicted to bring about a 99.95% reduction in the total energy used for mining. If, as an investor, you are also an advocate for a greener environment, then I believe this should help you to make that buy decision.

1. NFT Grand Enabler

The recent buzz in the crypto space has been around non-fungible tokens. For newbies, NFTs were made possible due to the ERC-721 standard of the Ethereum blockchain. Since the emergence of NFTs been used to power some of the big NFT marketplaces, including opensea.io. Although current developments in the crypto space have made creating NFTs with other cryptocurrencies possible, you might still need some ETH. As a crypto creator, there is no harm in bagging a big bag of ETH. It is essential to position yourself as the NFT marketplace is still emergent.

1. DAOs and dApps

The position of BTC in the crypto space is due to being the first comer. However, the Ethereum blockchain and its versatility might tilt the balance between BTC and ETH with time. Before that time comes, get yourself some ETH (even if for buying’s sake). DAOs are decentralised autonomous organisations that exist on the ETH blockchain to function without the involvement of man or any third party. It can be utilised by ventures, NGOs, and freelancer networks.

On the other hand, dApps are decentralised applications built using smart contracts. Unlike Facebook and other apps, there is no central authority. dApps can be implemented in social media, banking, art, shopping, and trading platforms. According to statistics on the state of the dApps, over 2500 dApps exist on the ETH blockchain currently.

1. Ethereum’s Future

Unlike Bitcoin, with only a community of voluntary techies, Ethereum has a separate community of developers working endlessly to help the ETH blockchain achieve its full potential by developing more apps and use cases. This implies that there would be continual development in the ETH blockchain due to its extensibility compared to the BTC blockchain. Ethereum 2.0 will be fully deployed at the end of 2021, which will further help ETH secure its future position in the crypto space. Ethereum has a promising future of endless possibilities.

Bottomline

It is never late to dive into the crypto space. And, even if you’re already fishing from the vast pool, it’s never too late to evolve your trading game and catch bigger fish.

A newbie may think he knows the best coin to buy just by looking at the difference in their prices. But as a seasoned investor, these five reasons would guide you to a more informed decision. Consider this: with a knife, you can only cut limited things, but you can do multiple things with a pocket knife. Size is not always the most important thing. Its functionality. Although Bitcoin has lower transaction fees, a stronger mining pool, and a brand name, it is nothing more than an online currency- just like the rest. So, as you close this page, bear in mind that ETH still has many untapped potentials that you can explore as you find suitable to your numerous needs.

The post 5 Reasons you should buy Ethereum over Bitcoin appeared first on Coin Journal.

November was probably one of the roughest months this year for Ethereum (ETH). Just shortly after hitting all-time highs, the coin followed that rally with a massive nosedive as sentiment waned. Ether (ETH) was dangerously hovering just above $3500 from all-time highs of $4600. But an explosion in buying activity is now suggesting that a rally is coming. Here are some highlights:

• Sentiment towards ETH is shifting positively, with buying volume set to explode

• A bullish rally well into Christmas could see ETH crack well above $4000 and push forward

• Analysts are not ruling out the possibility of all-time highs by Year-end

Data Source: Tradingview.com 

Ethereum (ETH) – price action and analysis

Trading Ethereum in November was really not for the weak-hearted. The wild price swings seen were simply unprecedented. At one time, ETH swung 30% in less than a week, marking the period of sustained market volatility. But the shift in rate hike tone by the US Fed acted as a catalyst for bulls to swing into action. 

At the time of the FOMC announcement, ETH was trading at around $3687. But a buying bonanza rallied the price, eventually taking ETH to above $4000. This is however still a bit further away from the highs of $4600. Besides, there is a real risk RSI could overheat in the coming days. But analysts still see a steady and slow uptick in value, with projections putting ETH well above $4600.

Should you buy Ethereum today?

It’s always a good time to buy Ethereum. It is, after all one of the main mega-cap coins in the market. Also, sentiment around the coin has improved significantly off late. Whether this will hold into the new year remains to be seen. But for long-term bets, it’s still a good time to get into Ether if you haven’t already.

The post Ether (ETH) sees an explosion in buying volume – are all-time highs feasible by new year’s? appeared first on Coin Journal.

Ray Dalio told Yahoo Finance that cryptocurrencies have become an impressive asset class, but he thinks cash could become a “problematic asset”

Bridgewater Associates founder and co-chief investment officer Ray Dalio has revealed that other than Bitcoin, he also now holds a small amount of Ether (ETH), the native cryptocurrency on the world’s largest smart contract platform Ethereum.

The billionaire investor, who’s been at the global hedge fund giant for over three decades, also expressed his admiration of the crypto space terming its growth as “impressive.” But the hedge fund manager did not spare cash, slamming it as possibly the “worst investment.”

Dalio expressed these sentiments during an interview with Yahoo Finance, published Thursday.

First Bitcoin, and now Ethereum

As with many other big-money individuals, hedge fund billionaires, and family offices, Ray Dalio took a negative view of cryptocurrency even as the emerging technology saw massive growth in the last decade.

But in May his stance flipped as he bought Bitcoin (BTC) amid a broader institutional adoption of the flagship cryptocurrency and other digital assets. An explosion of interest in decentralised finance (DeFi), non-fungible tokens (NFTs), and most recently the metaverse only served to increase inflows in this new asset class. 

So, a few months down the line, the American investor has revealed he recently added Ethereum (ETH) to his crypto portfolio.

„I don’t own a lot of it,” he told Yahoo Finance, referring to his ETH holdings. He also pointed out that he could not reveal just how much BTC he holds at the moment.

Talking about Bitcoin, the investor said he thought of it as a very impressive technology that has managed to remain safe for so long and continues to get adopted across the world.

„I think it’s very impressive that for the last 10, 11 years, its programming has still held up,” he noted.

Investors might need to diversify out of cash

Dalio also expressed his views on cryptocurrencies as an investment vehicle, noting that he views these as alternative money and good investments.

But he slammed cash saying that although most investors see it as a safe investment, his opinion is that it’s “the worst investment.“ 

According to him, the dollar’s debasement, for instance, means inflation-adjustment puts losses on dollar-based investments at 4% to 5%. He urges diversification, noting that its likely cash will become “a problematic asset.”

The post Hedge fund billionaire Ray Dalio reveals he now holds ether, slams cash appeared first on Coin Journal.

• Ethereum price has jumped nearly 680% this past year, while Bitcoin has added about 170% to its USD value over the same period.

Galaxy Digital CEO Michael Novogratz says Ethereum is outperforming the flagship cryptocurrency Bitcoin because Ether’s fundamental outlook has investors taking it for a technology bet.

Novogratz outlined this view during an interview on CNBC’s ‘Squawk Box’, where he talked about crypto as well as the current outlook in the equity markets.

Ethereum offers more than just an inflation hedge

The Galaxy Digital exec’s comments come at a time the market is experiencing a downturn exacerbated by uncertainty across the globe regarding the Omicron variant of Covid-19. 

A recent sell-off has pushed Bitcoin’s (BTC) price below $50,000, with the benchmark cryptocurrency declining by more than 13% in the past week. Meanwhile, Ethereum has struggled to break above $4,400, with its price down nearly 6% during the past week.

But while data on CoinGecko shows BTC price is up 170% over the past year, it’s a massive 680% for Ethereum price.

According to Novogratz, part of the reason ETH is outperforming BTC is the fact that the former is attracting more investors amid a shift in investment perspectives.

He says that Bitcoin is limited in its use cases, with usage currently seeing most people go for it as a hedge asset. On the flipside, Ethereum has great use cases, from its smart contracts functionality to applications in decentralised finance (DeFi) and non-fungible tokens (NFTs).

It is this “flexibility” that is aiding Ethereum’s push and outperformance of the leading cryptocurrency.

“People see Ethereum as a technology bet and Bitcoin as a debasement of fiat currency bet,” he explained on the show.

Novogratz also talked about the crypto markets and equities, saying that crypto wasn’t trading as bullish as the equity markets. He however remains upbeat about the broader crypto space, predicting that even though Bitcoin price has slipped below $50k, it’s unlikely to dip under $40k. This, he added, will be the case even with a spike in risk-on effect from a very hawkish Fed.

He also identified institutional adoption and the steady appreciation of the crypto across nations as a good vibe for the crypto asset class.

He noted that the world has “woken up” to the fact that cryptocurrency is now an asset class, adding that people are now looking at Bitcoin as a necessary component of any crypto portfolio. 

A similar view of Bitcoin also came out during billionaire investor Barry Sternlicht’s comment that the crypto is a „smart hedge.“

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