Ethereum turns five. What was, what is, and what is coming soon.
Five years ago today, the team around Vitalik Buterin Ethereum peeled out of the egg. Now the network is about to grow up. The way there was characterized by ups and downs.
As the first platform that is smart contract capable, Ethereum should offer a world premiere. Because contracts that are automatically executed offer a broad application for the blockchain industry. But things did not run smoothly with them (yet). They are prone to errors and can lead to considerable losses. How it happened in June 2016: The DAO, a decentralized autonomous organization, was hacked. Much of the equipment was stolen and distrust spread among users. It turned out that “The Code is law” is not the best motto if the code is incorrect.
But Ethereum recovered and with it the ether course. On January 14, 2018, it should peak at just under $ 1,400. One of the reasons for this was the gold rush, triggered by the initial coin offering (ICO) euphoria on the market (ICO). Suddenly, everyone who had some know-how could put together their own cryptocurrency, garnish it with a use case, and collect a lot of money for it. The fundamental technology was the Ethereum platform because it can be used to create so-called ERC-20 tokens — the basis for building ICO projects.
But then things went downhill again: the ICO bubble burst, Ethereum, Bitcoin, and the entire crypto market crashed within a short time.
But as it currently looks, Vitalik Buterin’s head birth will also recover from this shock. The ether price rose over 40 percent in the past month alone. The DeFi hype is probably responsible for this. By means of crypto loans, yield farming, and liquidity mining, investors should be able to earn a golden nose here. The basis for this is again the technology from Ethereum. A new bubble could also form here.
The network is also heading for a major update. The switch to Ethereum 2.0 is scheduled for the August 2 kick-off. In the transition phase, also called phase zero, everything should be prepared for the big change of consensus. Because Ethereum wants to switch from the labor-intensive proof-of-work process to the more cost-effective and energy-efficient proof-of-stake mechanism. Then, it is hoped, scalability will work a little better.
If everything goes smoothly, investors can hope for further winners from the ether course.