Ethereum is a decentralized open-source blockchain on which developers can build and deploy decentralized applications (dApps) and smart contracts. Vitalik Buterin, a Russian-Canadian programmer, launched Ethereum in 2015, and it has grown rapidly to become the most important blockchain platform in the world. Vitalik designed Ethereum to be more flexible than Bitcoin and offer developers more possibilities. Unlike Bitcoin, Ethereum is not only a cryptocurrency but a programmable blockchain allowing developers to build complex applications beyond simple peer-to-peer transactions.

The blockchain’s native cryptocurrency, Ether (ETH), is used to facilitate transactions and pay fees on the network. Similar to how Bitcoin is used, you can also use Ether as a store of value. However, unlike Bitcoin, Ether is more than just a digital currency, as the blockchain’s primary focus is to support smart contracts and dApps. In this article, we will explore why Ethereum is considered as important as the internet and what are its prospects and current capabilities.

The Importance of Ethereum

Similar to how the internet revolutionized how we communicate and share information, Ethereum has revolutionized how we conduct transactions and exchange value. As mentioned earlier, Ethereum is not just a digital currency but a programmable blockchain platform that enables developers to build complex decentralized applications (Dapps) using smart contracts. You can use these applications for various purposes, from finance and supply chain management to gaming and identity verification.

Furthermore, Ethereum’s blockchain platform offers high security and transparency, making it the ideal venue for dApps. As the Ethereum ecosystem grows, it will become even more important as a platform for innovation and collaboration. With the potential to transform industries and create new opportunities in decentralized networks, Ethereum is rightly considered the “internet of the blockchain era.”

ETH Price Projections and The Outlook

As we know, cryptocurrencies can be volatile, so it is difficult to predict the future price of Ether (ETH) with certainty. However, many experts believe that Ethereum has a bright future ahead. Ethereum is the second-largest cryptocurrency by market cap, and its ecosystem is growing at an uncomparable rate. The number of decentralized applications on the Ethereum blockchain and daily active users continues to increase.

The growing demand for decentralized finance (DeFi) could also contribute to the growth of ETH’s value. As ETH is the primary currency used for transactions, its demand will likely increase with more people entering DeFi. Another factor that can contribute to the growth of ETH’s value is the increasing NFT adoptions. In 2021, NFTs disrupted various industries, including art, music, real estate, and gaming. And Ethereum still maintains the majority market share in NFTs.

Furthermore, we can expect the recent Ethereum 2.0 and the Shanghai upgrades to impact the price of ETH positively in the long run. The upgrades have significantly increased the scalability and speed of the Ethereum network, making it more efficient and cost-effective. This, in turn, has and will continue to attract more developers and users to the platform, which should increase the demand for ETH even further.

Despite the recent collapse of the banking sector, Ethereum is currently trading at $1,660 with market sentiment still showing a positive outlook. But experts believe that ETH has the potential to grow to become even more valuable in the future. According to some price projections, Ethereum can reach $5,000 or even $10,000 in the coming years.

Things You Can Do on Ethereum

With various scaling technologies, there is no limit to what you can do on the Ethereum blockchain. Here are just a few examples:

1. Decentralized Finance (DeFi): DeFi refers to various financial applications operating on the Ethereum blockchain. These applications enable users to borrow, lend, and trade assets in a trustless and decentralized manner without the need for intermediaries. DeFi has disrupted the traditional financial industry, creating new opportunities for financial inclusion. Some popular DeFi applications include Uniswap, Aave, and Compound.

2. Social Impact: Staking is another great feature of Ethereum and it is one we will be hearing more about in the foreseeable future. But how does staking connect with  philanthropy you may ask? Well, some companies in the staking space have come up with impact staking use cases, where staking returns are channeled to tackle climate change, inequality, and more.

3. Decentralized autonomous organizations (DAOs): DAOs are organizations that operate without a central authority. They use smart contracts and voting mechanisms to enable stakeholders to make decisions and govern the organization. DAOs can transform how you govern and manage organizations, creating new opportunities for collaboration and innovation. Major DAOs include MakerDAO and MolochDAO.

4. Non-Fungible Tokens (NFTs): Ethereum’s ERC-721 standard has enabled the creation of unique digital assets that can be verified and authenticated on the blockchain. You can use NFTs for various purposes, including digital art, collectibles, and gaming assets.

5. Supply Chain Management: You can use Ethereum to create decentralized supply chain management systems that enable greater transparency and accountability. By using smart contracts and NFTs to track goods and materials, supply chain participants can reduce the risk of fraud and improve the efficiency of the supply chain. Ethereum-based supply chain management systems can transform many industries, from manufacturing and logistics to food and agriculture. Companies like JP Morgan, Microsoft, DeBeers, and Amazon are already using Ethereum for the given purposes.

6. Gaming and Esports: Developers can create decentralized gaming and esports platforms on Ethereum that enable players to compete and earn rewards transparently and fairly. By using smart contracts and NFTs, gaming and esports platforms can ensure that they compensate players fairly for their effort and record the results on the blockchain in a tamper-proof manner. This can include everything from simple games like CryptoKitties to more complex games like Axie Infinity.

Final words

Given the weight of Ethereum in the blockchain, finance, and logistics industries it is hard to see it’s future in any but bright colours. Over recent years this blockchain has become the behemoth of a player and boasts real world use cases that secure ETH’s place as one of the most dominant cryptocurrencies in the space. It is traded in daily volumes of $500 million on the most prominent crypto exchanges like Gate.io and these numbers are only expected to rise further.

Finally, cryptocurrencies are good for the world and Ethereum acts as the most obvious proof of it. As a rule of thumb, assets value is based on its utility, and Ethereum has lots of it!