Bitcoin is the centre of attention in the cryptocurrency world. Ethereum, on the other hand, is a different blockchain technology that is sweeping the globe. It is hardly an exaggeration to state that the Ethereum network, which has been dubbed the world’s supercomputer today, is altering the way we think about applications.
The Ethereum network is used as the backbone technology for the newest Defi projects, Defi Marketplaces, and NFT Marketplaces in addition to producing a large number of ERC20 tokens.
Decentralized applications, or Dapps, have thrived in great numbers in the cryptocurrency industry. Before we get into the most recent Dapps the crypto investors need to be aware of, let us first define Ethereum and ERC20 tokens.
Ethereum and its native token, ether, are frequently combined. Ethereum is a crypto wallet currency that you can get from ZenGo X, and ether (ETH) is the name of the blockchain network.
The ERC20 standard is a set of requirements that all Ethereum-based applications and tokens must adhere to. These ethereum-based tokens are frequently referred to as ERC20 tokens.
The rollout of Ethereum app will change everything
We currently live in an Ethereum App 1.0 environment, which while excellent at the time it was released, is now clogged with too many transactions, challenging to scale, and employs antiquated technology when creating new coins and conducting transactions.
The Ethereum Foundation is now launching Ethereum 2.0 as a result. The update may be the paradigm shift that the world needs to enable common people to use cryptocurrencies for banking and payment services.
First off, Ethereum 2.0 has a significantly lower environmental effect than Ethereum 1. The main component of Ethereum’s Proof-of-Work process at the moment is the high demand for electricity. The issue is that Proof-of-Work requires an increasing amount of electricity over time. By switching to a Proof-of-Stake method, Ethereum 2.0 will reduce the network’s energy consumption by at least 99.95 percent.
Second, by the end of 2021, Ethereum hopes to process roughly 150,000 transactions per second, a huge increase. The Ethereum upgrade will undoubtedly relieve network congestion, which will result in a significant decrease in gas costs.
Thousands of dapps and other scalable applications will be supported by Ethereum 2.0 for thousands of users.
In the long run, we are optimistic that the enhanced infrastructure and expanding DeFi community will result in a significant increase in the price of Ethereum, especially if institutional investors continue to participate.
What should you do?
You may set aside some of your discretionary income each month and invest it in Ethereum if you think that the Ethereum blockchain has potential and will continue to expand. You refer to this as dollar-cost averaging (DCA).
When your dollar-cost average, you purchase into a cryptocurrency at a variety of different prices rather than trying to time the market, investing equal dollar amounts at regular intervals throughout the month.
With this approach, you will consistently amass more Ethereum, and over time, we think you will be in a strong position.