The fact that Ethereum has been used for various different use cases is quite interesting. Ethereum has changed the perspective and vision of the crypto community. Before the Ethereum era, blockchain 1.0 platforms were only used to transfer money across the border. With Ethereum being the leader in the blockchain 2.0 era, nowadays, many people start talking about the possibility of tokenizing every single asset out there.
This article will explore the possibility of Ethereum being the future of the internet and decentralization.
How Did Ethereum Change People’s Perspective On Blockchain?
Let’s start with the fact that Ethereum successfully changed everybody’s perspective on blockchain and cryptocurrency. Before the rise of Ethereum, most people only talked about Bitcoin and how it was faster and cheaper to send money with Bitcoin compared to wire transfer. While the community of Bitcoin kept on growing, the traditional financial institutions and banks did not take blockchain technology seriously.
When Ethereum was first introduced to the world by Vitalik Buterin, everybody started to think that we would finally have a decentralized supercomputer where you wouldn’t need to be dependent on a certain centralized entity. And Ethereum successfully fulfilled such vision even though the progress has not been as fast as everybody expected.
Yes, nowadays Ethereum has been used for various different use cases. Many new crypto startups launched their pre-mainnet tokens in the form of ERC-20 under Ethereum blockchains. Many new crypto startups also used Ethereum to tokenize assets and fiat currencies from outside the blockchain world. Stablecoins like USDC or USDT are operating on top of Ethereum. Tokenized assets like PAX Gold and others are also operating on top of Ethereum.
The fact that Ethereum is being used for more traditional purposes has successfully attracted traditional corporations’ interest in the blockchain space. Take a look at PAX Gold as our example. Buying or selling real physical gold is very hard, especially in the time of the global pandemic where everybody stays at home.
But now, with the existence of PAX Gold, you can easily buy or sell a crypto token with 1:1 value to 1 oz of physical gold. And to back up this claim, you can redeem the token to real physical gold.
The idea of using Ethereum for asset tokenization is endless. You can even tokenize a company’s equity using Ethereum. The narrative of using blockchain technology has drastically changed in recent years. It is not just for “store of value” or for cross-border transactions only. Thanks to the smart contract feature of Ethereum, you can basically do almost anything with the blockchain.
The Borderless Movement And Blockchain Technology
We can say that Ethereum has successfully “mixed” the importance of blockchain technology and traditional applications. Yes, even today, there are games that are utilizing Ethereum to decentralize the virtual assets, so the users can get full rights to the assets that they purchased. CryptoKitties is one perfect example. The game became popular back in 2017 and people could buy and sell virtual kitties directly on Ethereum blockchain.
Ever since many newer casual games had been deployed on Ethereum as well. This trend shows that you can basically use Ethereum to deploy traditional apps. Games, decentralized exchanges, tokenized traditional assets, and others.
The great thing about Ethereum is that it transforms traditional apps to be borderless. It is different from non-blockchain apps where you are limited to where you can do transactions. For example, in the traditional game market, some cards from many different countries are restricted. With decentralized app (DApp), you are always allowed to transact instantly by utilizing ETH or any other Ethereum-based crypto token.
Another great example is the gold-backed crypto token, such as PAX Gold or DGX. As mentioned above, you can easily transfer PAX Gold or DGX ownerships to other traders or directly to the token issuer to redeem the token for physical gold. This makes everything much more “mobile” and “borderless” because it is much harder to sell physical gold to someone outside your own country or even city.
Ethereum can proudly say that it has successfully “transformed” traditional apps thanks to its borderless and decentralized nature. If more and more companies and users are getting used to Ethereum, it won’t be a surprise to see that Ethereum will be used for practically everything due to its more flexible nature than the underlying assets behind those tokens themselves.
So, Is Ethereum The Future?
Let’s get back to the original question. Is Ethereum the future? Well, assuming blockchain gets more adopted, the answer is Yes. Ethereum is in the pole position for dApp competition. There are other smart contract platforms like EOS or Tron, but none of them come close to the various tokens that are operating on top of Ethereum.
The overall volume for various DApps in the Ethereum blockchain gets higher every year. It won’t be a surprise if Ethereum becomes not just the future of blockchain but also computers. In the future, Ethereum will also welcome its biggest improvement in history that is dubbed Ethereum 2.0. With the upcoming radical changes (such as the shift from Proof-of-Work to Proof-of-Stake), Ethereum will be faster and more efficient than ever.
There are always other and newer blockchain platforms that will try to compete with Ethereum, but Ethereum already has its own community and dedicated developers. That alone is a huge asset. First mover advantage is actually a big thing in the crypto space.
Ethereum itself has been adopted by big traditional companies such as Microsoft Azure and others. Many companies who want to use BaaS (Blockchain as a Service) typically use Ethereum or Ethereum-based services due to its always-increasing ecosystem.