What Direction the Smart Contracts Hub Going?

In cryptocurrency circles, Bitcoin is definitely the superpower. Any random survey on the street would indicate that the pioneer crypto has far greater name recognition.

Regardless, Ethereum is a made asset in its own right. Beginners researching what Ethereum is will be pleasantly surprised to discover that it is an entire sector within crypto. The growth of decentralized finance in 2020 was impressive, to say the least. These decentralized systems can democratize finance and make services more accessible for billions.

That is the essence of decentralized finance. Traditional finance had a centralization aspect that concentrated power in the hands of few. DeFi apps are granting developers unique tools to innovate and revolutionize finance.

Ethereum Has an Ascending Channel Pattern

You may think all cryptocurrencies are like Bitcoin. Not at all. Ethereum is much more than a store of value. The platform hosts thousands of decentralized applications that have real-world uses.

Ethereum rose in 2020 and this year on the strength of these applications. Institutional capital has followed the maturity of DeFi, pushing the industry past previous highs.

These use cases are likely to drive Ethereum in the future. The Ethereum blockchain has more versatility than the Bitcoin blockchain. Accordingly, developers have found a home to write code, create rules, and release applications. These applications run on “smart contracts,” which validate agreements without a supervising third party.

Decentralized platforms facilitate lending, trading, and even exchange services. The most significant decentralized exchange is Uniswap which moves billions in Ether and other assets every day. Blockchain provenance is creating an innovation boom that is disrupting finance all over.

Ether is at the center of this booming decentralized economy. The Wall Street Journal reported that 7 million new accounts that hold Ethereum balances were created in the first four months of 2021. This staggering number took existing accounts to over 55 million. Ethereum is now having a congestion problem because of the sheer number of transactions on the network. Luckily, Ethereum developers have enacted a series of upgrades to take the network to a new era of scalability called Serenity.

Additionally, the rise of non-fungible tokens (NFTs) provides more dynamism to Ethereum investors. NFTs create a unique ID or pieces of digital art with set rules for transferring ownership. Content creators and artists can write into a smart contract a piece of digital art and sell it as an NFT. This represents a new era in the marketing of digital art.  Already, some NFTs are fetching millions of dollars at auctions.

The duality of DeFi applications and the NFT sector give Ethereum tremendous upside. Think of Ethereum as Google Playstore or Apple Store. It is a hub for many other financial services.  Its use-cases will continue to expand as far as the imagination of smart contract developers goes.

Purchasing and Trading Ether Is Very Simple

It is fair to state that the price of Ether has only scratched the surface. The past twelve months were only a glimpse of what Ether is capable of.

Ethereum’s power is that it is at the center of a financial revolution. The true potential of decentralized finance and smart contracts will become apparent with time.

Purchasing Ethereum is quite simple. Follow these steps:

  • Find an exchange or brokerage platform like eToro to purchase Ethereum- These platforms make the sign-up process very simple.
  • Verify your account to ensure it is secure- This process typically entails providing basic identity details such as proof of address or passport.
  • Connect a payment channel such as a card or bank.
  • Deposit fiat into your account. Alternatively, if you have other cryptocurrencies, you can send them to your wallet address.
  • Make your first ETH purchase!

To Wrap It Up

Ethereum is one of the most important innovations of the past decade. Its position at the center of the next era of finance is taking shape.

Cryptocurrencies rely on supply and demand to determine prices. This is why Ethereum and other coins still exhibit significant volatility. That said, this volatility is an opportunity in itself.

In summary, Ethereum is a sleeping giant. The use cases for this platform and asset will only continue to grow as decentralized finance takes over.

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