Ethereum vs other blockchains, next?

Blockchain technology has revolutionized various industries by providing decentralized, transparent, and secure solutions. While most people are familiar with blockchain in the context of cryptocurrencies like Bitcoin and Ethereum, it is important to note that there are different types of blockchains with unique characteristics and use cases. In this article, we will explore the various types of blockchains and their distinguishing features.

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Public Blockchains:

Public blockchains, such as Bitcoin and Ethereum, are open to anyone who wants to participate. These blockchains are decentralized and transparent, allowing anyone to validate transactions, participate in consensus mechanisms, and maintain a copy of the entire blockchain. Public blockchains often rely on proof-of-work (PoW) or proof-of-stake (PoS) consensus mechanisms to secure the network.

Private Blockchains:

In contrast to public blockchains, private blockchains are restricted to a specific group of participants. They are often used by organizations for internal purposes, such as supply chain management or interdepartmental collaboration. Private blockchains offer higher privacy and control compared to public blockchains, as they require permission or invitation to join. Consensus mechanisms in private blockchains can vary, including voting systems or consensus algorithms tailored to the participants’ needs.

Consortium Blockchains:

Consortium blockchains are a hybrid between public and private blockchains. They are governed by a group of organizations rather than a single entity. Consortium blockchains provide a semi-decentralized approach, allowing multiple pre-selected participants to maintain the blockchain and validate transactions. They are often used in industries where multiple organizations need to collaborate while maintaining some degree of control and privacy.

Hybrid Blockchains:

Hybrid blockchains combine the features of both public and private blockchains. They leverage the benefits of public blockchains, such as decentralization and transparency, while allowing for private or confidential transactions when necessary. Hybrid blockchains are suitable for scenarios where certain transactions or data need to be kept confidential while still benefiting from the security and immutability of a public blockchain.

Federated Blockchains:

Federated blockchains involve a group of pre-selected entities that maintain the blockchain network. These entities act as trusted nodes and collectively validate transactions. Federated blockchains offer faster transaction times compared to public blockchains since they do not require consensus from the entire network. They are commonly used in financial systems or interbank transactions, where speed and efficiency are crucial.

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What about Ethereum, as a “leader” blockchain?

Ethereum, the world’s second-largest cryptocurrency by market capitalization, has gained significant attention since its inception. Launched in 2015, Ethereum is not just a digital currency but also a versatile blockchain platform that enables the development of decentralized applications (dApps) and the creation of smart contracts. In this article, we will explore the birth of the Ethereum blockchain and delve into its remarkable journey and notable developments.

Birth of Ethereum:

Ethereum was conceptualized by Vitalik Buterin, a young programmer and cryptocurrency enthusiast, in late 2013. Buterin proposed a blockchain platform that could support the execution of smart contracts, which are self-executing agreements with the terms of the contract directly written into code. These smart contracts would enable the automation of complex transactions without the need for intermediaries.

Development and Launch:

In 2014, Buterin, along with a team of developers, launched a crowdfunding campaign to fund the development of Ethereum. The campaign was highly successful, raising over $18 million in Bitcoin (BTC). With the necessary resources, the team began developing the Ethereum blockchain, utilizing a new consensus mechanism called “proof of stake” (PoS).

Ethereum went live on July 30, 2015, with its genesis block, marking the official launch of the blockchain. The platform introduced its native cryptocurrency called Ether (ETH), which serves as a means of exchange within the network and acts as an incentive for miners.

Smart Contracts and Decentralized Applications:

One of the key innovations of the Ethereum blockchain is its ability to execute smart contracts. Smart contracts allow developers to create decentralized applications (dApps) that can run on the Ethereum network. These dApps have the potential to revolutionize various industries, including finance, supply chain management, gaming, and more.

The DAO Hack and the Birth of Ethereum Classic:

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In 2016, a major event known as “The DAO Hack” shook the Ethereum community. The DAO (Decentralized Autonomous Organization) was a prominent Ethereum-based project that aimed to be a venture capital fund governed by smart contracts. However, a vulnerability in the smart contract code was exploited, resulting in the theft of a significant amount of Ether.

To mitigate the situation, the Ethereum community executed a controversial hard fork, which involved rolling back the blockchain to a previous state. This decision was met with resistance from some community members who believed in the immutability of the blockchain. As a result, Ethereum Classic (ETC) emerged as a separate blockchain, maintaining the pre-fork version of Ethereum.

The Road to Ethereum 2.0:

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Recognizing the limitations of the original Ethereum blockchain, the Ethereum community initiated a significant upgrade known as Ethereum 2.0 or Eth2. This upgrade aims to address scalability, security, and energy efficiency issues by transitioning from the proof-of-work (PoW) consensus mechanism to proof-of-stake (PoS).

Ethereum 2.0 will introduce shard chains, which will enable parallel processing of transactions and increase the network’s capacity. The upgrade will be implemented in multiple phases, with the Beacon Chain being the first phase that went live in December 2020. Ethereum 2.0 is expected to bring about faster transaction times, lower fees, and greater sustainability.

Super chart of Ethereum, crypto summer?

It is important to understand that past returns do not guarantee future returns, but we can make an approximation of where the price of the ETH token, the cryptocurrency of the Ethereum network, could go.

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The direct chart of ethereum, on a monthly chart, suggests that exciting moments await us in the future, with a new bullish structure under construction and indicators turning higher, in this theoretical long-term bullish (April picture).

And now, in a update chart:

The long-term graph is indicating what appears to be a super triangle (ceilings at the beginning of 2018 and in 2021) and floors at the beginning of 2020 and at the end of 2022 and recently. What will be next?

The crypto summer comes after the consolidation of the crypto spring.

Is Ethereum, in strong support, in this triangle that I am showing you?

What will happen if he doesn’t lose support and decides to go back to the top/resistance of the triangle?

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Many answers without answering, but we are left with this one: Many blockchains, but with the strength of Ethereum, few. Fundamentally, therefore, it is likely to have a strong long-term move back to the top of the triangle.

It is not a buy recommendation.

Good luck with your investment decisions.

And good weekend !!