Analyst believes Ethereum’s ETH 2.0 will bring the largest economic shift in crypto
Ethereum offers a high growth potential with its low entry barrier for adoption, with its smart contract protocol and lack of fees. With enough merchants onboarding for quick transactions and low transaction fees, and a tech press that will support development of the technology, ETH has great upside potential.
The upcoming release of Ethereum’s second iteration, ETH 2.0, has been highly contested, but one data analyst believes it could be the driving force behind the largest economic growth in society. Adam Cochran, a professor of information science at Conestoga College, said that Ethereum’s economic policy will result in a reduced supply and a drastically increased demand due to the attractive incentives from staking.
Ethereum is poised to usher in a new era of digital currency that could create a cryptocurrency universe with trillions of dollars in market value and hundreds of billions of users. But one of the key questions raised is whether this monumental shift in currency handling can be rolled out in an optimal manner.
According to Cochran, the Phase 0 of Ethereum’s second iteration will be what gets the upcoming economic shift going. In a lengthy Twitter thread, the information science professor and former marketing executive at Dogecoin laid out some of the things that will happen once the Ethereum network becomes a proof-of-stake one.
ETH needs to use this growth to better understand and tackle the financial services and banking industries and we believe that this will only be possible if the network can secure a real money economy. ETH has a lot of new and innovative protocol layers that will continue to improve.
Besides staking, Ethereum 2.0 will bring about scalability, allowing dApps built on the network to handle more users and increase their consumer viability. With more applications available, the network is set to see a significant uptick in users. Cochran said that the result of this was simple—the more actual demand there is to use the system then the more the price goes up, because there is a real underlying value being created for the user.
From the current regulatory environment, it is clear that blockchain technology is here to stay and is bound to have a lasting impact on business and society. Blockchain technology is upon us, and its resiliency and pervasive nature will be difficult to contain. Ethereum’s smart contracts represent a significant advancement to how we interact with each other on the web and, more specifically, have we ever experienced making business decisions.