Ethereum Evolution: From Smart Contract To DeFi

Ethereum Evolution: From Smart Contract To DeFi

By Cryptonite | Cryptonite | 26 May 2020



Ethereum went live on July 30 2015 with an ICO of around 11,9 million ETH at 0,30 Dollar (in few month will be the fifth  anniversary wow), since then the second cryptocurrency by capitalization was one of the most innovative, this isn’t a post in which I want to talk about the price but I am focusing on Ethereum itself.

The first innovation was the smart contract a place where programmer was able to develop them project without create a blockchain but in a open source blockchain that allow may user to operate with the same ecosystem.

This was the starting point of many ICO (initial coin offering) that are the equivalent of the IPO of the companies that want to be listed on a stock market, this ICO facilitator service was widely used and now we are plenty of new token that operate under the ERC20 that is the technical standard used for many project.

Of course the next step was the fun and the gamble, than we saw a wave of “decentralized games” and Decentralized Casino that flourished, as any new project even Ethereum wasn’t perfect than with a lot of project on it the system slowed down and the famous cryptokitties card game ring the alarm of a first problem…. The scalability.

A big number of transaction was a big problem…. And still now is a problem that Ethereum try to solve.

Ethereum is undoubtedly the king of the Dapp, in the screenshot taken from the we can see the vast predominance of the application that run Ethereum versus all the other blockchain.



The next chart show how much growth the gambling section of this world, this is still a big number compared to the total of the application, only the “games” section is bigger than the casino, click here to go to the page where I found those chart and have fun looking the evolution of any categories :) .




Last 2 years  new wave of Stablecoin & DeFi


In the last two years we found a new wave of projects that pointed on a different direction, the stable coin was born for make easy to exchange different token/ coins and to transfer founds in a easiest way, a function of stabilization that was needed also when you want to “parking” your liquidity  waiting for the right moment when invest in your favourite project.

With the token pegged to the Dollar another necessity was born, how to make those funds profitable? Or how to make any crypto funds profitable while we not trade them…. In our help came the so called DeFi, the decentralized finance answer also to this question.

With this new projects in the crypto space was completed, the financial apps filled a gap that at the start was just a small fraction of the total Dapps, you can click on the link  for see the evolution of the DeFi market.

Right now the crypto world is a much more complex world than five years ago but the evolution gave us more opportunity and more utilities, this put the spotlight on this world and took other kind of investor to enter, the institutional.

The institutional investor are buying Ethereum in big quantity since the start of 2020 and the Grayscale report  show that the growth of the trust fund dedicated to the Ethereum is now more than double as the new investor bought more quote than in the entire history of that fund.

Not always institutional investor mean “trouble” as usually they have a medium/ long term view on them project, this will bring stability and prestige on Ethereum itself, the problem now is more on the side of showing stability of the blockchain and a fair growth of tps (trade per second).

We are finally arrived at the so called Ethereum 2.0 with the change from PoW to PoS, this, among other things, may help the increase of the trade per second that must go up as the Dapps are not stopping to multiply and the investors expect more reliability, scalability and faster execution.

Thanks for reading and hope you enjoy this post


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