The Future of Blockchain: Competition For Dominance Increases

By Thomas Dylan Daniel | FutureProof | 23 Aug 2020

Eth2.0 outage causes insanity in crypto markets        

Ethereum 2.0, widely hailed as the future of cryptocurrency and the blockchain cloud computing technology expected to power the future of decentralized service networks, had a major outage. This was unexpected because Ethereum has never gone offline, but the testnet has been implemented to identify bugs prior to launch, and in this case has done precisely its job here.

Take it as a testament to the faith cryptocurrency investors place in Vitalik Buterin and the Ethereum team, then, that crypto token markets took a nosedive over the next few days. The network is back up, but prices still have not completely recovered from the major outage and bug discovery. Read more about the specifics here.

The bumpiness in the market included a meteoric ascent by the OMG Network token, which tripled in price on Thursday from under $3 to a peak at $10, as well as various degrees of sell-offs by other network tokens. Basic Attention Token (BAT) did well against the grain, and Augur (REP) was up today almost 50% as well. Many other tokens have sold off, however, including Tezos (XTZ) and Chainlink (LINK) and Band Protocol (BAND).

The next few days should see a rebound in price levels for these tokens, but predictions are notoriously difficult to make in these markets because there’s so much going on. The Decentralized Finance (DeFi) boom continues, and gas prices remain extraordinarily high as a result of the scarcity of Ethereum tokens.

As new practical applications continue to emerge, it will remain very important for investors in this space to pay careful attention to prices and developments on the technological front.

Technologies and applications complicate the picture

The Blockchain-based Service Network (BSN) continues to develop its interoperability framework to make it easier than ever before to utilize the various blockchains to full effect in novel applications, and networks involved seem to be successfully weathering the current market storm. EOS, Tezos, Cosmos, Ethereum itself, and NEO have all survived with relatively minimal losses, and the Compound (COMP) governance token is also experiencing a bit of a downturn. Fascinatingly, however, OMG Network seems to be benefiting from the contemporary uncertainty battering these other, better-known tokens.

OMG Network is described as an Ethereum scaling solution that allows clients to move money and digital assets on the blockchain faster and cheaper, without any detrimental impact in terms of security. The decline in prices of other valuable assets and co-occurrent meteoric ascent of OMG Network are not a coincidence — OMG Network has been selected by investors as a potential solution to the bottleneck problems Ethereum is currently facing.

The return of ETH2.0’s Medalla testnet to service should put downward pressure on OMG Network, which will face pressure during the ETH2.0 launch due to questions of relevance and necessity. Things continue to heat up as ETH2.0 faces its own technical limitations and the question of future blockchain dominance becomes more open by the day.

Contact the Author:

Thomas Dylan Daniel is a philosopher and biophysicist. Connect via his website or Facebook, or have a look at his books.

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Thomas Dylan Daniel
Thomas Dylan Daniel

Hi! I’m a philosopher, writer, and scientist from Texas. I’ve currently got two books out: And Further From Home: A collection of philosophical short fiction


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