You probably know ethereum for a couple of things including; the second biggest cryptocurrency, worth over $1000 per token and probably, one of the most used blockchain till date. But if you have a diversified cryptocurrency portfolio, you probably have few ethereum-based tokens on your watch. Ethereum blockchain has been an exemplary of what a blockchain should be; if it should really be called a technology.
Slow, bulky, costly and boring wallet address. These four words simply describe ethereum blockchain’s numerous issues. But despite these hinges, new projects are growing regularly under its watch. A greater percentage of altcoin projects owe their existence to the ethereum blockchain.
From a measly $0.4 ICO price to one of the biggest cryptocurrencies and the most used blockchain network. The road hasn’t been so easy, but the ethereum project has applied the guerilla tactics on its way up. Offering what most other blockchains couldn’t offer, it has shone light on what could be achieved by an actual technology; rather than a ‘store of value’.
On August 30, 2014, ethereum announced the end of its Public token sale. Raising $16 million to foster the development of what would become the most prominent blockchain project, arguably. Selling each ether coin at an average price of under 0.5 USD, ethereum blockchain’s native coin grew into one of the costliest crypto coins. Since its initial offering, it has tumbled over 3000 times to attain an all-time high of about $1400.
A $1 investment in ethereum at ICO price would worth over $2000 currently. Only one cryptocurrency project can proudly boast of such plentiful return – bitcoin. Ethereum’s ROI influenced the popular believe in the profitability of getting involved in cryptocurrency ICOs. Every investor dread missing out on ‘the next ethereum’. Ethereum’s massive gains sequel to its initial coin offering paved way for an era of new projects making their way into the crypto space via fundraising programs.
But this in fact is not the only way ethereum has pioneered the ICO boom and the proliferation of blockchain projects.
Ethereum blockchain features a smart contract platform that allows a developer create new cryptographic token on the ethereum blockchain. These cryptographic tokens run parallel to ethereum’s ether coin. In addition to the ethereum coin, other tokens can run on the same ethereum blockchain. This feature set off a spontaneous effect and has set the crypto space ablaze since it was first announced and used.
For intending cryptocurrency developers, creating a new blockchain is only a choice, not a necessity. But whether a new project wishes to develop its own blockchain or not, ethereum’s smart contract platform simplifies the process of raising funds to develop its blockchain. New projects’ valuation can be easily tokenized via ethereum tokens. To raise funds for the projects’ development, founders would simply offer these tokens to investors. If good tokenomics are applied, these tokens would grow in value with the project.
Ethereum has housed many notable projects before they launched their mainnet, the ICO boom was a brainwork aided by the ethereum blockchain. A good percentage of autonomous altcoin projects only surfaced and survived because they utilized the ethereum blockchain. Ethereum is far from done in its duty of bringing new projects to life and housing existing ones while spreading the real virtue of blockchain technology.
A good number of altcoins have developed smart contract platforms which allow users mint new and circulate new tokens on the blockchain. Tron network has rivaled the ethereum network on all round. With a cheaper and faster blockchain, Tron network solves some of the biggest issue of the ethereum blockchain. Despite this, ethereum retains this pioneer prestige and continues to maintain its spot amongst the very elite projects.
It is pertinent to say that ethereum paved way for a new generation of cryptocurrency and blockchain projects whose real focus is creating utility and attempting to offer solution to real world and blockchain issues. No doubt, ‘shitcoins’ as well has grown under ethereum’s wings, but the number of reputable projects growing from this unique blockchain supersedes.