Ethereum

<p>Despite technical challenges and expensive transaction fees, Ethereum (ETH), the second-largest cryptocurrency, continues to attract investment and interest.</p><h3 id="the-importance-of-being-first-to-market-and-the-network-effect">The Importance of Being First to Market and the Network Effect</h3><p>Ethereum was the first platform to use smart contracts and distributed applications, establishing a significant network effect. Ethereum was one of the first platforms of its sort, and now it hosts a thriving ecosystem thanks to the efforts of countless developers and users. ETH has been able to solidify its market position thanks to its early adoption.</p><p>Examples of successful dApps that have helped cement ETH&#39;s position in the market include Uniswap, Compound, and Aave, all of which operate in the DeFi industry. Ethereum&#39;s widespread adoption has made it difficult for competing platforms to gain traction, even if they provide superior technology.</p><h3 id="support-for-staking-for-holders-of-eth">Support for staking for holders of ETH</h3><p>In PoS networks, staking is used instead of mining to verify transactions and reward participants in maintaining the distributed ledger. Staking is one of the passive income options in the cryptocurrency market because the returns are comparable to interest on a bank deposit.</p><p>According to ConsenSys&#39;s Ethereum 2.0 Staking Ecosystem Report, staking ETH involves either operating one&#39;s own validator nodes or contracting with a third-party staking service. The paper also provides a summary of survey results from 287 participants; 32.8% aim to operate their own validator nodes, while 33.1% want to outsource staking to an external service.</p><p>Participants planning to stake their ETH and run validator nodes should expect an average payment of 5.8 percent, while those planning to stake through a third-party provider can expect a higher average reward of 7.6 percent, according per the research.</p><h3 id="gaining-a-competitive-edge-with-defi-solutions">Gaining a competitive edge with DeFi solutions</h3><p>As of May 2020, 60% of the value of all Ethereum DApps was in decentralized finance, making it a very important part of the Ethereum community. Over 2.5 million ETH, or more than $600 million, are locked in DeFi DApps at the time of this writing. This number is likely to rise as people look for alternatives to traditional banking services.</p><p>With technologies like sharding, which were made possible by the ETH 2.0 upgrade, developers can make the network much more scalable. This is projected to greatly increase the number of transactions that happen every second. In this way, DeFi apps might become more like regular ones.</p><p>#DeFiEthereum2.0</p>

Look Into How Ethereum 2.0 Will Affect Defi

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