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Ethereum has the confidence of billions of companies, but it has to solve its problems

2 min read
Ethereum has the confidence of billions of companies, but it has to solve its problems

Ethereum is a blockchain that has gained the trust of several billion dollar companies in recent years. If there were a showcase or a portfolio of its successes, it would surely find that companies like Microsoft and Ernst & Young are also using the Ethereum protocol.

Microsoft was perhaps the earliest multi-billion giant to begin testing Ethereum. It was already in 2015 and it is still true that Azure offers services based on Ethereum within its cloud.

Engaging large corporations in the blockchain industry is undoubtedly a good sign, especially when these companies do not develop their own solutions, but use what decentralized projects offer themselves.

Ethereum is now a truly large blockchain network with many developers working on decentralized applications (DApps) and what is currently an increasingly hot topic – decentralized funding (DeFi). At DeFi, Ethereum plays a particularly dominant position.

However, the higher the interest in the blockchain Ethereum, whether it be a corporation, a developer or a DeFi, the more clear and discernible its sensitive aspects are. It is particularly vulnerable to the scalability of transactions. If the use of this blockchain suddenly increased rapidly, Ethereum could hardly stand without harm. While Ethereum is currently plaguing mistakes from the past, there are competing projects that have taken longer to develop but seem to be better prepared for mass adoption and billions of transactions – for example, Cardano (details here).

Despite these pitfalls, Ethereum still has some time to take the necessary steps and improve its technology to meet the demands of the new decade. The transition to the announced new generation of Ethereum labeled “Ethereum 2.0” could play a key role in this. The latest step that Ethereum approached this goal was the hardfork Muir Glacier realized just a few days ago. With the transition to Ethereum 2.0, the entire ecosystem will no longer work on the Proof-of-Stake (PoS) concept, not the Proof-of-Work (PoW) concept, which will significantly change the way transactions are validated, which will also affect network scaling.


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