Ethereum isn’t trying to be the next Bitcoin; it’s got bigger plans. According to Bitwise CEO Hunter Horsley, Ethereum aims to overhaul outdated Web2 systems and traditional finance, not just compete with Bitcoin as a currency.
Ethereum: The Operating System of the Future
Horsley likens Ethereum to a phone’s operating system. Just like many apps run on a single OS, various applications—like DeFi services, data storage, digital IDs, and token markets—can all operate on the Ethereum network. This allows developers immense freedom and shifts the focus from simply the price of tokens to their actual use. The competition isn’t with Bitcoin, but with the limitations of Web2 and legacy financial systems. Horsley predicts a shift away from simply focusing on market capitalization of crypto assets in the coming months.
Open and Innovative
Ethereum’s open nature is a key strength. Anyone can contribute to the network without needing permission. This fosters rapid innovation and upgrades without the disruptive hard forks common in other systems. The public nature of the code allows for global collaboration and adaptation.
Faster and More Efficient
Ethereum’s modular design is a game-changer. Tests have shown massive improvements in transaction speeds and data throughput. This is achieved by dividing tasks between different parts of the network, making it more efficient and accessible to a wider range of users, even those without expensive hardware.
Community Reaction and Market Performance
The community is largely positive about these developments, viewing Ethereum as a step beyond the limitations of Web2, offering services that traditional institutions can’t. While some debate continues about Ethereum’s impact on Bitcoin’s development, the recent price surge of ETH reflects a growing confidence in the network’s future. The price increase isn’t just hype; it’s fueled by the belief in Ethereum’s technological advancements and the potential of new projects built on its platform.