Understanding the requirement of Ether, which actually isn’t needed
Introduction
According to many of the cryptocurrency experts, it is estimated that the native asset value of ETH might reach 0. One must keep in mind, that these do does not refer to the Ethereum network itself.
The people in the cryptocurrency space who assume that the prices of Ethereum would not fall are in a wrong notion as for the amount of competition as well as the scalability that the network faces, it has made the value to fall down inevitably.
According to the experts, if Ethereum has to undergo a widespread adoption and dominate the overall cryptocurrency market then the prices of ethereum must fall. The article explains the various value propositions put forth by the official Ethereum organization.
Building amazing applications
The Ethereum platform is natively designed for the development and usage of smart contracts in a highly robust, secure, and easy manner. The smart contract powered applications have a globalized recognition as well as ownership of the property apart from having a great value in the market. Therefore the platform easily enables the Ethereum developers, in order to create a whole financial market, records of debts and liabilities are stored, and also the future trading is made automatic through a predefined instruction. In a nutshell, all the all the risk factors of decentralized applications would be eliminated if Ethereum succeeds as a value proposition.
No future of gas
It is generally observed that Ethereum asset, ETH has no actual value proposition as it is not being much concentrated upon by the official Ethereum organization itself. However, ethereum gas is the way in which, we pay transaction fees to the network.
The working mechanism of Ethereum gas can be perceived very easily through an illustration. Imagine that that four people are sharing a car which is a smart contract which needs to reach a particular destination. The driver of the smart contract or the car just need to add fuel to the car to make it run, this fuel is nothing but with ethereum gas. Practically, the fuel is utilized by the engine, but as in when compared to the Ethereum network there is actually no need of ethereum gas prices to run a smart contract. It is just a theoretical concept, therefore, there is an actual value proposition for ETH as gas. This might probably make Ethereum dead.
Eliminating the ethereum based fees
Imagine a network where the transaction fees are collected using the Ethereum gas. The intermediary Ethereum gas which the users pay to the network is just a conceptual abstraction. The users can also be the transaction fees directly to the minor in any cryptocurrency of their choice, the Ethereum is just an intermediary and common platform for everyone to pay the fees for their convenience.
We can explicitly specify the technical specifications of a particular miner with respect to a smart contract and their ethereum based fees can be debited by directly depositing the fees in the cryptocurrencies of their choice within a smart contract, and the smart contract would take care of everything else. This is probably another reason which would make Ethereum dead.
They are not able to prove Ethereum economic and abstraction and this will make Ethereum dead
The official organization behind Ethereum have come forward with 4 different explanation for the Ethereum’s value proposition, which turns out to be not much noteworthy enough.
Lack of software support for the network.
According to experts it is estimated that the software requirements are highly complex as well as unreliable as their native asset of ethereum is a bit different from the ERC 20 best tokens, therefore, especially added functionalities must be made available in the wallets in order to make both of them acceptable. The argument might render Ethereum dead.
Difficulty in the pricing of ethereum.
The market abstraction of ethereum is difficult due to the inevitable need of monitoring market prices. They need to predict future prices, in order to get the high return from the ethereum blockchain network.
The existence of smart contracts which is not linked to the tokens.
The smart contracts have the capability to initiate a transaction and pay the fees in any cryptocurrency token of their choice. The contracts can also be integrated with decentralized exchanges in order to fulfill the order books. However, not all the smart contracts are linked to the Ethereum based tokens.
The requirement of Ethereum for its Proof Of Stake.
Also, the Proof of stake algorithm with Ethereum network incorporates doesn’t actually require any kind of Ethereum and would probably make Ethereum dead.
