3 Reasons Not to Ignore Ethereum

Although there are thousands of cryptocurrencies out there, Bitcoin tends to monopolize our attention. This sometimes leaves Ethereum in the dark. This is unfortunate because the world's second-largest cryptocurrency is very different from its bigger brother and is a compelling investment in and of itself. Let me walk you through the reasons Ethereum deserves a large place in your crypto portfolio.

1) Ethereum has a deep ecosystem

Launched in 2015, Ethereum is the world's first functional blockchain allowing for smart contracts to be built on top of the network. Smart contracts are computer programs that execute automatically when two unrelated parties meet the conditions of a particular transaction. This is completely different from Bitcoin which was designed as a peer-to-peer digital cash system.

It is estimated that 20 percent of web3.0 developers are working on Ethereum. It is no surprise that Ethereum has the biggest ecosystem of decentralized apps compared to any other cryptocurrency out there. These apps range from decentralized finance protocols and gaming to social media and marketplaces for NFTs.

As this ecosystem continues to grow, so too are the number of real-life applications in the blockchain increasing. This makes for a compelling option to buy Ethereum and HODL!

2) Ethereum is Now Even Better

On September 15th, 2022, the Merge tool place. This is where Ethereum moved off the slow energy-intensive proof of work consensus mechanism to a faster proof of stake consensus. It is estimated that the blockchain will use 99 percent less energy once fully moved over to the proof of stake.

The proof of work consensus algorithm uses complex problems for miners to solve using high-powered computers. The problems are solved using trial and error and the best example is Bitcoin. Proof of stake requires miners to pledge an investment in digital currency before validating. They need to put up stakes with coins of their own. Miners also show how long they have been validating transactions. The choice of who validates each transaction is randomly using a weighted algorithm, which is weighted based on the amount of stake and the validation experience. The main issue with proof of stake is the extensive investment upfront to buy an investment stake.

You could argue that the merge is one of the most significant events to occur in crypto in the past 10 years. This will make the Ethereum platform even more conducive to application development. O the proof of work consensus, network fees were high and speeds were slow, which hampers the efforts of small contract developers.

Now that Ethereum has moved to proof of stake, long-term holders can earn passive income on their Ethereum by staking their coins. There are two ways to do this. You can buy Ethereum, transfer it into a blockchain wallet and then join a staking pool which is a group of investors who stake their funds to improve their odds of earning rewards. Another easier option is to stake through a centralized exchange such as Binance. This process takes a few clicks and allows you to stay earning rewards on your Ethereum instantly.

3) Ethereum is still the King of NFTs

Although Solana and Polygon have gained traction of late in the NFT space, Ethereum is still the 800-pound gorilla. As the original blockchain that introduced smart contracts to the world and enabled the advent of NFTs, NFTs on Ethereum have a cache that other blockchains have yet to match, and individual sources from collections like CryptoPunks and Bored Yacht Club have routinely sold for hundreds of thousands of dollars or more. NFT marketplace OpenSea, which originally was exclusively for Ethereum NFTs, was valued at $13 billion in its most recent funding round.