Ethereum, the world’s second-largest cryptocurrency by market cap, has an exciting future ahead in 2023. The underlying technology behind Ethereum has demonstrated long-term potential and proven to be resilient to market volatility. Let’s take a look at why investors and traders are betting on Ethereum this year.
Ethereum and Ether
For clarity, Ethereum refers to the Ethereum network, a global decentralized software platform that facilitates the creation of blockchain-based software applications known as dApps, which form the basis for some of the most interesting applications of blockchain, such as smart contracts and DeFi. It’s these blockchain tools that are making inroads in industries such as finance, logistics, supply chain management, NFTs and digital collectibles, and so on.
Ethereum can also be used to refer to what is more properly called Ether, the digital currency that is earned and spent on the Ethereum network to keep it running and reward users. Ether is what is more interesting to traders as a speculative asset. It has historically seen huge increases in value, rising from $1.35 in 2015 to $4444.53 in 2021. The price of Ether did fall along with Bitcoin during the extended crypto winter of 2022, dropping to under $1200 at the end of last year. However, the crypto market is picking up in the new year, and Ether has already surged to over $1500 at the time of writing.
The Ethereum Merge and Proof Of Stake
There’s a reason why Ethereum has seen so much interest from investors. Unlike Bitcoin, Ethereum is actively being developed and improved to offer more value. The latest significant update was called The Merge and rolled out toward the end of 2022. It increased the speed and lowered the cost of transactions on the network by upgrading from a proof-of-work consensus model to a proof-of-stake method. This also cut down energy consumption on the network by 99%.
Innovations like this are what give Ethereum its potential to overtake Bitcoin in 2023. Whenever a company commissions new blockchain software development, there’s a good chance that it will be based on Ethereum, making it more popular for developers, investors, and traders.
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AI Optimization Disruptive Researcher – Chief Development Officer and CoFounder at AccelOne – Blockchain Certified Developer – Autonomous Cars Engineer – Industrial Engineer – McLaren Fan
My Tech journey started 38 years ago with a Yamaha CX5M Computer / Synth, and since then, I have had a nonstop career adding experiences in several industries and technologies. I am an AI researcher and Ph.D. student and the Chief Development Officer of AccelOne. I lead a team of passionate talent in software engineering services, which are delivered from LA to the US. I have a strong technical background with more than three decades of experience in complex project and team management in various areas, including product design and development in Entertainment, eCommerce, Retail, Logistics, Business Intelligence, and Financial Services. I was CTO of Axigma Technologies, managing mobile business and consumer development projects for brands, including The Marketing Store and C9W. I founded the computer training institute IEC, which provided training services in several different programming languages and design and animation tools. In 2005 I founded Routeck, a development software company devoted to special projects (such as open-source firmware programming), credit card reconciliation, and specific products for retail. I was Development Manager at Infinite Corporation, managing their iSeries and Web products, a former Senior Software Engineer at COTO, and a Senior Web Applications Engineer at HSBC.
