In This Article
Ethereum is not just a cryptocurrency; it is an ecosystem in which one can create different things on its base: dApps and smart contracts. Unlike Bitcoin, which is considered "digital gold," Ethereum has functionality which already finds its application in different sectors of the economy. Interest in this cryptocurrency is huge, and many investors are already anticipating long-term strategies, such as exchanging XMR to ETH in anticipation of continued Ethereum growth. But what awaits Ethereum in 30 years? Such a question troubles many market players since the potential of this network indeed is huge.
1. Further Development of Proof of Stake (PoS)
But perhaps the most important factor in Ethereum's future is its transition to Proof of Stake as its consensus mechanism. This began with the release of Ethereum 2.0 and will be completed over the next few years, but the impacts will be felt for decades. In 30 years, Ethereum will implement the PoS system at its core, which, besides an environmentally friendlier way of processing transactions, also gives users a chance to earn rewards through the process of staking.
The new PoS system is expected to decrease network energy consumption many times over, which is a key factor in the context of global ecological problems. Also, Ethereum will be more friendly for the common user community, as participation in the network will not require access to expensive mining equipment from now on.
2. Decentralized Applications Development
The Ethereum-based decentralized applications are going to be huge in 30 years for different industries. DeFi is already an important part of the financial world, and with technological development, it can substitute many traditional financial instruments. Payment, loan, insurance, and even asset management could be automated using smart contracts on Ethereum.
Besides, the applications on Ethereum can go well beyond the financial area. Digital identity management, elections, protection of copyright, and dozens of other objectives will become possible thanks to blockchain technology. The Internet of Things and Artificial Intelligence, currently in development, also need smart contracts, which will conduct transactions between devices without human interference.
3. Solving Scalability Problems
One of the main pains in Ethereum is its scalability. That means high transaction fees and slow data processing-the use of the network is limited in such conditions, especially during very high-load periods. But layer 2 solutions, like Optimism and Arbitrum, are solving this problem nowadays by offering faster and cheaper transactions.
In 30 years, it is envisioned that the technologies of Layer 2 will be way more developed; this means Ethereum will be able to process millions of transactions per second. This way, the network will be available for everything, from small retail purchases up to large corporate transactions.
4. Integration in Government and Corporate Systems
But increasingly, more governments and large corporations are taking an interest in the potentials of the Ethiopian blockchain. In 30 years, Ethereum can be at the center of different government and enterprise systems. Blockchain could help governments offer transparent accounting and control, secure their citizens' data, and automatically handle bureaucratic processes.
For corporates, Ethereum might allow supply chain management, bookkeeping, and even protection of intellectual property in a decentralized manner. The open and decentralized nature of Ethereum allows for the creation of global networks that could be trusted without intermediaries.
5. Price and Market Evolution
In a span of 30 years, Ethereum could see an extraordinary increase in value if the demand for its services keeps scaling. Supply will be low due to the burn emanating from the transaction fees introduced in EIP-1559, adding to the price appreciation. As Ethereum grows in users and applications, its role in the global economy is only going to grow.
As blockchain continues to gain ground in most industries, the price of ETH could increase to levels whereby many will consider it a strategic asset for long-term storage.
