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October 4, 2022
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Ethereum will “eat” Wall Street – believes prof. Aaron Wright –

Aaron Wright, professor at the Cardozo School of Law, believes Ethereum could “eat” Wall Street in the next 10 years. The reason is the projects that are created on the basis of the platform.

Ethereum will win thanks to DAO and tokens

The professor outlined three key reasons why Ethereum can compete with the traditional financial sector. These are Autonomous Decentralized Organizations (DAO), Non-Convertible Tokens (NFT), and Personal Tokens.

It is worth adding decentralized finance (DeFi), which became this year’s investment hit. Currently, over USD 14.9 billion is “locked” in DeFi protocols, and the cumulative market capitalization of all DeFi tokens has reached the level of USD 18.8 billion.

Wright has now explained that DAO, NFT, and personal tokens, in turn, can greatly enhance Ethereum’s usability.

DeFi’s not starting to eat Wall Street. Ethereum yes – he thinks.

In his opinion, DAOs in particular could become the focal point of the next phase of Ethereum’s growth, as they can be adapted in many different ways to the needs of the market. The DAO is by definition an organization managed in a fully decentralized manner. DAO members would, for example, vote for certain decisions, allowing the community itself to lead the organization.

DAOs can therefore be an investment fund, a project working on something or just a community. Typically, DAOs also have a basic token called a management token. Thanks to it, members of the organization can vote for approval of given decisions.

For example, the DAO model can be used in a venture capital fund. Under such a fund, token holders could dictate further fund operations.

Ethereum 2.0

In the past, however, when Ethereum saw a significant increase in user activity in both DeFi, DAO and other decentralized applications, there were big problems with scalability. Now the new version of the Ethereum blockchain will be a rescue, which will be able to process thousands of transactions per second. It’s about Ethereum 2.o.

In the medium to long term, the Ethereum “two” will therefore provide a solid foundation for decentralized applications. Consequently, should Ethereum begin to be widely used for multiple purposes, the project’s blockchain will already deal with this problem.

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