Ethereum can give us the blueprint for building the crypto environment of tomorrow. In a world marching towards carbon neutrality, cryptocurrencies are receiving much scrutiny from virtually all corners of the market. Currently, studies suggest that Bitcoin mining alone could push global warming beyond 2°C. While Ethereum mining emits 11 times less CO2, it still isn’t a viable option when pursuing a future of sustainability.
The latest series of upgrades of the Ethereum network, known as Eth2, replaces mining with staking to reduce computing power significantly. As a result, Ethereum’s carbon footprint is estimated to drop by 99.95%. The bottom line is that such improvements will allow crypto assets to become a part of the solution for the net-zero pathway rather than the problem that prevents it.
Among the key benefits that Ethereum might give us in the long term is to unlock the era of Web 3.0, where decentralized applications allow users from all across the world to interact and make transactions without intermediaries. As a result, it can give big tech companies’ offerings a run for their money. Furthermore, it can unlock the crypto economy and make it affordable and accessible to virtually anyone worldwide. That way, humanity can address the problem with the unbanked population that today stands at over 1.7 billion.
Another essential but often ignored contribution of Ethereum is opening the niche for competitors. New projects like Solana, Cardano and Avalanche are entering the market with blockchains with greater scalability and processing capacity. However, so far, none of them has succeeded in becoming the “Ethereum killer.” While dethroning Ethereum seems unrealistic in the future, the increased competition and natural selection principle enforced by the new entrants will help further grow and develop the niche.