How has Cryptocurrency helped in Creating a Parallel Financial System?

Blockchain technology has helped in creating a new financial system on which coins like BTC and ETH work. In reality, this very foundation of a new financial order is developed, defying several challenges. It is the reason why a natural new financial order is developed on Bitcoin is on its way. ETH is often called a coin working like decentralized finance of DeFi format. With added number of Blockchains like Cardano, AVvalanche and Solana coming into the picture, and added number of digital currency enthusiasts doubt if ETH’s pole position like top number DeFi chain remains within the limit. It is the reason why we can see a good rise of these alternative Blockchains is smoothly found. ETH has become an overemphasized idea of working for the wealthy. It is among the network which remains too clogged up, having high transaction fees. You can further explore this topic on sites like profit-builder.org to get the gist of the same.

The Challenge 

Then comes another problem, which keeps on plaguing ETH are having different brilliant contract hacks and heists. We have been hearing news about the DeFi protocol on ETH regarding the hacked due to the intelligent contract defencelessness. Interestingly, the blockchain of Bitcoin is often looked upon like someone who remains very much traditional when we talk from the perspective of intelligent contract capacity. However, we still find Bitcoin lacking things like affordability and expressiveness, while ETH offers many things. The intelligent contracts coming from ETH seem too notorious and complex to further argue unwanted complications due to their complete nature. All we could see is consistent high transaction amounts that further congest the blockchain and make the hacks remain constant. It, therefore, costs countless of the user’s big money. In other words, it appears to be a big problem to the solution. Nevertheless, it is regarded as hotly anticipated stuff when we talk about ETH 2. The excitement for enhancement remains high, and we see an excellent network having ample capacity. 

The Road ahead 

Thus it would be fair to say that ETH backfires. Some people would argue about the approach of ETH, and it is ready to go away in the house first and then are recognized while integrating like a foundation. Earlier in 2014, we saw ETH being launched like a world computer. As we see the world computer getting developed and put into the demand for infrastructure, there seems to be some rise in the massive appearance of Web 3 apps in 2017. Later in 2020, DeFi turned out to be a popular choice for the payment part. With the significance of payment seen over different financial applications growing up, there seem vocal exponents of the ETH community that have started recognizing different financial apps growing in the recent past. 

The Solution 

ETH came in 2014 like a world computer, which further improved infrastructure growth, making Web 3 popular in 2017. However, after three years in 2020, DeFi seemed to become more popular as the payment requirement came up. As the payment turned too significant, several financial applications seemed to be growing at a faster pace. Although many people within the ETH community seemed to deny finding ETH to be called money, they have the chance of making its money. So the question you get here is tricky. All the historical liability and the path depending upon ETH are moved together in the right, getting over backwards, and there is a big question mark when we talk about the fact that ETH will be playing any part in it.

Developing a Strong Foundation 

So, the big question is, how on earth we can develop a good foundation? Well, there are other Blockchains, including Avalanche, Cardano and Solana. When we talk about foundational sound money, BTC remains unmatched. When we compare to several other Blockchain assets, Bitcoin can remain immaculate in it. At the same time, BTC remains a simple monetary policy and an unlimited supply coming from human discretion, which other virtual currency based assets can offer. The monetary policy of Bitcoin acts on algorithmically-determined parameters, which further remains a perfectly predictable, emotion-driven and rule-based choice. With the help of depoliticizing monetary policy along with entrusting money creation found in the market, we can see the monetary asset by Bitcoin behaves neutrally. Bitcoin is genuinely commendable money as it offers the highest features, including security, reliability, and stability.

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