With the support of 1.1 billion funds, Microsoft, Samsung, and JPMorgan Chase are supported by most giants. Why is it underestimated when it is flourishing?
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On May 22, the Ethereum Foundation released its 2019 Spring Report. The report mentioned that in the next 12 months, the foundation plans to invest $30 million in key projects on the entire Ethereum ecosystem, regardless of whether the price of ETH rises or falls, this budget will not be affected.
Obviously, the rise of ETH is inseparable from Ethereum's spare no effort to build its ecology. At the same time, many large companies have become partners of Ethereum. These two important factors have laid the foundation for the future of Ethereum and also determined that ETH may explode at any time.
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Big money, help!
While Bitcoin has some very exciting second-layer payment technologies, the core technology hasn't changed much. Especially after the interruption of the Bitcoin Cash upgrade, any changes to the Bitcoin Core group will be deployed very carefully.
In contrast, Ethereum is constantly improving, forking and evolving. Its smart contracts and digital applications are in a relatively early stage, with hundreds of companies actively developing on the platform.
According to CoinDesk, in 2018 the Ethereum Foundation supported 90 different projects and donated up to $27 million. Among them, the 23 largest donations were all used for Ethereum projects focused on expansion.
On May 22, the Ethereum Foundation released its 2019 Spring Report. It is revealed that the foundation currently holds about 0.6% of the total amount of ETH, about 640,000 ETH, equivalent to about 160 million U.S. dollars in legal currency. In addition, the Ethereum Foundation has allocated some cash reserves.
And in the next 12 months, the foundation plans to invest 30 million US dollars in key projects on the entire Ethereum ecosystem. The $19 million in the budget is planned to support the development of "ETH 2.0", $8 million to support the development of "ETH 1.0", and $3 million to introduce and motivate development talents.
$19 million to support Ethereum 2.0 development. The Ethereum Foundation pointed out that as a high-profile technical project, the development of Ethereum requires a lot of resources. In particular, resources need to be invested in major projects such as Ethereum 2.0 and in encouraging the academic community to participate in the development of Ethereum.
In addition to using more than half of the budget to develop Ethereum 2.0, the Ethereum Foundation also allocated $8 million to maintain the existing Ethereum network. The Ethereum Foundation believes that Ethereum is the underlying public chain of hundreds of thousands of DApps, involving billions of dollars in digital assets, and it is very important to work hard to maintain the current Ethereum network.
The Ethereum Foundation uses $3 million in its budget to support engineering and developers, including maintaining developer relationships, and developing developer education and training. The foundation also emphasized that developer input is more important in Asia, where Ethereum has significant growth opportunities.
In addition, the $3 million budget will also cover marketing expenses for the technical crowd and Ethereum DApp users. The Ethereum Foundation believes that it will also be of great help in raising public awareness of Ethereum.
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Great company, support!
More importantly, we see that more and more large international companies have begun to develop their own blockchain application projects based on the Ethereum platform.
On May 7, Microsoft released a set of tools that allow users to build Ethereum-based applications on its cloud computing platform Azure. The founder of Microsoft BuildAzure announced in a blog that the new Azure blockchain development kit developed for Ethereum will help developers create and deploy Ethereum-based applications on the Azure blockchain service or on the blockchain.
Microsoft explains on its GitHub: "Azure Blockchain Service is a managed Ethereum service that you can deploy and interact with and integrate with other Azure-based services such as Azure Flow, Logic Apps Programs or storage services, such as SQL Server or Cosmos DB, etc." Both Windows 10 and macOS support this extension, and can run in Azure virtual machines.
Last month, Microsoft and the Enterprise Ethereum Alliance (Ethereum Blockchain Alliance) jointly launched a token construction toolkit to help enterprises design and create cryptocurrency tokens suitable for their specific needs. It also launched the "proof-of-authority" Ethereum consensus on Azure, replacing the proof-of-work mining process commonly used on public blockchains.
And JP Morgan Chase, Starbucks, Nintendo, Sony and other companies have become the first customers of the Microsoft Azure cloud platform. JP Morgan created Quorum, which is the enterprise equivalent of Ethereum. And it will use Microsoft's cloud service Azure to promote Quorum. The partnership with Microsoft will be a springboard for Quorum's possible independence from JPMorgan. Starbucks will use Microsoft's Azure blockchain service to track coffee production. It is reported that the system will allow customers to track their coffee production process and will bring potential financial opportunities for back-end coffee bean growers. The cooperation between Sony and Microsoft is not to jointly develop a new game platform, but Sony hopes to use Microsoft's advanced Azure cloud computing technology to develop games. It is rumored that Nintendo also plans to cooperate with Microsoft on the Azure cloud computing service.
There are also rumors that the Samsung blockchain working group is building an Ethereum-based blockchain mainnet. However, this work is still in the "internal experimental" stage. It is understood that Samsung is considering the private chain model, but it has not been confirmed yet, and a hybrid model of private chain and public chain will not be ruled out in the future. In addition, it is reported that when the development of this blockchain is completed, Samsung may also launch a token called "Samsung Coin".
Just recently, EDF, the world’s fifth-largest electricity company with a market capitalization of $33 billion, is partnering with Ethereum application iExec for a new test. The company has launched its visualization simulator software GPUSPH at iExec. With this capability, EDF can test how programs run on a blockchain rather than a more normal computing environment.
Bosch, the world's largest auto parts manufacturer, is testing a car charging station project based on the Ethereum blockchain, proposing a new vision for charging electric vehicles.
Beyond that, there are organizations and alliances that support and expand the Ethereum community. The Ethereum Enterprise Alliance (EEA), established in 2017, has grown from only 30 founding members to more than 500 members after two years of development. The alliance is dedicated to integrating blockchain technology with corporate institutions. These startups, businesses, foundations and organizations are all coming together to contribute to and benefit from the continued development of the Ethereum ecosystem.
The underlying technology of Ethereum has penetrated into giant enterprises, and continues to expand and develop, and its branches are flourishing. As for other performance and scalability, it can be handed over to other chains to solve, and maintain the stability of the underlying protocol just like Bitcoin The underlying application has been expanded, and it is far ahead of competitors!
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Ethereum may explode at any time
Recently, more and more traditional financial giants have expressed interest in the cryptocurrency market. Brian Kelly, chief executive of encryption investment firm BKCM, expects this trend to continue, with "institutional groups" entering the market in batches in the first half of 2019.
A survey conducted by Fidelity's digital asset division also corroborates this claim. The purpose of the survey was to understand the views of pension funds, family offices, hedge funds, endowments and foundations on owning cryptocurrencies. The survey found that 47% of institutional investors believe that digital assets are worth investing in, and the same proportion of institutional investors appreciate the innovation of encryption technology. Just as importantly, 46% of respondents like the low correlation between cryptocurrencies and other asset classes.
Therefore, in the allocation of digital assets, in addition to BTC, ETH will be the best choice.
Bitcoin proponent Mike Novogratz has made a strong case for Ethereum. During the Ethereal Summit, the founder of Galaxy Digital Group stated that Ethereum should treat Bitcoin as a store of value.
Last year, Ethereum co-founder Joseph Lubin bet $500,000 on the future of Ethereum DApps.
