Three reasons why Ethereum will crush Wall Street in the next 5 to 10 years

Aaron Wright, a professor at Cardozo Law School, believes that Ethereum could crush Wall Street within the next 10 years. The professor outlined three key reasons why Ethereum can compete with traditional finance, namely decentralized autonomous organizations (DAOs), non-fungible tokens (NFTs), and personal tokens.

Decentralized finance (DeFi) has taken the Ethereum and cryptocurrency space by storm. At present, the value locked in various DeFi protocols has exceeded 14.9 billion US dollars, and the cumulative market value of DeFi tokens has reached 18.8 billion US dollars.

However, Ethereum is much more than DeFi. Wright explained that DAOs, non-fungible tokens, and individual tokens could massively expand Ethereum’s usability."DeFi is not competing with Wall Street, but Ethereum will crush Wall Street in the next five to ten years. Decentralized autonomous organizations will replace Silicon Valley; non-fungible tokens will replace art and gaming markets; and social networks, media, and influencer networks will be replaced by personal tokens. Decentralized Autonomous Organizations, in particular, are likely to be the focus of Ethereum's next growth phase, as it can be adapted in a number of ways. "

Conceptually, a DAO is an organization that operates in a decentralized manner. Members of the DAO make decisions through voting, and the organization is jointly managed by community members. A DAO can be a foundation, a project or a community. Typically, DAOs have an underlying token known as a governance token. With it, organization members can vote to approve proposals.

As an example, DAOs can be used for venture capital funds. In a DAO-based fund, the holders of the governance token can determine the operation of the fund. If these decentralized governance systems are applied in both financial and non-financial domains, the usability and adoption of Ethereum can be greatly improved.

In the past, Ethereum has seen massive increases in user activity for DeFi, DAOs, and other decentralized applications, where scaling issues have often become a roadblock. But with the release of the Eth2 mainnet, the Ethereum blockchain network will be able to process thousands of transactions per second. On-chain activity shows that the demand for staking Ether will only increase, which will make Eth2 more stable.

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