Ethereum's progress and challenges, future price optimism

Today, I would like to talk to you about some recent situations in the industry.

A reader mentioned in a message that something seemed to happen between the AC department's insurance project COVER and AC, which caused COVER to no longer be integrated. Because I also hold COVER, I carefully checked the relevant news.

This news comes from AC’s twitter. The original text of the twitter probably means that the two protocols are now operating independently. The main reason is that AC believes that the COVER team he once respected and trusted is no longer worthy of his trust, and Take this incident as a lesson.

Whether a project can have long-term development is the most fundamental thing is the team, and the most fundamental thing of the team is the character. If there is a problem with the character of the team, there will be a problem with the development of the project.

Although it is difficult for outsiders to know what is the inside story of the matter, and this is also AC's one-sided statement, but judging from AC's past work style and remarks, I am afraid that his words are relatively reliable.

So I threw away part of the cover myself, leaving a part to continue to observe.

Under the circumstances that there is no obvious leader in the insurance department so far, such an incident of COVER is a relatively big blow to the project itself, but it may be a good thing for the entire ecology, because it gives new opportunities to latecomers.

Recently, there have been many articles in the media discussing Ethereum’s EIP-1559 solution, and many of our readers have paid attention to it.

Simply put, this plan is directly beneficial to the entire community on the surface, but not to the miners.

EIP-1559 is to change the fee structure of Ethereum. Now all the handling fees are owned by the miners, but after the implementation of EIP-1559, the handling fees will be divided into two parts: the basic fee and the tip. Whichever transaction gives the most tips, miners may prioritize which transaction to pack. But when the miner packs that transaction, it can only get the tip, and the basic fee will be burned.

Therefore, every transaction will burn a part of Ethereum, which is likely to lead to the deflation of Ethereum and benefit all holders of Ethereum; If you get some, the benefits are obviously lost, so the miners will complain in their hearts. Recently, some mining pools have publicly expressed their opposition to this improvement plan, and this is the reason.

In fact, in the long run, for miners, the deflation of Ethereum is also good, but the long-term good and the reduction in income on the books seem to have a greater impact. Whether the interests of miners will be damaged or benefited is still unclear. can not tell.

I am more optimistic that this agreement will eventually pass, because it benefits the entire community and all Ethereum holders.

Once EIP-1559 is implemented and Ethereum experiences deflation, its total circulation may remain between 110 million and 120 million, which is five to six times the total amount of Bitcoin.

On the other hand, the second-layer expansion of Ethereum is also in full swing, and this year there will be a large number of leading projects launching second-layer expansion solutions. For example, Uniswap V3, which may be launched in the near future, some people speculate that it may include the second-layer expansion function. I believe that once the second-layer expansion is widely implemented, a large number of transactions on Ethereum will be migrated to the second layer, then the rise in the price of Ethereum will no longer be a factor restricting the development of the entire ecology, but will become the cornerstone of maintaining the security of Ethereum ,Therefore, the rise in currency prices is more positive than negative for the entire ecology.

Therefore, looking at the development and implementation of EIP-1559 and the second-layer extension comprehensively, I think that driven by these two factors, the future price of Ethereum is very optimistic.