Since the beginning of bitcoin, we have all been expecting a blockchain revolution. However, as the years go by, things have remained stand still. The technology that has promised to change the world has since, always been in a sort of containment. People often question why we have not seen a mainstream adoption of blockchain technology. To answer this question, we must examine the top projects with biggest promises so far. Then we can get to the critical roadblocks of adoption of cryptocurrencies. The three major factors influencing mainstream adoption is scalability, governance and financing.
So, what exactly is mainstream success?
When we say mainstream success, we refer to a Facebook or amazon level of success. In current scenario it means bitcoin or Ethereum are becoming a household name. They should ideally prove as useful and disruptive solutions to general public. Since 2009, we are looking for a blockchain app that sets a benchmark for blockchain projects to come. One of the projects with the highest hype is Ethereum. Also, there are reasons why it has not lived up to the expectations. Ethereum is easily the authentically global, autonomous and decentralized platform that presents an appealing proposition. It has pioneered the industry of decentralized applications (DAPPs), via blockchain technology.
ETH volatility in pricing undermines popularity of DAPPs
Ethereum was the first to provide smart contracts for public usage. Using their platform, anyone can develop applications and smart contracts. The technical and financial strength of Ethereum determines the successes of projects developed on the platform. In reality, Ethereum is more like an operating system rather than a cryptocurrency. It seldom carries a massive appeal as a standalone platform. A classic case of an app extending the awesomeness of Ethereum is Augur. It allowed for decentralized peer to peer prediction markets, through which people can profitably hedge against risks. Nevertheless, Augur was not able to have over 50 daily users or over 150 daily transitions in February 2019. The mainstream failure can be attributed partly to the volatility of eth pricing. Ethereum to fiat leaves room for too much unpredictability.
How Ethereum 2.0 will play out?
Ethereum 2.0 will adopt Proof of Stake (PoS) as its mining model. People can earn by just staking their funds. When such a profit potential opens up, Ethereum will get more and more popular. When the users are incentivized, it is not so hard to bring them in. As a result, the apps operating on top of Ethereum will get more global adoption as well. The sharded architecture will remain almost invisible on the surface. It will add up to its user friendly appeal, considering the average user seldom appreciates the marvel of software development. He/she just wants a seamless interface that connects quickly to all the functionalities on offer.
Like bitcoin, Ethereum is the focal point to global crypto adoption. With the recent developments it looks more promising than ever. The Ethereum 2.0 looks solid on making the long wait worth it. Let us look forward to what 2020/21 holds for cryptocurrencies and their adoption.