How Ethereum is Driving Home Blockchain-Based Decentralization Features

The Ethereum blockchain code was designed as an open-source system, allowing other programmers to design smart contracts that can address real-world problems using blockchain technology. Till the last quarter of 2020, the Ethereum blockchain has hosted as much as 1.5 million smart contracts according to a research study by Giuseppe Antonio et al.

Blockchain technology by definition aims to propound its decentralized framework, helping innovators to provide custom made solutions to re-engineer finance, digital identity, and other aspects in which technology helps promote human engagement. The Ethereum blockchain has proven to be the most functional and go-to blockchain systems around today championing this revolutionary drive.

Ethereum and its Unique Decentralization Offerings

Ethereum was the basis for which the growing blockchain niche dubbed decentralized finance (DeFi) was pioneered. Through its provisions, blockchain innovations offering alternative financial products with more flexibility began to permeate the blockchain ecosystem.

For the first time in decades, there are DeFi projects built on Ethereum that offer hassle-free loan products, provide a financial tool through which anyone in any part of the world can provide liquidity to power the loan services, and get a worthy return on their provisions. This is a complete U-turn from what traditional financial institutions offer, in which a centralized firm takes all the risk, and shares all the profit from lending transactions.

The relevance of Ethereum as a pioneer of decentralized service offerings is transcending just DeFi, and there is now a growing rediscovery of Non-Fungible Tokens (NFTs), in which digital artists can register their creations on the blockchain, to prove authenticity and ownership and thus, be able to claim adequate reward for the ingenuity.

Ethereum’s role in providing decentralized technology advancement is not without its costs however, the network is overcrowded, resulting in high network fees that sometimes makes using the DeFi or NFT-based services unattractive. However, the Ethereum developers are unrelenting in reinventing their model and are rolling out Ethereum 2.0, a Proof-of-Stake (PoS) model that will solve the scalability and ultimately the skyrocketing network fee problem. Should this happen, the world may yet welcome more innovative blockchain-inspired decentralized products and service through Ethereum in the near future.

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