- Chain development kits open doors for innovative Ethereum application.
- Deflationary ETH: Post-Merge burning mechanism and potential ETF approval could boost Ether’s value.
- Layer-2 boom: EIP-4844 upgrade promises cheaper transactions, fueling explosive growth in L2 solutions.
Ethereum’s 2024 is shaping up to be a landmark year, fueled by expanding developer tools, potential regulatory tailwinds, and a key network upgrade.
The potential approval of a US-based Ether (ETH) spot exchange-traded fund (ETF) at a value of $2,921 is on the horizon.
Additionally, the Ethereum network is expected to enter its first bull cycle post the Merge in 2022.
This development renders ETH deflationary during periods of heightened network activity.
The post-Merge bull cycle sees ETH turning deflationary amid periods of heightened network activity.
Furthermore the EIP-4844 upgrade aims at making layer-2 scaling solutions ten times cheaper. Layer-2 blockchains built on Ethereum offer faster and cheaper transactions. EIP-4844’s cost reduction potential will supercharge their growth, creating a symbiotic relationship with Ethereum.
Ethereum: More Than Just an Asset
Ethereum is a decentralized blockchain platform that is more than just an asset. It is a shared and programmable database that can be used to develop decentralized applications (DApps).
In order for Ethereum to have value, valuable applications must exist on it.
One of the main challenges to Ethereum adoption is that there are few people who are able to “think in blockchain” and see how it can be used to solve problems.
Additionally, there has not been consistent help available to guide companies that want to experiment with blockchain.
The future of Ethereum
However, the game is changing in 2024. The blockchain ecosystem is going through a period of specialization, with more leadership positions at large companies and people who have a mature mindset about how to build on-chain.
This could lead to the development of more valuable applications on Ethereum, which would increase its value.
Chain Development Kit
CDK enables creation of subchains. Developers can build focused chains for specific industries like gaming, finance, or loyalty programs.
Polygon for example , its Chain Development Kit (CDK) allows developers to build specialized subchains for various use cases.
Polygon introduced new chains like B2 for Bitcoin, OEV for oracle value, Hypr for gaming, Libre for tokenized assets, and FireDrops for FlipKart.
Other major L2 blockchains are similarly adopting this approach, known as “Op-Stack.”
Each L2 blockchain is offering its own development tools, leading to a diverse ecosystem of specialized chains.
This shift towards specialization could pave the way for widespread blockchain adoption in 2024.
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