Steemit Crypto Academy Contest / S1W1 - Favorite Blockchain Network by @msquaretwins

in hive-108451 •  2 months ago 

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Introduction

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Hello Steemians!
It is another glorious time again on thus platform and I bring greeting to you from the part of the world. I am Kehinde Micheal and my username on this great platform is @msquaretwins. The steemit engagement contest has been going on steadily since Monday here at my ends, and I have managed to post great contents in 5 communities. Not only that, I have engaged on other people content well which has been bringing great interaction among folks from different part of the world.

Today, at the steemit crypto academy I will be discussing about my favorite Blockchain network, its brief background or history, and why it is my favorite blockchain. The earliest shortcoming of the blockchain, and changes that I think will make the blockchain better and a project that is built on this blockchain shall also be discussed.


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• My Favourite Blockchain

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My favourite blockchain is ETHEREUM BLOCKCHAIN

History of Ethereum

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Ethereum is a decentralized and open source blockchain that was developed after the development of the first cryptocurrency, Bitcoin. The blockchain was founded by Vitalik Buterin. Although there are also additional founders which are Charles Hoskinson, Gavin Wood, Joseph Lubin and Anthony Di Iorio but it was the innovative idea of Vitalik Buterin, and he's the brain behind the creation of Ethereum blockchain.

The software used for the creation of this blockchain is EVM 1 Bytecode and was written in Go, Rust, C#, C++, Java, Python programming languages. The official website of the blockchain is https//:ethereum.org.

Vitalik was a co-founders of Bitcoin. But he was of the opinion that Bitcoin could be used to serves other application apart from money. He said that Bitcoin need advance and robust programming language for the development of application.

Ethereum was announced at a Bitcoin conference held at North American in Miami in 2014. During this time Vitalik and the confounders mentioned above met together and discussed the way to develop Ethereum a way to create this blockchain to its full version. The name of the developers foundation of ethereum are Ethereum Foundation, open ethereum, Hyperledger, Nethermind, and EthereumJS. It was released on 30 July 2015 which is about 7 years ago.

Before the launch, ethereum did presale to fund the project. The presale done was 42 day presale and the founders used this avenue to do public presale of ether coin. The reward gotten from the presale was used to settle some debts and to reward developers who have been working for the development of the project and have not gotten paid till then.

After the launch of Ethereum in 2015, the platform gave opportunity opportunity for community members and about 72 million coins were minted. The initial coins that were minted were distributed to the funders of the project. The ethereum blockchain offered opportunity for developers to build their blockchain on the platform.

After the launch of the Ethereum blockchain, miners were allowed to start mining for the security of the blockchain network and in return earned Eth as reward of their work.

The native token of ethereum blockchain is ether which is usually called ETH. It is use for so many things. It is use for gaming, Decentralized Finance, (DeFi) supply chain management advertising and web browsing. It is also used as a means of payment and allows the exchange of value to be possible. The current price of ETH according to coinmarketcap is $2,806. The current market capitalization of ETH is $338,450,369,569 and the circulating supply is 120,578,854.44 ETH.

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• Why Ethereum is my Favourite Blockchain

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There are so many reason why I choose Ethereum as my favourite blockchain. Some of the reasons are listed and discussed below.

Deployment of Decentralized Application: one of the reasons why I love Ethereum blockchain is that it gives developers power to built their DApps on its blockchain. Has it not been because of Ethereum blockchain, some of the wonderful decentralized Application that are useful to us may not have come to the limelight.

Several Means of Exchange: Another reason why I chose Ethereum as my favourite blockchain network is the opportunity of several means of exchange the platform offers. Ethereum playgorm makes it possible for users to do exchanges through ETH cryptocurrency, smart contract and Ethereum Virtual Machine.

Method of Transaction: Method of transaction used in ethereum blockchain also makes it unique among many others. While some other blockchain like bitcoin uses only permissioned means of transaction, Ethereum allows both permissioned and permissionless means of transaction.


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• Earliest Shortcoming of Ethereum Blockchain and Solution

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Like I said earlier ethereum blockchain allows developers to build their decentralized App on the Ethereum network. The launch of this popular blockchain then makes the development of smart contract and many decentralized application possible. But as the decentralized and smart contract that are built on this network increased the transaction time and processing keep reducing such that it took hours to process transaction on Ethereum network. Then noticing this initial shortcoming about the blockchain, many solution were proposed and implemented to solve the issue of low transaction process and scalability.

One of the solution that is done to overcome the earliest problem of Ethereum is the change of consensus mechanism from Proof of Work (PoW) to Proof of Stake (PoS). The proof of work uses mathematical computation and it wastes time, and this account for low transaction speed. Hence Ethereum blockchain claims to solve this issue by changing from PoW to PoS.

Another solution to the earliest problem of Ethereum slow speed of transaction is the creation of sharding. The sharding help to increase efficiency and scalability of Ethereum blockchain. In the formal version of Ethereum blockchain, the verification of all the data added to the blockchain must be done by all the nodes. This however makes the speed to be slow because the verification is dependent on the speed of the mos slowest person that verify te nodes. With the use of the sharding technology, the data verification is broken up among different nodes and this makes each verification to be dependent and make the transaction speed to be fast and scalable.

Another drawback with Ethereum blockchain is high gas fee. It is the fee that makes Ethereum blockchain function because miners that manage the security of the blockchain are rewarded with this fee. So when the demand of ETH goes high, the gas fee increases and vice versa. Then, as ETH get more popularity, the gas fee keep increasing and in fact, a times, the value of gas fee exceed the value of the amount being transacted.

The possible solution that people are saying could lower the gas fee right now is the creation of Ethereum 2.0, and some professionals say that the only thing that can lower Ethereum gas fee is the use of layer 2 application which must be built on ethereum network. Till now, the Ethreum developers have not really told the community the solution to the problem of gas fee.


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• What changes do you think would make the network better?

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The changes that I think will make in my own opinion the Ethereum blockchain network better are listed and briefly discussed below.

• Solution to High Gas Fee: One of the problem that makes people run away from using ethereum is high gas fee. I believe if this issue is tackled, it will make the network better and many more people will be attracted to ethereum blockchain.

Proof of Stake: The developers of ethereum blockchain have proposed the use of Proof of Stake instead of the initial proof of work. I believe using proof of stake will make the ethereum yransaction speed to be faster and hence will make the network to be better.


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• Write about a Project that is built on your favorite Blockchain.

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There are so many projects that are built on Ethereum blockchain, and in fact Ethereum blockchain among others has the highest numbers of projects built on its blockchain. Few of the projects built on Ethereum are,
• Uniswap
• Chainlink
• Curve Finance
• MakerDAO
• Aave
• Sand box
• 1inch
• Decentraland
• Opensea
• Brave etc.

Out of the few project listed above, I will be discussing briefly about Aave

Aave : A project Built on Ethereum Blockchain

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Aave is a decentralized project that was built on ethereum blockchain. It is a crypto assets lending platform that was launched in 2017 by a developer called Stani Kulechov. Aave was initially launched as ETHLend. But in 2020, the project changed to liquidity model and then a change of ETHLend to Aave.

The launching was done through Initial Coin Offering (ICO and over 16 million dollars was made through this presale. Aave is unique among lending platform in that the interest rates is based on the rate at which the liquidity pool is used.

In Aave, the lenders will go and deposit fund which they intend to lends users, and the fund then go to the liquidity pool. Then when the borrowers wish to borrow, the fund is taking from the pool of liquidity. The main purpose of creating this project is to allow users to lend and borrow crypto assets.

The current price of Aave is $156.46. The current Market capitalization of Aave is $2,143,361,803 and the Total Value Locked is $11,922,472,423 with current circulating supply reading 13,699,128.67 AAVE

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Conclusion

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In this post I have written about my favourite blockchain and the reason why I chose it as my favourite blockchain. I have also mentioned some changes that could make the blockchain better. Lastly, I have briefly discussed Aave projext, a project that is built on Ethereum blockchain.

Thank you for reading.

I invite @wentv, @jueco, @ngoenyin, @steemdoctor1, @ijelady, @focusnow to participate in this contest.

Written by @msquaretwins

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It's a nice post you've got here.

The Ethereum Blockchain looks quite interesting. Though, the transaction charges as you've said, is one thing that needs review.

You are right. Thank you for engaging.

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Excellent work done on Ethereum blockchain.

Thank you for reading, friend.