Ethereum is on its way to becoming a full proof-of-stake (POS) blockchain as part of the Merge upgrade. This move will make Ethereum:
99% more energy efficient
Expected to massively reduce gas fees
Expected to massively ncrease transaction times
Expected to increase the scalability of the applications running on the network
Besides the Merge, which is expected mid-2022, the blockchain is also introducing sharding where activity will be distributed, all calculated to increase efficiency for users and developers on Ethereum.
2. First Mover Advantage
Ethereum holds a sacred place in Web3 history. It is the blockchain that introduced the idea of using blockchains not just as a system for a currency (bitcoin), but as a system for decentralized applications (dApps) that could be applied for solutions in finance and other areas.
Being the first blockchain to efficiently deploy smart contracts, and subsequently, the running of dApps, means the support and community around Ethereum is huge.
One way this advantage plays out is that if developers have questions, somebody else probably had the same question in the last 5 and a half years, meaning the answers are likely to be available – a factor incredibly important in any disruptive tech sector.
3. Blockchain of Choice for Stablecoins
Stablecoins are key to enable transactions in DeFi as they let users switch value across different currencies and blockchains without the risk of volatility.
Ethereum’s flexible digital contract functionality lends itself extremely well to the issuance of stablecoins. The two stablecoins with the highest significance are Tether ($USDT) and $USDC – both based on Ethereum.
The 3 reasons covered in this blog are integral reasons why developers should still consider building on Ethereum besides the its current scalability concerns. In any case, the first reason, upgrade 2.0, alone is hoped by many to finally put to bed the scalability issues.