Viewpoint | Why is Ethereum a true representative of open finance?

In the traditional financial world, the most important is trust and centralized governance. When the idea of ​​a cryptocurrency like Bitcoin was proposed, it tried to provide an alternative form of finance, a form of finance that does not require trust and is completely code-dependent. Although the crypto world also has flaws, it still represents a decentralized and trustless system compared to the type of currency provided by the country.

In the latest issue of the Epicenter podcast, Ryan Sean Adams, the founder of Mythos Capital, highlighted why cryptocurrencies are a digital alternative to central bank fiat currencies such as the US dollar, and detailed the role of Ethereum in such an ecosystem. Adams said:

"I do think that the world has developed a digital alternative, because we have previously had physical currencies that replace fiat currencies with gold and commodity assets, but cryptocurrencies have given us a digital alternative for the first time, Can replace the digital dollar backed by the central bank. "

According to Adams, as more and more users switch to this new form of currency, it will inevitably become increasingly popular. Adams continued:

"Funds and capital will flow from this old traditional world to this new world. This may take decades, or it may take several generations. But you know, future generations will have an alternative tradition The choice of the system, I hope it can restore more balance. "

Over the years, as Bitcoin has been positioned as a digital asset that will make fiat currency obsolete, the scalability issue of Bitcoin has become an obstacle to debate. But according to Adams, the Ethereum ecosystem and its native token ETH are very promising in this regard. He said:

"Want to have a bankless financial system (bankless financial system), and a bankless value storage means at the base layer. I think that ETH as the value store in Ethereum may be the most important currency in the entire stack. (money lego). "

In addition, in a recent Adams blog, he elaborated on the growing role of Ethereum in the stablecoin ecosystem and emphasized that Ethereum occupies more than 75% of the entire stablecoin market. He wrote:

"Not only are other Ethereum's stablecoins growing, but USDT itself has also migrated most of its stablecoins to the Ethereum network. Today, Ethereum occupies more than 75% of the entire crypto stablecoin market."

The following chart shows the market value change trend of USDT (dark green line) issued based on Bitcoin and USDT (light green line) issued based on Ethereum over the past year. It can be seen that the latter shows a trend of overtaking and increasing: 1

Why do issuers such as USDT and USDC stablecoins choose to issue their stablecoins on Ethereum instead of Bitcoin? According to Adams,

"Because stablecoins are more useful on the Ethereum network than on the Bitcoin network."

Adams explained that the Ethereum network can provide stable currency issuers with programmability, access to the DeFi field, scalability & user experience improvement, and a rich Ethereum ecosystem (Ethereum wallet, developer & exchange ecosystem), etc. Advantage.

Adams added that last year the Bitcoin network was the largest stablecoin settlement network. At that time, the USDT issued based on the Omini protocol completely relied on the Bitcoin network for settlement; and as the USDT moved to the Ethereum network (based on the ERC-20 protocol) At present, the Ethereum network is close to overtaking the Bitcoin network, becoming the largest stablecoin settlement network.

At the end of the article, Adams stated his expectations for the future:

"Leave us ahead is more overtaking: at a certain moment, your cryptocurrency net worth exceeds your traditional net asset value; at a certain moment, your crypto bank is more useful than your traditional bank; at a certain point At the moment, your Ethereum address is more useful than your bank account. "

"We will get there first, because it is us who will open up the territory. Then they will catch up." Reference links: