Ethereum is a smart contract platform that enables developers to build tokens and decentralized applications (dapps). ETH is the native currency for the Ethereum platform and also works as the transaction fees to miners on the Ethereum network. Ethereum is the pioneer for blockchain based smart contracts.
Against the total of Ether the form of payment used in the operation of the distribution application platform, Ethereum. produced during the same period, this leaves only some 1,072,530 ETH in circulation, i.e. only 34.99% of the overall total that would have been produced had the burning destroying a certain number of digital coins to reduce their issue. This method is used to fight inflation and increase the value of cryptocurrency. All token burning transactions are recorded in the blockchain as a transaction. Therefore, anyone can verify that the coins were destroyed. mechanism not been active on the Ethereum.
Recently released data reveals that, following the implementation of the update that brought with it the EIP-1559 last year, the network a network refers to all nodes in the operation of a blockchain at any given moment in time. of Ethereum a decentralized open-source blockchain with smart contracts functionality. already surpassed the two million mark in the ETH burned / destroyed.
Already more than two million ETH burned
This is revealed by data published by the websiteWatchtheburn.com, which reveals that at the time of publishing, the network has burned a total of 2,002,351 ETH, which is estimated to be worth more than USD $5,849 million at the current exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. rate.
While the rate ofEther burned would be within the estimates originally contemplated by analysts and enthusiasts, what is really interesting is the contrast between the amount of funds burned versus what has been generated during the same period. The network’s data reveals that for this same period a total of 3,074,871 ETH (estimated at more than USD $8,988 million), so a simple subtraction leaves us with about 1.072.530 ETH that would be circulating in the market, i.e. only 34.99% of the respective total.
Let’s keep in mind that the EIP-1559 was originally introduced with the update London as a mechanism to limit the amount of ETH which is normally produced, which brought about a complete change change — a concept relevant to cryptocurrencies that use the UTXO model — is the number of coins sent back to a user after they use their unspent outputs to initiate a transaction. to the way the network had functioned up to now with the introduction of deflationary properties in the reward system. Such a measure was particularly controversial for the community, but in the end it was approved because it was one of the most appropriate measures to ensure the viability of the project in the medium / long a situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later. term.
Other information of interest
Among other interesting data revealed byWatchtheburn is the fact that the service that mostEther has burned is OpenSea, the popular platform a place to buy, sell and store cryptocurrency for the marketing of digital digital technologies are these electronic tools that have the ability to generate, store or even process data. collectibles (NFT), which on average has burned in the last 24 hours some 400 ETH.
In order of daily volume, it is followed by platforms such as Uniswap with 279 ETH (V3 + V2), as well asTether y Stronghold with 107 ETH y 102 ETH respectively.
Overall, it is estimated that the network burned in the past 24 hours a total of 2,787 ETH, which results in about 1.94 ETH destroyed per minute. This figure can increase substantially if the Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. de Ethereum sees higher levels of activity.
The way forward for Ethereum
The aforementioned data gain special relevance in view of the plans for the future of the Blockchain de Ethereum, which is getting closer and closer to the possible transition that would change its operating model fromProof-of-Work poW is a type of consensus algorithm that rewards validators according to the amount of computational power they have expended. (PoW) a Proof-of-Stake poS is a type of consensus algorithm that rewards validators according to the amount of crypto they have staked. (PoS)This would imply a greater scalability, a reduction in transactional costs and a reduction of more than 95% in the electrical consumption of the network.
This will be possible after the arrival of“The Merge”, the phase of the process in which the blocks on the network will be fully processed by the validators who have pledged funds to the associated smart contract. Recently published data reveals that there are already more than 10 million ETH The company’s operations, valued at more than USD $29 billion, are housed there.
Another interesting fact is that once the transition has been made to Ethereum 2.0, the amount of ETH The amount of digital currency currency is a medium of exchange that defines value. that will be issued will be significantly reduced, which could have interesting effects on the supply and demand of digital currency in the main markets.
- Binance Smart Chain proposes to introduce fee-burning mechanism similar to Ethereum
- Ethereum developers successfully achieved ETH2 “Merge” test on Kiln testnet an alternative blockchain used by developers for testing.
- Ethereum 2.0 contract in traditional finance, a contract is a binding agreement between two parties. In cryptocurrencies, smart contracts execute functions on the blockchain. reaches 10 million ETH as tests for ‘The Merge’ launch
Version by Angel Di Matteo / DiarioBitcoin
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