Ethereum is the AWS of Blockchains – Bobby Ullery @bobbyullery – Medium
Ethereum is the AWS of Blockchains
I hate reading crypto articles that preclude the meat of the story with the entire history of Bitcoin and blockchain only to leave you with the fresh information appended at the end… hmm, kinda like a blockchain no? Let’s just SegWit this one and assume you know enough about blockchain to understand why the technology is significant.
Why has the price of Ether gone up
Response: Investors are speculating that blockchain technology will become ubiquitous — across all industries, in our daily lives and in every nook and cranny of the global economy.
So, if you’re an investor that believes the prevailing theory that this Blockchain thing is BIG, like internet Three.0 BIG, what specifically do you bet on?
Response: Ethereum and specifically it’s crypto-currency Ether (ETH)
This paradigm can be thought of the same way that Amazon Lambda works today — a function that waits in the Amazon cloud and executes it’s logic when called upon.
With Ethereum however, the “cloud” is decentralized – there is no Amazon like entity that possesses the network or infrastructure. It’s made up of knots that can be wielded and operated by anyone using the laptops, Raspberry Pis and desktops we already have.
In the near future our phones will also join in — before long, we’ll be witness to a decentralized network that’s global in scope with billions of knots working together — the world computer.
Simply, that’s what Internet Three.0 is. That’s why so many geeks are screaming “THIS IS GOING TO BE Thicker THAN THE INTERNET”. Because it literally and figuratively could be.
Ethereum is the AWS of blockchains. Investors are betting on it.
Why do investors believe that Ethereum will come out on top?
Recently a coalition called the Enterprise Ethereum Alliance was created. Founding members include Microsoft, J.P.Morgan, Intel, BP and others who have essentially put a stake in the ground, confirmed that blockchain is for real, and that Ethereum (not Bitcoin) is the blockchain technology that will bring these fresh use cases to fruition.
Blockchain is here, it’s here in a big way, and it’s here to stay. Investors are betting on it.
If Blockchains permeate our world as widely theorized, and Ethereum is THE network of enterprise blockchains, then having access to the network resources will be significant. Much like how AWS charges by the resource hour or utilization, Ethereum runs on “gas” which is a transaction fee paid in Ether as an incentive for the nodes’ participation (Proof-of-Work today, Proof-of-Stake in the Metropolis release). Simply, to run a dapp or release a coin on Ethereum, you’ll need Ether.
For all intents and purposes once Ethereum’s Casper / Proof-of-Stake is implemented, ETH monetary inflation rate will be close to zero ongoing as policy.
“Either no inflation, low inflation, or low inflation plus some fees paid in eth that are demolished (so the net is slightly deflationary if many people use the system, slightly inflationary otherwise).” — Vitalik Buterin on the monetary inflation policy of Ether
So, let me get this straight — we have the potential for a global ubiquitous, decentralized network consisting of billions of knots, running blockchain powered dapps that are mission critical for the world’s corporations and governments, which require ETH, a potentially deflationary currency, to run? Wouldn’t this make Ether exceptionally valuable in this fresh world?