Analysts stated, “Web3 is unalterable individual possession of information, data, and resources, facilitated by trustworthiness becoming a computational primitive integrated into networks utilizing blockchain technology.”
Graham and Vafi centered their attention on Ethereum, the second-largest crypto by market value and pioneer in the non-fungible token (NFT) sector.
“Ethereum has positioned itself as the premier blockchain network supporting this confidence… the wider internet will likely compensate Ethereum generously for this function.”
After mainframes (1957 to 1964), desktop computers (1975 to 1984), the world wide web (1989 to 1993), Bitcoin (BTC) and Ethereum (ETH), experts say blockchain represents the fifth wave of computing (2009 to 2015).
Smart contracts, a notion coined by computer scientist Nick Szabo in 1994, are referred to as the blockchain’s basic components.
Analysts stated, “Ethereum is the pioneer and scaled leader in the area of smart contract blockchains.”
The analysis challenged the notion that Web3 had “reached critical threshold.”
As per Graham and Vafi, “Ethereum is expected to keep maturing into a basic technology driving this revolution,” and ETH tokens have a high potential for experiencing enormous value.
Ethereum’s major growth sectors include improving the internet, DeFi, DAOS, NFTs, and the Metaverse.
A substantial portion of the research focuses on non-fungible tokens, whose popularity has increased during the past two years and whose market is presently controlled by Ethereum, as a detailed study illustrates:
Although Axie Infinity, which utilizes the Ronin Network, has the highest NFT sales volume of all period at $4.25 billion, Ethereum ventures rank second, third, fourth, sixth, and seventh depending on sales volume.
Ethereum NFTs are also one of the top NFTs in terms of market capitalization, with CryptoPunks having the highest value at $2.25 billion, or 10% of the total market size.
The other leading ETH-powered NFTs by market cap are the following:
In line with the statement, the Ethereum Merge that will occur between September 10 and September 15 is anticipated to make the crypto “more efficient and widely accessible.” The implementation of smart contracts may facilitate microtransactions and new regions in an intelligent and effective manner, according to experts.
“A smart contract can do whatever a computer can accomplish, from powering an ordinary gaming application to producing and tokenizing stocks, bonds, as well as other real-world assets, establishing complicated banks or casinos, based on your point of view.”
The paper compared this to Amazon.com Inc’s Amazon Web Services cloud service offering (AWS).
“AWS offers processing power, typically in microquantities, to various sorts of end-user applications. AWS thrives regardless of the source of need for cloud computing: streaming video or AI-powered corporate applications.”
Graham and Vafi did not provide a price estimate for Ethereum, but they did utilize other models to assess possible values, such as a discounted cash flow model (frequently utilized for evaluating public companies) that values ETH at $11,953.