Indodax: Ethereum Able To Facilitate New Innovations In The World

Illustration (Photo: Doc Antara)

JAKARTA - Indodax Chief Technology Officer (CTO) William Susanto stated that Ethereum (ETH) is able to facilitate new innovations in the financial world such as Decentralized Finance (DeFi) which changes the way to carry out saving and lending transparently without interference from any organization.

Ethereum, as one of the largest blockchain platforms in the world, has undergone significant changes after the latest upgrade. This upgrade reflects Ethereum's commitment to continuing to innovate and address challenges in the dynamic blockchain and cryptocurrency landscape," he said.

According to data from CoinTelegraph, Ethereum's Layer-2 network reduces transaction costs by 15 times compared to Ethereum's Layer-1, which means it becomes more efficient to use in DeFi, non-fungible token (NFT) applications, and blockchain games (video games that include block chain technology elements with cryptographic bases).

Based on a report from ConsenSys, Ethereum shows developments in blockchain technology adoption in various sectors.

One of the main examples is the launch of the Layer-2 network which serves as a scaling solution for Ethereum.

The use of Layer-2 as a solution plays an important role in the evolution of Ethereum which is designed to increase transaction speed and efficiency on blockchain, so that it is increasingly adopted by users and developers.

For example, he continued, DeFi at Ethereum created a decentralized financial system by replacing or completing traditional financial services such as loans, insurance, trade, and deposits using blockchain technology and smart contracts (a computer protocol that facilitates contracts or agreements between one party and another without going through third parties).

In addition, Ethereum is also known to have the ability to support smart contracts and decentralized applications (DApps). This is what distinguishes Ethereum from other blockchains like Bitcoin because it focuses more on digital currency transactions.

"One of the variants of ETH is the focus on DApps, the meaning of DApss itself is being crushed together to continue to be developed, while the network is fast and cheap," said Web3 Community Founder Parallaz Mario.

Furthermore, the decentralization nature of Ethereum is considered to make the construction of applications in digital currency unlimited.

This means that developers can take advantage of Web3 technology to target global markets that have greater potential.

Ethereum's Exchange-Trad Fund (ETF) is expected to increase thanks to the ongoing push for new liquidity, especially from the United States market. This will facilitate access to Ethereum and support price stability which is good news for investors and development in Indonesia.