Home Altcoins News Ethereum (ETH) is the Long-Awaited Banking Industry Disruptor

Ethereum (ETH) is the Long-Awaited Banking Industry Disruptor

Ethereum ETH

The traditional finance system has evolved over the last few centuries to become the global behemoth that it is today. However, it is still relatively slow and is responsible for some of the biggest economic crashes. Those inefficiencies inspired the development of cryptocurrencies. Fast forward to today and Ethereum has developed into the most viable candidate for the future of banking, and one of the biggest threats to the traditional banking system.

One can argue that banks have lived long enough to become the villain. They enjoy all the profits when things are going well but the people suffer losses when things start going sideways with banks barely feeling the pinch. Other major off-putting issues about the banking industry, such as expensive transactions, especially when dealing with cross-border remittance and transaction checkouts on e-commerce platforms. Banks also have centralized control over money and there are too many hoops for their customers to jump through. This is where Ethereum is currently winning the battle.

Ethereum’s network of value

Ethereum is currently the most popular blockchain judging by the many projects built on top of it. What makes it interesting is that it is not as centralized as the banking system and it seems to benefit all participants. Users can create accounts and hold a variety of cryptocurrencies which they can easily move across blockchain networks.

Interestingly, even major investment banks are looking into how they can benefit from Ethereum’s impressive offerings. Goldman Sachs, one of the largest Wall Street banks recently started offering ETH options and Futures for its customers. Goldman Sachs recently traded a tokenized U.S treasury bond in exchange for JP Morgan’s JPMCoin, although the Onyx blockchain platform is built on Ethereum. The involvement of the above major banks within the Ethereum network is a sign that not even the banking industry can resist the value that such a blockchain can deliver.

Ethereum might become the first network to attract institutional staking from the banking sector. Some banks such as Sygnum, a Switzerland-based bank are reportedly planning to stake on Ethereum on behalf of their customers as soon as it transitions to Proof of Stake, in an attempt to remain attractive to its clients.

DeFi is arguably the most disruptive aspect of blockchain technology as far as the traditional banking system is concerned. DeFi allows people to take full control of their finances through cryptocurrencies in a completely decentralized manner, which means accounts cannot be frozen and funds cannot be confiscated by governing authorities. It turns out the most popular DeFi platforms such as MakerDao, SushiSwap, Uniswap, AAVE, and Compound are hosted by the Ethereum blockchain.

What does it all mean for the value of Ethereum?

No doubt the Ethereum network is the most preferred blockchain out there and the ongoing developments will undoubtedly make it more of a powerhouse in the future. The network is only getting started, which means it will capture even more value further down the road, which is good news for Ethereum holders.

Ethereum ETH USDT
 Source- Binance

ETH traded at $2,100 at the time of writing, and some analysts believe that it is still heavily discounted compared to its potential value especially once the ongoing upgrades are completed. Ethereum 2.0 will be a huge catalyst for making the network even more attractive than it already is. More capital inflows into the Ethereum ecosystem will propel the value of ETH to new heights, perhaps even closer to $20,000 sometime soon.

The Ethereum network is winning against banks because it is acting as the fat protocol layer on which new and improved financial services are being developed. Its approach allows market participants to benefit, a stark contrast to the current banking system where banks soak up most of the value in the form of high fees.

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Sydney Ifergan

Sydney has 20+ years commercial experience and has spent the last 10 years working in the online marketing arena and was the CMO for a large FX brokerage.

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