In a report released Tuesday by Bank of America, Ethereum He noted that blockchain remains the leading operating system for decentralized finance (DeFi). According to the bank, an alternative solution to the blockchain was not available until recently.
However, according to the report, he stated that he expects the adoption of the network to decrease if the efficiency in the blockchain does not increase. According to the bank, new applications that developers will build are likely to shift to different solutions over time.
Analysts Alkesh Shah and Andrew Moss shared their expert opinions on the subject, commenting that “We think Ethereum’s long-term viability depends on its ability to fulfill the vision set out in the roadmap, which includes implementing the sharding architecture to significantly increase its throughput capacity.”
Bank of AmericaHe noted that Ethereum’s smart contract-enabled platform provides a first-mover advantage as app developers turn to the platform, leading to network effects as the number of decentralized applications (dApps) and users grows.
However, this early success proved to be a “double-edged sword” as large numbers of transactions caused network congestion and increased transaction fees.
A dApp can be defined as an application that uses blockchain technology to keep users’ data out of the hands of the organizations behind it. Smart contracts are computerized blockchain protocols that fulfill the terms of a contract.
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