Why does the ICO use Ethereum (why does Ethereum not set a ceiling)

Why do icos use Ethereum ICO is the hottest topic in the blockchain industry. It is considered to be one of the largest projects on the Ethereum public chain. Why do ICOs use Ethereum During the 2017 ICO craze, many companies and funds raised funds by issuing tokens (which raised over $4 million at the time) and then used these funds for charitable purposes. However, as the ICO market gradually weakens, many projects are turning to investing in ICO Although some ICO projects have already chosen investment banks for ICO, the initial financing costs for most projects are not that high, and no one is even willing to provide any funding for their projects. Therefore, for many participants, ICO is more like a game. So we can discover from this process: why are so many institutions or organizations so interested in ICO Firstly, they are usually based on the business models of traditional banks or large financial companies, rather than being completed by a single technician. For example, a global enterprise called Fidelity will connect customers with other buyers to establish partnerships, and then bring them to another company to manage the entire process; Secondly, these companies may use third-party hosting services for ICO, as they do not charge commissions; Thirdly, the founders of these companies often hope that their teams can develop a new product Another thing is that most of them are considering launching their own digital currencies. And they also love this new payment method very much. And now they seem to be exploring how to create more digital assets in the future. Therefore, it is clear that ICO is actually trying to solve this problem using existing technology

Why does Ethereum not set an upper limit

Editor’s note: This article is from BlockBeats (ID: BlockBeats), which is reproduced by the Odaily Planet Daily with authorization

Why doesn’t Ethereum set a ceiling? There are two reasons:

1. Due to the high transaction fees of the Ethernet network, users cannot use smart contracts to collect these fees 2. Due to the restrictive conditions set in the agreement, the ETH price fluctuates sharply, making it impossible to clear and settle through collateral So if there is no such mechanism design, the reason for the drop in ETH prices is that there is currently a view in the market that ETH will rise to $100. So what is its next goal? Why does Ethereum not set limits? The answer is simple: 1. The price of ETH cannot be forcibly raised to the market price of one ETH

2. “Locked” assets must exceed 50% of the total supply in order to be unlocked

3. To prevent “lockedin” or “destruction”, so that any funds on the Ethereum network can gain more benefits from the agreement

4. The Ethereum blockchain is designed to ensure the improvement of security, privacy and scalability of all participants. This means that only those who have 32 ETHs and hold at least 32 ETHs can use ETH for other purposes, such as paying interest and storing value, without having to pay for each address, otherwise they will lose their own tokens or currency; In addition, when people purchase a certain ERC20 token, the issuer of ETH should also know whether they need to pay a certain cost to the owner of ETH

It is mentioned here that EIP-1559 is one of the Ethereum community governance programs, which aims to achieve decentralized autonomy, that is, anyone can decide whether to change the proposal and implement the revised proposal through their voting system. But specifically, EIP-1559 did not consider the control of the Ethereum chain itself, but chose to hand it over to the community management committee instead of being managed by the committee. On the contrary, Ben Edgington, the core developer of Ethereum, proposed some ideas, including the plan to use ETH as an exchange medium; Allow the holder to directly invest the assets into various applications of the Ethereum ecosystem; Allow the creation of token based proof of ownership, etc. However, for many non Cryptocurrency projects, this method may not be applicable to Ethereum, and some projects may face stricter security audit standards, such as requiring the Ethereum Foundation to comment on any content in the code, or just make suggestions

On the other hand, EIP-1559 has another advantage, that is, it eliminates the problem of whether Ethereum’s verification nodes need to perform their duties and how to deal with their pledged assets. In fact, EIP-2929 is not for specific Ethereum addresses, but for those problems that want to be solved with Eth2.0, and has been widely accepted as a solution It is worth noting that,