What is Ethereum Matrix (Ethereum Function)

Ethereum Matrix is a common structure of blockchain that takes into account various factors in its design. For example, due to the large block size, it was unable to ensure fast transaction confirmation speed, high gas costs, and low data processing efficiency, which led to the issue of a large number of miners and users leaving the Bitcoin blockchain.

Therefore, in order to make Ethereum run more robustly and efficiently and reduce dependence on network participants (if necessary), the development team using Matrix technology took Etherscan as the main reference. Scalability is achieved through off-chain analysis, enabling Ethereum nodes to perform the consensus process more quickly.

Ethereum Function

Ethereum is one of the most active networks in blockchain technology, and it has made significant progress in 2020. Currently, the network is running over 100,000 smart contract platforms, nearly 20 billion transactions, and billions of dollars in assets. In addition, the total locked value of decentralized applications (DApps) on the Ethereum network is close to 2 billion US dollars, an increase of 275% since 2018.

According to DeFiPulse data, in the third quarter of 2019, stablecoins based on the ERC-20 standard accounted for about 70% of the total market value of all cryptocurrencies. Since the beginning of 2021, this digital trend has been exponentially increasing, and as of the time of writing, this proportion has soared to 65%.

Although Ethereum’s ecosystem has a strong relationship with Bitcoin, its impact on DeFi far exceeds Bitcoin. As the price of Bitcoin rises, token prices in the DeFi sector also continue to rise. For most of 2020, the token prices of DeFi projects were falling or even plummeting. However, Ethereum is gradually changing this situation.

Ethereum is a decentralized protocol and infrastructure service provider that uses a proof-of-stake consensus algorithm to ensure trustlessness and provide scalability for various types of applications. Its operation is similar to that of computers on the internet. By creating a peer-to-peer payment network or blockchain wallet, users can send tokens to others and conduct transactions within it. When you transfer ETH to another chain, it becomes your Ethereum wallet, increasing the number of ETH holders. If you don’t believe in the existence of these tokens, you are likely to lose some value. But once transferred to an exchange and the conversion is completed, you will see more funds flowing into the Ethereum ecosystem. Therefore, if we choose to continue doing this, there shouldn’t be a big problem because Ethereum, as an important part of the global financial system, has many use cases like this.

For example, Ethereum 2.0 will be released in the coming months. This version will support multiple different shards. Although the project has not yet announced a release date, it is expected to go live on the mainnet in 2022. At that time, users will be able to build applications directly on it.