What is Ethereum BlockChain

Another thing quite similar has been happening in the Blockchain environment. Numerous parallels might be pulled. In today’s ICO frame-work, founders typically follow the model set by Ethereum: the project’s ideas is described in a white paper that explains how the modern system protocol will run and precisely how the under-lying enterprise is, eventually, organized. The majority of ICOs these days only embrace BTC or ETH, so outside investors, need to convert their Fiats to one or  both of these cryptos, therefore improving the demand from customers and, consequently, their prices. In a way, you can nowadays see Bitcoin or Ethereum as the entrance gate to the rest of the crypto community. Ethereum’s price doesn’t depend on its higher demand only, but also on a general-purpose computing system, as a number of new tokens are created on top of the Ethereum blockchain, improving its swarm and therefore the value of ETH.

The result of that cycle is a powerful feedback loop. Most of the companies issuing tokens emphasise the success of ETH as evidence that token presales are a good investment and like Yahoo, as an example in the late 90’s, ICO activity boosts demand for ether (and Bitcoin), creating an even greater sense of momentum in the blockchain world as a whole. This feedback loop is, likely, one of the reasons why the price of Bitcoins and Ether soared over the last year. However, we don’t see this role of the feedback loop as playing a purely negative role. Exuberance and abuses will bring with them scrutiny and regulations. The future for ICOs and the token market is bright, but undoubtedly more regulated. The market maturing, more “off-chain” rules will mutate and adapt to try to mitigate and regulate the coin markets. This will happen more quickly than most people think, authorities having at the same time the responsibility to legislate and the financial obligation to engage in this new lucrative market. However, in order to maintain the ethos of free spirit and remain a self-regulated market several associations in the world, such as Crypto valley in Switzerland JBA in Japan, have committed to leading the way.