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Inclusion in China’s BSN, Other Trends Tip Ethereum for Growth

The suggestion in the latest Blockchain Service Network (BSN) whitepaper that Ethereum – as well as EOS – will be included in China’s blockchain platform could be a big win for the top smart contract platform once the Chinese initiative is fully operational.

Led by the State Information Center, BSN launched this week and will be available globally by April 25 to enable plugins by companies and software developers to easily build blockchain-based applications. BSN is expected to take hold in various countries of the world and be “the only global infrastructure network that is innovated by China whose gateway access is controlled by China” according to its latest white paper. It also shows that the centralized platform will help developers choose from several enterprise blockchain protocols or public chains to reduce their operational costs, improve flexibility and provide better regulatory oversight.

Ethereum has been on the lookout to be a part of the Chinese blockchain ecosystem for some time. Shortly after the Chinese president spoke about the technology’s potential and how China is working to take advantage of it last October, Ethereum co-founder, Joseph Lubin, indicated their willingness to work with the Chinese government to achieve maximum outcome.

Lubin sought to “help China get expert in Ethereum technology” for fear the Belt and Road Initiative could end up using “one of the weaker technologies” which may not be “as interoperable. ” leaving Ethereum behind as “the strongest of the blockchain technologies”. The time to achieve this working relationship now seems to be close especially with the positive record the network has achieved of late.

Figures show Ethereum’s growth continued in Q1 2020; up 64% year-on-year in terms of daily activity and 371% in terms of USD value, according to Dappradar in its latest industry review. It notes the Ethereum dapp ecosystem experienced growth of 16% in terms of combined daily active unique wallets across all dapps during Q1 2020 to end March with 17,489 active wallets. Ethereum also accounted for 81% of the total value of the $6.7 bln that reportedly interacted with all smart contracts across all blockchains during Q1 2020.

This is basically because Q1 2020 was stablecoins’ best quarter ever, claims Ryan Watkins, a Researcher at Messari who cites their use as a global flight to safety amidst the coronavirus pandemic to see over $8 bln stablecoin issued in Q1 – an addition of as much market cap as they did in all of 2019.

“Ethereum is becoming the dominant value transfer layer in crypto,” Watkins tweets, noting that stablecoins now account for 80% of daily transfer value on Ethereum which are used for significantly larger transfers on average than Bitcoin. He adds that stablecoins have better product market fit for transferring value between exchanges, as one of today’s dominant use cases, and “Ethereum is by far the leading platform for stablecoin issuance, and will likely extend its lead due to its maturity and lively project ecosystem.”

He states in another tweet: “Ethereum is a Wall Street in the cloud. Stablecoin issuers are following the money. Stablecoins are on pace to quadruple their growth in 2019, which could bring a flood of new liquidity to Ethereum’s ecosystem and further solidify its position as the dominant stablecoin platform.”

It is worth noting that the forward-looking outlook for Ethereum is coming as the Ethereum 2.0 mainnet is released amidst indication that the network has now transferred value in parity with Bitcoin. Called ‘The Topaz Testnet’ and with a genesis time of April 18 at 00:00:00 UTC, it will see participating validators make a ETH 30 deposit on the Goerli ETH1 testnet to support the network’s stability.

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