The Industrial and Commercial Bank of China (ICBC), China's largest bank, recently released a report highlighting the potential of Bitcoin (BTC) and Ethereum (ETH). It is worth noting that the report calls Ethereum a “digital oil,” highlighting its role in the digital economy.
This endorsement by this leading financial institution highlights the growing importance of Ethereum and its potential for future technological advancement.
ICBC highlights Ethereum's vital role in digital economy
In a widely circulated report from Matthew Siegel, head of digital assets research at VanEck Asset Management, ICBC recognizes the potential... Digital currencies different. These include BTC, ETH, stablecoins and central bank digital currencies (CBCDs).
Although ICBC notes that Bitcoin maintains a scarcity similar to that of gold, the bank also praises the Ethereum blockchain for its ongoing security upgrades, scalability, and sustainability. These aspects constitute a technical strength for the digital future, say ICBC analysts.
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Additionally, the report highlights Ethereum's unique feature of offering Turing completeness with the Solidity programming language and Ethereum Virtual Machine (EVM). This capability enables complex smart contracts and applications.
is reading The report: “Its flexibility has been widely recognized in the areas of decentralized finance (DeFi) and non-fungible tokens (NFT) and is gradually extending to the physical infrastructure network (DePin). »
However, ICBC points out that this flexibility presents challenges. ICBC claims that security issues arise because Turing completeness allows the execution of arbitrary code, including potentially malicious code. Additionally, complex smart contracts are vulnerable to vulnerabilities, complicating security audits.
Prepare Scalability Another challenge is that the computing requirements of smart contracts can cause network congestion and increase transaction fees. Despite these challenges, ICBC recognizes the efforts of developers who continually strive to achieve technological breakthroughs.
The ICBC report is particularly noteworthy given China's strong stance on Bitcoin and cryptocurrency transactions. Traditional banks generally take a cautious approach to digital assets, making ICBC's perspective even more important.
The bank's view aligns with a recent report from VanEck, which also mentions Ethereum as a "digital oil." They compare Ethereum to “digital oil” because it is consumed during Ethereum network activities. In addition, they consider this asset to be “programmable money” due to its automatic financing and without intermediaries.
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Based on this analysis model, VanEck analysts are optimistic about the future Ethereum currencyThey expect its price to reach $22,000 per token by 2030.
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