Why is ETH falling recently? (Why does ETH keep falling recently?)

Why is ETH falling recently? Editor’s note: This article is from Ethereum enthusiast (ID: ethfans), author: EvanSkull, translation and proofreading: Min Min and Ajian, authorized reprint by Odaily Planet Daily.

In the Bitcoin network, only one type of transaction is valid: “block”. We use “chain” to record the process of each operation:

If there is a new transaction on a blockchain, this message will be broadcasted to others – that’s why ETH must be processed through consensus.

This means that everyone should participate in the system; and when you put it in your wallet address, you will see the balance in these accounts. If you don’t like to do this, you can try to build your account and smart contract from scratch. So, in order to better understand this point, “chain” is a very important concept. So how to make this relationship closer? First, let’s take a look at how eth’s Proof-of-Work mechanism works:

For those who want to mine and hope to make a profit, Pow is one of the best choices. But on the other hand, if a node does not meet the conditions of excellent performance, computation power, and sufficient computing resources, etc.

Assuming that a client runs two validation programs, they will send a transaction to another client: https://github.com/eosiotechnologies/eosio.js or similar things. As long as you have any questions to ask, and need to provide some information to complete the task. This is a way to implement the most complex workload algorithm.

However, if you want to know which services can be used to ensure the security of data, you should check whether each entity you serve has contributed funds or at least owns a ledger, such as how much dollars your account has earned (about $100,000); that is to say, if a person can control their private key, they can create multiple independent wallets and exchanges. Since there is currently no dedicated network within the entire Ethereum ecosystem for maintaining security, this protocol cannot interact with the Ethereum network, and it also does not support users to pay fees directly with their ETH.

In fact, as time goes by, many projects are seeking more powerful infrastructure to protect the network from attacks. For example, the Ethereum Foundation recently released a new blog post about Prysmatic Labs, stating that the Ethereum Foundation is studying a new proposal to allow more applications to be deployed on the Ethereum mainnet.

Why is ETH falling recently?

Recently, the price of Ethereum has reached new highs, so why does ETH keep falling recently? We can analyze it from two perspectives. The first is to understand it from the perspective of market sentiment: one is that the rise of Bitcoin has been strong; the second reason comes from the price trend of Ethereum and the impact on the Ethereum network itself, because Ethereum has certain advantages as a store of value and medium of exchange; the third point is that due to the unsatisfactory performance of the Ethereum network, the token transaction volume has been decreasing; the fourth factor comes from the fact that the Ethereum community has been very enthusiastic about decentralized exchanges (DEX) as their main business since 2018.