People are wondering if BTC will see a short three-month bull market, but what about Ethereum?

People are wondering if BTC will see a short three-month bull market, but what about @ethereum?

The short answer is probably no, and I’d be happy to be proven incorrect, but I do have a very broad explanation and justification. We’re all aware that the market discounts everything. What are the discounting factors? Let us go into this thread and perform a few graphical analyses to make the idea more apparent and easy to grasp.

Click the link below to view the entire Discord discussion @Quantico_xyz

It’s possible that I overlooked certain Alpha or lessons that are hidden throughout the whole talk we had the previous evening.

https://shorturl.at/7sa5z

The reasons for this perspective can be broken down into several factors:

1. Competing Virtual Machines: Blockchains like @solana and others are gaining traction due to their high throughput and utility, posing a challenge to Ethereum’s dominance. Solana, for example, offers faster transaction speeds and lower fees, attracting developers and users.

2.@monad_xyz ‘s Emergence: Monad is presenting itself as a potential game-changer with its high transaction throughput, full EVM compatibility, and innovative execution mechanisms. With the ability to handle 10,000 transactions per second and low gas fees, it provides a compelling alternative to Ethereum.

3. Market Discounting: The market often prices in upcoming changes and potential challenges. Ethereum’s high fees and scalability issues have been a topic of discussion, and the market may already be factoring in the emergence of more efficient alternatives like@monad_xyz and @solana.

Let’s break down this analysis using the ETH/BTC chart, which helps to eliminate market noise that isn’t relevant to this discussion.

I’ve marked two crucial points on the chart:

Point P1: The day when Monad’s technical whitepaper began gaining attention.

Point P2: The announcement of the Ethereum ETF.

Since Point P1, despite numerous positive developments and the pre-ETF anticipation for Ethereum, it hasn’t outperformed Bitcoin. This suggests that what Monad brings to the table is having a significant impact.

To understand this further, we’ll dive into Monad’s unique selling points (USPs) using insights from its whitepaper and threads by @keoneHD, which will offer a deeper understanding of why Monad is drawing so much attention and how it stands apart in the blockchain space.

Monad’s whitepaper emphasizes several key points listed below.

1. High Transaction Throughput: Monad aims to achieve 10,000 transactions per second (TPS) through extensive optimizations in EVM transaction processing, outperforming current blockchains like Ethereum and Solana​.
2. 2. Parallel Execution (K1): It implements parallel execution in the EVM model, allowing independent transactions to be processed simultaneously. This boosts network efficiency and speeds up transaction processing​.
3. 3. EVM Compatibility: Monad is fully compatible with the Ethereum Virtual Machine (EVM), enabling seamless migration of existing Ethereum dApps without code changes, integrating with current Ethereum tools and libraries​.
4. 4. Deferred Execution(K2): The platform separates transaction execution from the consensus process, allowing nodes to agree on transaction order before executing them. This mechanism enhances network scalability and efficiency.
5. 5. MonadDB (K3): A custom on-chain database, MonadDB uses the Patricia Trie data structure for state storage, supporting parallel execution and reducing the need for expensive hardware like RAM
6. Low Fees and Speed: By using parallel and deferred execution, Monad reduces network congestion, offering faster transactions and lower fees than Ethereum.

These features make Monad a potentially transformative blockchain platform with a focus on scalability, efficiency, and compatibility. The primary points — K1, K2, and K3 — will be covered in detail in the following thread, along with a few tweet references from @keoneHD

Visit the following link to read the complete @monad_xyz Whitepaper. https://docs.monad.xyz

A common concern with optimistic parallel execution is:

“What if transactions have sequential dependencies? Doesn’t this result in serial execution in the worst-case scenario?”

The response is: Yes, it can degrade to serial execution, but only for retries. These retries are significantly less resource-intensive compared to the initial execution cost of transactions, making the overall process more efficient even in scenarios with dependencies.

Visit the following link to read the complete explanation by @keoneHD

Monad is recognized primarily for its Parallel EVM, which aims to process transactions concurrently to enhance throughput. However, the real game-changer for making Parallel EVM truly efficient is MonadDb, the Parallel Access Database. MonadDb allows high-performance state access while minimizing RAM requirements, addressing the key bottleneck: state management.

In traditional EVMs, state access is a major performance bottleneck because each transaction requires reading and writing state data. Without an optimized state access solution, even parallel execution would be limited by the speed at which the state can be accessed and updated, resulting in performance comparable to single-threaded EVMs. MonadDb tackles this challenge by enabling multiple transactions to access state concurrently, significantly reducing the overhead associated with state management.

It achieves this by using an optimized data structure that allows asynchronous input/output operations, minimizing the need for expensive RAM resources. This allows Monad’s Parallel EVM to achieve high throughput without being constrained by the traditional state bottleneck.

Visit the following link to read the complete explanation with a short story by @keoneHD

Ethereum is facing increasing competition, and while some may not go as far as calling Monad an “Ethereum Killer,” It’s clear that Monad offers a unique approach to blockchain performance. By taking EVM to new heights, Monad aims to redefine what’s possible with smart contract execution.

Its innovative Parallel EVM, combined with MonadDb for efficient state access, could set a new standard for throughput and scalability in the EVM ecosystem​ Monad’s potential lies in its ability to overcome the inherent limitations of current EVM implementations. By optimizing state access and enabling true parallel execution, Monad could offer performance improvements that make it stand out in the crowded blockchain space, potentially influencing the future direction of EVM-compatible networks.

If you find this useful, please follow @cryptodurgesh and Medium Page. This journey is here to stay forever.