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Etheorium, Lindy, Ethereum, and Proof of Stake
The value and security of Ethereum's network are closely tied to the amount of ETH held and its market capitalization. As the price of ETH rises, the cost to perform an attack on the network increases, enhancing overall security. This dynamic is linked to the Lindy effect, which posits that the longer something has existed, the more likely it is to endure. Ethereum benefits from this principle, demonstrating that networks grow in value and reliability over time due to quality and network effects. Furthermore, innovations such as EIP-1559, which alters gas fees and mining processes, could lead to ETH becoming deflationary and solidify its position. Discussions around Proof of Stake and proposals for side chains add complexity to the ecosystem, notably introducing concepts like sharding which aim to improve scalability and interaction within Ethereum’s main framework.