In July 2016, just four years ago, Nvidia was a $ 26 billion company that made GPUs and graphics cards. In comparison, Intel has long been the market leader with a market capitalization of 166 billion dollars.

The almost 40-year-old chip maker was a Fortune 500 company, and at the time it probably did not care so little competitor.

Nvidia's previous capital costs occurred in October 2007, when it approached $ 22 billion. After the financial crisis in 2008, shares fell more than 80%, and it took nine years to recover.

Ether (ETH) faced a similar battle in 2018 after hitting a market value of $ 138 billion and still has not regained its glorious days.

Ethereum and Nvidia have a lot in common
In addition to a similar market value of Ether's current value of $ 35 billion dollars, according to Messari data, Nvidia trades for $ 10 billion monthly, and trades in 2016, up from Ether's current transparent size of $ 13 billion.

The brand of graphics chips became known worldwide with the launch of Compute Unified Device Architecture, or CUDA, in 2006. CUDA is basically a parallel computing platform and API model.

In the same way, Ether was different from Bitcoin (BTC) in that it created multiple layers in the blockchain and provided additional processing options.

As explained above, CUDA layered architecture from NVidia and Ethereum 2.0 both offer parallel bit processing.

Nvidia has strategically embraced difference and competition
Rather than compete with the power and dominance of Intel processors, Nvidia released a supercomputer in 2016 designed to train deep learning models based on eight modern GPUs using a single Intel Xeon processor. Yes, a competitor is part of the Nvidia product.

Similar to Nvidia's strategy, instead of mimicking leadership qualities, Ethereum takes an approach to exploit the differences. Less than three months ago, Vitalik Buterin proposed a DEX bridging solution to provide easy traffic between Bitcoin and Ethereum.

After removing the basic Ethereum 2.0 solution, you will find that it exaggerates the current differences with bitcoin. Ethereum 2.0 increases the number of independent layers, and reduces the ability of each node to fully test computing power.

The same can be said for the ERC-20 Wrapped Bitcoin (WBTC) code, which is operated by an independent decentralized organization. Meanwhile, solutions powered by the decentralized financial system Ethereum have mimicked the success of the boat and MakerDAO by using a supposed competitor bitcoin.

Ethereum is not only looking for a Bitcoin store, but also for great deals
It seems that the Ethereum team is not interested in competing with bitcoin to become the best store with payment or value solutions.

The forthcoming immigration to prove its interest is further proof that Ethereum uses a strategy similar to that used by Nvidia. According to a study from Cornell University, it is mathematically impossible to define a valid chain without an additional source of trust.

The end of the era of Ethereum mining could indicate a definite gap between bitcoin and the second largest cryptocurrency by market capital. Very different vendors are unlikely to be considered using the same valuation calculations after full conversion of Ethereum 2.0.

Avoiding the listing of utility items involves risk
Almost every option has an opportunity cost, and this is especially true of technology. More powerful embedded processors can easily adapt to the GPU graphics market.

For example, last month Apple announced its own processor, suggesting that it could enter the GPU markets as well.

In addition to increasing competition from other original blockchains such as Tron and EOS, Ethereum faces obstacles in upgrading its core network. Although things are going according to plan in terms of scalability, security and sales incentives, there is no guarantee that decentralized applications, smart contract developers and users will follow these updates.

Given the declining incentives to prove its activity and ultimately suppress it, it will undoubtedly provide fuel to small businesses using compatible mining hardware such as the Ethereum Classic and the Haven Protocol.

Source: CoinTelegraph