Ethereum’s valuation cannot be measured by traditional financial frameworks like discounted cash flow (DCF) or revenue-based models—metrics designed for Web2 companies. Applying such standards risks misclassifying Ethereum as a centralized entity, obscuring its true nature as a decentralized blockchain network. Unlike profit-driven corporations, Ethereum’s value derives from its foundational role in Web3: decentralized security, a uniquely defensible moat built on technology, consensus, and time.
The Incomparable Moats: Web2 vs. Web3
Centralized companies, no matter how dominant, face obsolescence when markets shift—witness Kodak in photography or Nokia in mobile phones. By contrast, Ethereum’s decentralized security model requires immense technical and communal effort to establish, creating a barrier that capital alone cannot breach. Its resilience grows with time; chains with proven reliability (no downtime, rollbacks, or freezes) accrue trust, while centralized alternatives remain vulnerable to disruption or politicization (e.g., SWIFT’s weaponization potential).
Neutrality and Ubiquity: Ethereum’s Endgame
Ethereum is not a business but a neutral infrastructure—a platform for evolving demands, technologies, and markets. Its “boring” yet critical function—like water or electricity—is to provide a secure, decentralized base layer. As institutional adoption grows, chains with the highest security will attract trillions in asset custody. “No enterprise will build financial services on a chain prone to outages,” the argument asserts.
The Future: A Trillion-Dollar Base Layer
Ethereum’s long-term vision is to become humanity’s foundational financial rail: immutable, neutral, and indispensable. Its security-centric design positions it as a new species of asset—one whose value transcends traditional valuation paradigms and could underpin the next era of global finance.
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