How the fast-rising Ethereum is trying to take over the oldest cryptocurrency

Tuesday, 12 April 2022 (1 month ago) 16 views
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A teenager who was introduced to cryptocurrency by his father in 2011 realized that restricting the blockchain to financial transactions was Bitcoin’s downside and went on to conceive of a new platform called Ethereum in 2014.

bitcoin Not only is it the most famous cryptocurrency, it is also the oldest. Six years ago, Bitcoin dominated the crypto market with an 81% share, but it has now dropped to 41%.Bitcoin at $803 Billion Remains Most Valuable Coin, Followed by Fast Rising Coins ether — the currency of Ethereum Platforms – worth $389 billion. What’s driving the popularity of Ether? Where will it go?

Bitcoin may be synonymous with cryptocurrency because it was designed as a standalone virtual currency that also acts as a hedge against inflation. To facilitate Bitcoin transactions, blockchain — Distributed Ledger Technology — Developed in 2008 by its anonymous creator.

A teenager who was introduced to cryptocurrency by his father in 2011 realized that restricting the blockchain to financial transactions was Bitcoin’s downside and went on to conceive of a new platform called Ethereum in 2014.

Computer programmer Vitalik Buterin envisioned ethereum, which leverages the blockchain to build applications that enable secure property transactions or timely royalties to artists.

Leverage blockchain
Bitcoin and Ethereum are both
decentralization, meaning they are not issued or regulated by a central bank or other authority. Unlike Bitcoin, however, Ethereum is helping cryptocurrencies surpass money.

For example, using some code on Ethereum, farmers could be paid for crop insurance based on drought data, and even a royalty would be offered to artists every time their work was sold.

Ethereum has its own built-in currency, Ether, which also helps to execute programmable operations and smart contract commands on the Ethereum blockchain. Self-executing contracts that are written in lines of code and live in the blockchain are called smart contracts.

Vijay Pravin Maharajan, founder and CEO of Chennai- and Munich-based blockchain BitsCrunch, said: “While Bitcoin was envisioned as the currency for a truly decentralized online financial market, Ethereum was launched to build on blockchain Extend its applications on-chain.” Analysis Launch.

Ethereum’s focus is on extending the single use of blockchain technology, not Bitcoin, which was developed as an alternative asset and virtual currency with no backing or intrinsic value and no centralized issuer or controller.

Ethereum is also designed to support non-fungible tokens (NFTs) and decentralized finance (DeFi). NFTs are often used to provide ownership for digital art, while DeFi refers to peer-to-peer financial services, not the products of banks or other regulated entities.

It is also Ethereum that enables “trustless” blockchain transactions for government-backed (fiat) currencies. In a decentralized setting, people need to trust the system and not others.

Gavin Wood, one of Ethereum’s co-founders, once said, “Ethereum commodifies trust; it’s a zero-trust computing platform.” This means that the platform trusts no one and everything needs to be verified.

What are the disadvantages
Industry experts believe that a blockchain system should have three basic properties: decentralization, security, and scalability. Ethereum is decentralized and secure. However, scalability is a key flaw.

Buterin pointed out this problem in the white paper. “Like bitcoin, ethereum suffers from the flaw that every transaction needs to be processed by every node in the network,” the white paper said.

This is a very inefficient system that can challenge businesses or projects that rely on blockchain, Maharajan said. However, he added that blockchain is an evolving technology and developers are working hard to improve it.

What should investors do
According to industry insiders, ether was never meant to compete with bitcoin. However, it is gaining popularity due to its use in various decentralized applications. “Ethereum should soon overtake Bitcoin based on its flexibility and versatility alone,” Maharajan said.

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