Ethereum is second to Bitcoin in the Crypto trade industry. It is mostly known for its smart contracts. Ethereum technology allows developers to streamline the process and build decentralized applications.
Ethereum has introduced new technology to the world and has shown new methods to use the Blockchain technology. One of the popular implementations of Blockchain technology is smart contracts.
If you are venturing into the Crypto market, it is certain that you will come across Ethereum at some point in time. This unique token has changed the Crypto market for good. Even after Bitcoin having the firstborn advantage, you will find that most of the trading happens over the Ethereum network.
Ethereum Might Overtake Bitcoin
Amidst the popularity of Bitcoin, we tend to forget that there are other Cryptocurrencies as well, which are performing in a similar fashion. Just because the market cap of the other Cryptocurrencies is lower than Bitcoin, we overlook them.
Out of all the Altcoins in the market, Ethereum is considered to be a rival for Bitcoin. And there are good reasons for that. Ethereum is the Cryptocurrency that has coined the concept of smart contracts. Smart contracts are the encrypted form of contract where all the conditions are encrypted. Once the conditions are met, the construct executes itself.
The only advantage Bitcoin holds over Ethereum is the massive market capitalization. Other than that, Ethereum is second to none. So, if people start trading more in Ethereum, Bitcoin might lose its first place in the Crypto trade market.
There is no doubt that Bitcoin is soaring high with the recent successful rally. But we cannot omit the fact that Ethereum initiated this rally. Even in 2017, when the first success really happened, Ethereum was the first to initiate the rally.
If we considered these factors, we could not take Ethereum lightly. In fact, we might even see Ethereum closing the market cap.
Disparities Between Ethereum And Bitcoin
Before we dive deep into this matter, it is important to know that both Bitcoin and Ethereum are different in many ways.
Technically speaking, there are no limits on which you can use Bitcoin. The recent surge in popularity has taken Bitcoin a step closer to the mainstream currency. No matter what we say about Bitcoin being limited to 21 million, the current market has an abundance of Bitcoin.
However, Ethereum started its career as a computing platform that assists with scripting languages. This language was then modified for smart contracts. Like the other Blockchain, Ethereum is also an open-source network.
That means anybody can enter the network and use the network and implement smart contacts.
Ethereum Have Benefits Beyond Cryptocurrencies
Ethereum is a network, and the Cryptocurrency we use is Ether. It is simply a product of Ethereum. Originally, Ethereum is a computing platform that helps developers to build decentralized applications.
For instance, if a business thinks that they need an Ethereum network to run their business, they can simply hire a programmer to build an Ethereum network.
On the other hand, Ether is a Cryptocurrency capable of performing the same task as Bitcoin.
How Does Ethereum Work?
The whole functionality of Ethereum shares its characteristics with the Bitcoin network. However, if you get to the details, you will be able to see that Ethereum has taken Bitcoin’s functionality Proof of Work (PoW) and have changed it according to its requirements.
Ethereum has used its own code and created decentralized applications that can work on the Blockchain network. You can know more about the Ethereum and decentralized application on bigmoneyrush.io.
There has been a misconception about Ethereum being a Cryptocurrency. Ethereum is just the platform on which Ether performs. Hence, you can say that the major role of Ethereum is to compensate the miners for their computation.
Ethereum has several possibilities as it is not limited to Bitcoin. Ethereum is a network that can be used to create decentralized applications. That means it has several options to enter the ant industry with its products. Hence, there is no denying that it holds the possibility of becoming the next Bitcoin for traders and investors.