Ethereum Surpasses Bitcoin : Possibility Explained
Ethereum surpassed Bitcoin, said the news. Well, we all are wondering about Ethereum’s future worth by seeing it giving tough comepititon to Bitcoin. Here is the answer what might be the result of Bitcoin vs. Ethereum.
Battle of the Coins
Ethereum has slowly and steadily been making its place in the cryptocurrency world. With giants like Intel, J.P. Morgan, Microsoft and Accenture being part of the Enterprise Ethereum Alliance (EEA) along with 86 more companies that joined in May, backs Ethereum’s intrinsically trusted system. Ethereum in fact, has been given the name of of ‘World Computer’ for it is the most promising solution for enterprise Blockchain adoption with its maturity and multi-purpose design.
Bitcoin on the other hand, is our safe space. It has grown progressively over the years, touching an all time high of over 3000$ this year. Though bitcoin has had it fallbacks, it has proven to be much less volatile than the other altcoins present in the market. The concept, though limited to peer-to-peer to electronic cash transfer, is simple and has a broad investor base.
While Bitcoin has certainly been in the market for longer, it is becoming increasingly clear that it is not the only game in town. Itsblockchain.com tells you why..
Bitcoin might be the most popular crypto-currency as of 2017, but it certainly isn’t the most top-performing one. While Bitcoin doubled its vaue this year, Ethereum rose by an astonishing 2000%.
Though Bitcoin’s current market cap of nearly $40 billion is more than double that of ether, but investors see the power of the corporate involvement with Ethereum and the appeal of the smart contract capabilities.
And with even the entertainment industry bringing out TV Shows like Silicon Valley, the future looks bright for Ethereum with Ether getting enough limelight to enter into the mainstream.
The first thing you should know about Ethereum is that it is not just a digital currency. It is a blockchain platform with many aspects. The primary feature of Ethereum that has drawn the interest of corporations is its support of smart contracts. (Beginners hint : Smart contracts are computer algorithms that automatically execute the terms of a contract as soon as the contract’s conditions are met)
Not to mention, Ethereum’s data processing is much faster than Bitcoins, due its GHOST protocol. Where Bitcoin’s average block time is about 10 minutes, Ethereum’s aims to be 12 seconds. This means that Ethereum’s system automatically applies the terms and conditions of a contract once it has been agreed upon.
Rewards wise, the reward for mining Bitcoin halves about every four years because almost two-thirds of available bitcoins have already been mined. Ethereum, which still more than half of coins left to be mined (it raised its launch capital with a pre-sale), rewards miners based on its proof-of-work algorithm called Ethash. Ethash encourages decentralized mining by individuals, rather than the use of more centralized ASICs as with Bitcoin.
Another part where Bitcoin lacks is the Turing Complete code. Ethereum featuring it, means that anything can be calculated with enough computing power and enough time.
Basically, where Bitcoin has emerged as a relatively stable digital currency, Ethereum aims to encompass more.
Six months ago, a concept called Numeraire, a Blockchain and cryptographic token-based ecosystem wherein data scientists are incentivized to create a more efficient market for traders was developed. Earlier this week, Numerai migrated its platform from Bitcoin and deployed the Numeraire smart contract to the Ethereum network, sending 1.2 mln tokens to 19,000 data scientists globally.
When the brain behind Numeraire, Richard Craib was interviewed he said
“It’s all about Smart Contracts now. The problem with bitcoin is that it exists on a different blockchain to the Numeraire token. If Numerai made payments in ether, then a decentralized application on Ethereum could automatically use that ether to fund its operations.”
Now, you might think that Ethereum is inferior to Bitcoin because its price value is lower. On the contrary, this is actually a good thing for potential investors who are looking for alternate means of investing. The lower price may attract more investors as there is higher room for growth.
Even cities like Dubai are quickly converting, along with all the industries. It looks like they will incorporate blockchain, and specifically Ethereum into their business practices while going forward.
Thus from an investor point of view, with the “currency” called Ether having been carved out of this larger entity – Ethereum, it stands a great chance of maturing and succeeding in lockstep.
Because of reasons like these, Ethereum’s goal to make a decentralized internet, is gaining a lot of popularity. It could one day replace a lot of technology and ways that we host and execute code online. And that day, it might truly become the ‘New Internet’.