The crypto surge that is being witnessed globally is no longer exclusively driven by the Bitcoin craze. We can see the top #2 currency by market cap, Ethereum (ETH), one of the top cryptocurrencies grabbing eyeballs and market share very steadily. Ethereum wins on several parameters in the Ethereum vs Bitcoin debate. Ethereum or Ether is fast gaming momentum in India as well, where the exchange ratio is 1 ETH to INR 40k (approx.) currently. More and more people want to invest in Ethereum due to the additional benefits it provides. Its price has been stable recently, and it is a usable cryptocurrency like Bitcoin. Ethereum can be purchased via debit, and credit cards, and even UPI as well. Currently, over 100 million Ether tokens are in circulation.
Vitalik Buterin proposed the Ethereum Network in 2013. In 2014, the development costs were funded by Vitalik and his supporters via a crowd sale. For every Bitcoin contributed, a total of 2000 Ethers were offered. Finally, 2015 saw the launch of the Ethereum Blockchain. The price of ETH surpassed the $500 mark in 2018, and since then, it has risen above the $580 mark and almost touched the $600 mark in December 2020. The daily gas usage or transaction fees of Ether has also seen some fresh all-time highs. Higher gas usage means higher on-chain user activity.
Let’s find out why the Ethereum network is gaining popularity among crypto traders and investors.
Ethereum is not just a digital currency but a blockchain-based platform with varied aspects and scope. It can be used to create new coins, unique contracts, and new applications like the game Etheria stored on Ether’s Blockchain. The code powering Ethereum – Solidity, known to be Turing-complete, helps run any program or smart contract having the most complex computational equations.
Ethereum’s EVM (Ethereum Virtual Machine) is a smart contract using Ether (Ethereum’s currency) for peer-to-peer contracts. Ether is stored in an Ethereum wallet and other cryptocurrencies, which also supports ‘smart contracts.’ Ethereum has been described as “a single shard computer run by the network of users and on which resources are parcelled out and paid for by ether” by the New York Times.
The launch of Ethereum 2.0 is highly anticipated. There are several updates lined up for Ethereum’s network:
- Plasma/Raiden: This would help in making the transactions faster and cheaper over the ETH network.
- Casper: This update would move the Ether blockchain to a better proof of consensus – from PoW (Proof of Work) to PoS (Proof of Stake)
- ZK-Snarks: An idea is being actively worked upon to make ETH anonymous.
- Shards: This would help in increasing the scalability of the ETH network.
Tokenization via ETH Network
Digital tokens used to represent virtual shares and proof of ownership, among others, can be created on the Ethereum network. These digital tokens perform several functions, such as raising funds, representing shares, and forms of voting. The speed and agility inherent in Ethereum’s blockchain attract many companies and organizations. Being an open-sourced and decentralized platform, Ethereum removes t third party’s need like a lawyer or any legal intermediary to complete any legal document.
Investors who want to invest in an ICO (Initial Coin Offering), or hold any ERC-20 token, need an Ethereum-based wallet. Out of the top 100 cryptocurrencies by market cap, Ethereum-based tokens form a majority. As such, with the growth of such cryptos and the entire market, ether would gain momentum on its own.
Faster Block Time for Greater Security
Ethereum’s GHOST protocol is lightning fast, with an average block time of just 12 seconds compared to 10 minutes as Bitcoin’s average block time. This implies faster confirmations, which of course, means better adoption potential. The associated costs are also toned down due to the speed. Ethereum’s smart contracts use blockchain stored applications for negotiating and facilitating contracts. This decentralized network makes any fraud or censorship a rarity.
The Enterprise Ethereum Alliance is the largest open-source alliance in the world. This alliance includes Major Fortune 500 companies, academics, startups, and technology vendors.There are more than 180 members in the alliance, including JP Morgan, Microsoft, Mastercard, ING, and other such industry leaders. The alliance was built with the main objective of creating Enterprise-grade software by using the Ethereum blockchain. The software so developed would be able to handle the most complex and demanding business applications.
General Consensus and active developers
The developers, miners, and traders of Ethereum are quite active and gather regularly to talk about the latest development and future possibilities of the Ethereum Network. The Ethereum community worldwide works much more closely via consensus, unlike Bitcoin that keeps forking because of a lack of broad consensus in the community. A lot of forces are working globally in coordination to make Ethereum better.
Credit : dailyhostnews.com