Blockchain technology has been getting a lot of traction from institutional investors recently. With use-cases ranging from cross-border remittances to settlements and issuing of over-the-counter derivatives, the potential of blockchain technology is surpassing the odds traditional investors bet against it. While Bitcoin is the most widely common blockchain application, many other technologies are also giving crypto investors a run for their money.
Although nascent, Ethereum is still better than most technologies that exist in the crypto universe. According to its developing team, the platform is currently about as functional as a late 1990s-era mobile phone. However, this can probably change as the back-end team is developing the technology continually. The analogy alludes to the fact that the technology you are experiencing right now is only the beginning, as the platform stores immense potential for handling real-time contracts in the digital space. Go URL for more information on Ethereum.
You can call Bitcoin the father of cryptocurrency, but the actual platform that has been championing the cause to the masses is Ethereum. As a result, here are four reasons Ethereum can outdo Bitcoin in the digital space.
1. Ethereum Smart Contracts
Initially, Ethereum was developed to enhance and elevate Bitcoin, expanding its capabilities. However, lately, the platform has been gaining traction of its own. Ethereum is one of the blockchain portals that you can say entails intrinsic value, thanks to its stellar tech and several use cases with its robust features and state-of-the-art code.
More importantly, it is the first platform to integrate “smart contracts.” Ethereum went live with its beta version in 2015. However, its smart contracts feature was the one that gained the most applause from tech enthusiasts worldwide. Smart contracts enable users to achieve authentic consensus eliminating the need for a trusted third party, including a court, judge, or any legal system.
The ‘Ethereum Virtual Machine’ enables users to craft smart contracts, including digital agreements, financial deals, swaps, coupon-paying bonds, and legal treatises. Ethereum augments the implementation of several applications owing to the smart contracts technology making it one of the most versatile blockchain platforms.
2. NFT Marketplaces
Yes, all the legitimate Non-Fungible Token (NFT) marketplaces that exist in the digital space are powered by Ethereum. Since NFTs are digital creations that entail a unique number to authenticate the originality of assets, the technology that enables developers to make it happen is through smart contracts. One of the fascinating promises that blockchain makes is ruling out the intermediaries part.
As a result, NFT marketplaces provide a quick exchange with no meddling by the brokers. NFT marketplaces are making rounds amongst crypto investors due to the increasing adaptability of the digital space. Since the pandemic has forced everyone to reimagine their lives the virtual way, why not trade assets implicitly too!
Therefore, NFT marketplaces empower the trade for everything, from digital art pieces, rare in-game items to music videos and even the image of a tweet signed by Jack Dorsey himself. NFTs are everywhere, and technology is only going to get better in the meantime. Click here to know more about crypto trading and exchange.
3. Decentralized Projects & Applications
Several decentralized applications are being powered by Ethereum today. From micro-payments projects to reputation functions, Ethereum is on the minds of everybody. A crucial feature of the Dapps or DeFi projects is that they run over a similar network, eliminating an overseer’s need. All multi-party portals that exist in the blockchain universe today are brought to you by Ethereum.
On the other hand, Bitcoin has only been able to make its mark in the payments niche and lacks the versatility the crypto industry needs to attract institutional goliaths and investors to make their play. Ethereum powers diverse applications through its technology, including chatting platforms, games, P2P marketplaces, NFT platforms, finance, data and analytics, and banking applications.
Since the decentralized application projects integrate smart contracts and run more efficiently on EVM, Ethereum is the only player in the game making magic happen.
4. Rise of DAOs (Decentralized Autonomous Organizations)
Decentralized Autonomous Organization (DAO) are organizations responsible for carrying out transparent and regulated proceedings via smart contracts and protocols on their blockchain networks. And, the only way they are going to see the light of day is with Ethereum.
Although DAOs are relatively nascent and inefficient at the moment, Ethereum is the only competent platform to make it happen even in the future. Bitcoin entails very limited use-cases and is only efficient when it comes to payment gateways. However, with Ethereum, the potential of the DeFi applications growing is immense.
For instance, Aragon is one such decentralized autonomous organization operating on Ethereum currently. Leveraging Ethereum, Aragon permits users to make and manage a variety of crypto protocols, decentralized communities, Dapps, and more networks via its open-source framework.
Although Bitcoin rules the crypto world, it is time that a successor takes the throne, and what better an heir than Ethereum? What Bitcoin did for the payments regime, Ethereum can do for the various applications it empowers. From P2P marketplaces to RPG games and trading, Ethereum is everywhere, and there will not come a day when it will just vanish from our lives. With an integrated scripting language and Ethereum Virtual Machine, there is almost nothing that the platform cannot forge with the right code.
Individuals can also utilize its native cryptocurrency, ether, to pay off the corresponding nodes for yielding their processing power. These nodes empower decentralized applications and marketplaces to operate autonomously. On the other hand, developers can make use of Smart Contracts to supply ICO tokens to even crafting Decentralized Autonomous Organizations (DOAs) on blockchain technology.
Apart from this, Ethereum has been known to power the data and analytics sector. However, most people naturally lack interest due to the wavering confidence and trust. As a result, to help people realize the potential of crypto, and Ethereum in particular, the developers have been coding extensive DeFi projects that help users track, analyze, monitor, and predict trends.
Ethereum is the new godfather in the crypto regime, and sooner or later, the market too will realize that.