The million-dollar question – Can Ethereum overtake Bitcoin

The million-dollar question – Can Ethereum overtake Bitcoin
The million-dollar question – Can Ethereum overtake Bitcoin

The million-dollar question – Can Ethereum overtake Bitcoin

Synopsis

Ethereum’s success is its ability to execute smart contracts. This means user assets and money may hand over once certain conditions are fulfilled. Trading activities are undertaken using the ether platform. This is the phenomenon for its success and has taken a safe place as the second most sought-after crypto.

Ethereum was launched in 2015. This particular crypto deploys blockchain philosophy, supporting decentralized finance and smart contracts. Due to its technical advantage and proof of stake capability, it has a safe place in the market. As of today, the total market capitalization of Ethereum is at $363 billion. This crypto has taken the second popular crypto after Bitcoin.

Before proceeding further into the read, let us understand the working model of both these cryptocurrencies. Bitcoin is built on blockchain technology. Bitcoin allows users to send coins and tokens between each users. There is no central bank involved in this transaction. Bitcoin deploys users across the globe to verify these transactions using blockchain technology. Blockchain is a decentralized network. This network allows many users to create single blocks of chains to store transactions. These users also termed as validators check and monitor the transaction details. As an incentive to the efforts, Bitcoin is minted as a reward. This process is known as Bitcoin mining, one way of legit methods earning Bitcoin. An important factor to note here is the scarcity of bitcoins. As of today, there are 18 million Bitcoin users across the globe. Data mining activity may stop as and when users reach 21 million on average.

Bitcoin has also attracted investors globally. Also, most countries today widely accept Bitcoins as an official medium of exchange. El Salvador was the first country to legalize bitcoins. You can buy products and services using Bitcoins. Another popularity of Bitcoin is related to its acceptance by major companies. This includes Tesla, Microsoft, and JP Morgan Chase. Despite, its growing popularity there is huge concern about environmental hazards by Bitcoin. The crypto takes humongous energy in their mining activity. Many miners across the globe along with high-speed internet connections are always working on this mining process.

Ethereum on the other hand also takes a similar working model as that of Bitcoin. But, the benefit lies with the software platform utilized. There is no host and developers across the globe are building blockchain applications. These apps can run on their own. There is no single company or network monitoring activity. Examples of Ethereum based apps include online exchange, insurance companies, and gaming.

The concept of smart contracts and its execution attracted global attention. This means there is no need to solve complex mathematical algorithms. User assets including money is transferred between users once certain conditions are met.

Launch of Ethereum 2.0

While the popularity of Ethereum continues to grow, this platform also has disadvantages. The network is popular amongst investors. This has also resulted in congestion and delays in undertaking transactions.

The developers are working on Ethereum 2.0 to remove current platform deficiencies. This will also include adopting proof of stake capability as compared to proof-of-work. With proof of stake in place, the system will undertake and complete transactions effectively. Ethereum 2.0 also promises reduced power consumption making this platform sustainable.

Wipro Joins Enterprise Ethereum Alliance as Founding Member to Develop Enterprise-Grade Blockchain Solutions

Ethereum and the role of decentralized applications

Decentralized apps run on the independent network without any third party or company to monitor transactions. This application is particularly useful for the Health line industry. Other retailers including gaming apps and micro-payments units also benefit from this platform. These stand-alone applications make use of smart contracts and run using the EVM platform.

Future growth of Ethereum

With the onset of Ethereum 2.0 entering the market, it is expected to increase the price of this crypto as well. Currently, Ethereum is priced at $4000 per coin. This price is expected to increase to $8000 by 2022. Between 2023 and 2025 Ethereum shall increase its value to $16000. Going by current market predictions, Ethereum is an ideal investment with a high-risk appetite.

While both Bitcoin and Ethereum continue to attract investors, it is worth waiting and watching to understand if Ethereum will completely overtake Bitcoin. The launch of Ethereum 2.0 with new and advanced technology can boost up this process for Ethereum.

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