Three Reasons Ethereum Is Growing As Fast As Bitcoin
Bitcoin isn’t the only cryptocurrency that has grown extensively over the years. There has been a significant rise in the value of Ethereum as well. It has gained a lot of attention in recent times because it is outperforming every other cryptocurrency out there.
Read on to understand how it has gained an edge in the market…
Comparison between Bitcoin and Ethereum
Bitcoin was released in 2009, while Ethereum came into existence in 2015. The minimum block time of Ethereum is 12 seconds, and for Bitcoin, it’s 10 minutes which means the former’s confirmation time is way faster comparatively. Supply is the next important factor differentiating the two cryptocurrencies. Around two-thirds of the total Bitcoins are mined already, whereas more than half of Ethereum’s available value remains mined.
Bitcoin miners are rewarded with half of its value every five years, whereas Ethereum miners are awarded according to Ethash, which works according to the proof-of-work algorithm. Moreover, Ethash discourages decentralization of mining, whereas Bitcoin is ASIC centralized.
Ethereum’s major costing factors include storage requirements, complexity, and usage of the bandwidth. In the case of Bitcoin, the transactions are affected by the block size.
Also Read: Corda vs Hyperledger vs Ethereum
Reasons for the exponential growth of Ethereum –
1. Ethereum uses smart technology
Ethereum is a blockchain platform featuring multiple aspects. Ethereum comes with Turing, an internal code for calculating computing power and time, whereas Bitcoin doesn’t include this feature. Ethereum’s coding allows the miners to run it on all kinds of contracts or programs ideal for solving complex equations.
EVM or the Ethereum Virtual Machine uses ether for smart contracts. Like other digital assets, ether can be saved in a digital wallet which does by Ethereum. It allows the miners to create smart contracts. The cryptocurrency is operated by a user network that uses ether for parceling out the resources.
The advanced technology used in smart contracts of Ethereum offers the benefit of high-end security to the miners. Plus, it is ideal for contract facilitation and negotiation. In other words, Ethereum is one of the decentralized options for verifying and enforcing blockchain contracts.
Decentralization alleviates the possibilities of censorship or fraud. The smart blockchain technology used in Ethereum allows things to record quicker in comparison to Bitcoin. It takes only a few seconds for the items to get registered. These contracts offer a greater sense of security while reducing the cost of association.
2. Flexibility and efficiency in the application
Mines can easily create digital tokens using Ethereum. It is easy to represent proof of membership, virtual assets, and shares with digital tokens. Plus, the tokens are used for multiple purposes, such as share representation, fundraising, and voting forms. Individuals can benefit from the fluctuating value in circulation or get a fixed number of tokens as per the standard rules.
Organizations and companies looking for an efficient and robust blockchain and network can benefit themselves with the flexibility and speed of Ethereum. Plus, it also eliminates the need for legal intermediaries like a court or a lawyer, making this cryptocurrency one of a kind. Generally, a third party is needed to complete a trade, transaction, or establishing a legal document making Ethereum highly efficient.
Moreover, this cryptocurrency is backed up by prominent Fortune 500 companies, technology vendors, start-ups, and academics vendors. They regrouped and created the Enterprise Ethereum Alliance, one of the world’s largest blockchain-based open-source platforms.
Ethereum is an Enterprise-grade system which makes it highly efficient in handling demanding and complex trading applications. With over 180 members featured in the alliance, Ethereum is growing in popularity among prominent institutions like Microsoft, Mastercard, JP Morgan, and ING.
3. Less traditional expense and no paperwork
Ethereum is one of the few cryptocurrencies that help provide an efficient structure so that the organizations can better understand the market required to get the details of source funding. Individuals can collect different proposals from various sources and miners who back the project. The votes are then held for strategizing the mining process.
The usual expenses, including that of paperwork and hiring personnel, are reduced to a great extent. Though Ethereum works based on decentralization, it never faces downtime, which allows it to outperform.
Here’s the comparison between Blockchain and Bitcoin
Ethereum and Bitcoin don’t have a common purpose. The latter was created to have an alternative for currency. Therefore it serves as a payment mode for various transactions. On the other hand, Ethereum was created to develop a platform to facilitate peer-to-peer smart applications and contracts through a digital currency.
In a nutshell, Ethereum and Bitcoin are two different blockchain technologies with other purposes. The former is smarter technology which is why it is growing at a rapid pace. However, both the digital currencies offer great returns, but at the pace with which Ethereum is growing, miners can get huge returns quicker than they could with Blockchain.