Many speculations have arisen on the web concerning the cryptocurrency Ethereum also known as Ether. Many believe that this cryptocurrency has several features that allow it to use the full potential of the blockchain to maximize security. This and the growing amount of mined Ethereum making it the second biggest cryptocurrency in the world has the potential to raise the cryptocurrency value in the future. Since there are numerous benefits of Ether over Bitcoin and other cryptocurrencies, we have decided to explain those features and hopefully attempt to make a forecast for Ethereum.
Ethereum – What Is It
Ethereum is a cryptocurrency that unlike Bitcoin has multiple other benefits. First started in 2014 by Vitalik Buterin, the blockchain differs from Bitcoin primarily because of its contract mechanisms, which allow for the cryptocurrency to act as a standalone currency. Bitcoin on the other side features the support of cash transactions and with so much invested in BitCoin, the cryptocurrency has the potential to become a cash-like currency. On the other side, Etherium is a more sophisticated cryptocurrency that works with a complicated contracts, and it is not oriented towards transaction and validity of money. This makes Ethereum more suitable for online transactions instead of the BitCoin currency which has a wallet that has SmartContracts and can work with cash.
What Are the Differences To BitCoin
There are several key points by which “Ether” is very different from BitCoin.
The model of Ethereum is more economical than Bitcoin – the rewards when it comes to Bitcoin are halved on each 4 years while Ethereum provides an equal quantity of Ether each year constantly.
Ethereum began as a crowd-funded project whereas BitCoin was created by unknown entity and only the ones who were first to mine it took most of the coins with them. With Ethereum, there is the possibility that 50% of the coins to be owned by all the miners after 5 or more years.
Ethereum does not support centralized pool mining via it’s Ghost Protocol, giving stale blocks. This means that whether you use a pool or not, there will be no significant advantage over standard Ethereum mining.
Ethereum has a unique internal code mechanism that allows it to be calculated with enough time by any miner hardware whereas in Bitcoin the rewarding mechanism is different.
Ethereum uses it’s own algorithm, called Ethash which drives users to use their GPUs to mine and hence is more focused on decentralized mining instead of supporting mining pools which are centralized.
The block time is much faster when it comes to Ethereum. It takes literally 14 to 16 seconds for a block whereas in bitcoins the same amount of time should be approximately 10 minutes. This gives the possibility of the much faster transaction to be conducted.
The Bottom Line for Ethereum
Unlike BitCoin the type of language Ethereum is written on is what professionals in this sector refer to Turing Complete. This means that with enough time and hardware anything is achievable, whereas, in BTC, this is not the case. Not only this, but Ethereum also has the potential to work based on TCP. This means that an IP address becomes an identifier of a given Ethereum wallet. This genius tactic allows for new services to be developed, such as the ones at Slock.it that allow for a simple phone number to be required when it comes to an Ether transaction.
Ethereum is surely a crypto-currency that has the potential to expand rather fast primarily because of the opportunities it offers to miners. But for the present and near future, it will be challenging for this cryptocurrency to overtake Bitcoin, primarily because of the sheer size and applications of Bitcoin.