3 Ways Ethereum Is Gradually Becoming Better Than Bitcoin
Originally, Ethereum was brought to life in order to expand the features of bitcoin and for it to prosper to a greater extent. In fact, it was made in order to allow for smart contracts. These create the ability to request some accountability from those performing transactions with cryptocurrencies.
Because digital currency transactions involve virtually no accountability whatsoever, this improvement to transactions was beneficial, particularly for those receiving digital currency payments. The first beta version of Ethereum was up and running in 2015. So, what has happened since then? How much has Ethereum grown since this time? Is it possible that Ethereum may reach the heights of bitcoin, if not higher?
1. Ethereum Virtual Machine
The EVM is capable of fulfilling countless transactions. If you are interested in creating options contracts, coupon-paying bonds, swaps, wagers, bets, developing employment contracts, escrow possibilities, and gambling without decentralized institutions being involved, these are all available thanks to the smart contracts Ethereum advertises.
The Ethereum Virtual Machine is still in its initial stages, so at the moment the usage of smart contracts is costly due to both the ether that it burns and the processing power that goes into these transactions. Developers of EVM admit that the system is no stronger than a mobile phone of the 90’s. That should speak for itself. However, if we remain patient and give it a few years, it is probable that the Ethereum Virtual Machine will grow to the likes we have never seen before, able to manage even the most complex smart contracts.
2. DAOs and their relationship with Ethereum
Decentralized Autonomous Organizations may be possible with the help of smart contracts. Not only will financial transactions such as selling and buying materials be possible, but managing deals, making the most out of profits, balancing budgets and hiring labor would also be possible. And all of this without a single sign of middlemen or financial institutions playing a part.
This means that in the future people may be directly employed by machines, along with an endless amount of other innovative possibilities. Despite the fact that DAOs are only a pipe dream at the moment, Ethereum is determined to develop smart contracts to the point that DAOs become possible, gain prominence, and become as powerful as financial institutions are today.
3. DAPPS and Ethereum
Decentralized applications are currently made possible by Ethereum. The applications not only employ smart contracts, but run on the Ethereum Virtual Machine as well. Applications vary to cover a range of needs. Application types consist of micro-payment platforms, gambling applications, reputation functions, P2P marketplaces and schedulers. There is an application available for virtually every need you have. Not all of these applications have passed the development stage but many will be available before you know it.
Bitcoin has done much for the world of cryptocurrency, first establishing blockchain technology and allowing other cryptocurrencies the materials to follow in its footsteps. Ethereum, however, is just as able to lead the way into a more prosperous future due to digital currency. This is most notably thanks to Ethereum’s development of smart contracts.
By way of smart contracts, transactions become authorized, safe, and come with a certain amount of accountability and responsibility towards the person fulfilling the transactions. This allows those who are receiving smart contracts and the amount transacted to feel safe and secure due to the fact that these transactions have been authorized.