Bitcoin is the king of cryptomoney, there is no doubt about that, but Ethereum, the second one, can be an interesting investment opportunity, because of all its qualities. On this subject I will focus on today’s content.
The crypto world is not the exception to the rule of constant competition and innovation in competitive environments, since this medium also has other cryptomonies, besides Bitcoin, which are beginning to take relevance, such as Ethereum.
Bitcoin is the main reference for cryptomonies and crypto world. However, it’s a mistake to concentrate only on the first cryptomoney the world knew. Although, at present, it is still the main virtual currency before everyone, maintaining its prominence as the image of the community. The endless number of cryptomonies that arise every day also require our attention.
Ethereum miners increase gas limit
A new cryptomoney is born: Ethereum
From mistakes, new needs are born, and thanks to these needs, new inventions and improvements have emerged from the crypto community, which have been looking for the advancement of Blockchain technology, as well as the improvement of the capabilities offered by BTC.
However, Bitcoin has not been able to avoid the sharp criticism it constantly receives, even from the influencers who defend the blockchains. Despite the technological advances that BTC has brought in the use of the Blockchain, there are many obstacles to the development of cryptomoney.
Although Bitcoin maintains its dominance over other cryptoactives, especially because of its greater liquidity in relation to other cryptomonies, disadvantages in its operation have begun to become apparent.
What is crucial is the size of the blocks in the BTC chain. When Satoshi Nakamoto, the anonymous creator of Bitcoin, launched the coin in 2009, 1 MB blocks were more than enough for the size of the network.
However, this size has fallen short of the number of users and transactions that are Corona Millionaire made. This is what is known as the „Bitcoin scalability dilemma“. As the number of users and transactions in the crypto-currency has increased, the small size of its blocks has delayed the execution of commercial activities with Bitcoins. This generates a protracted waiting time within the Blockchain for operations to be executed.
ABC Crypto, Lesson 8: Ethereum and the Birth of Smart Contracts
Ethereum Achievements: Smart Contracts
The second problem lies in the lack of freedom for the Blockchain developers. For, the fact that it is so complicated to get the mining farms, representatives on whom the BTC update depends, to agree. It makes crypto currency not so malleable to create new applications for it.
Vitalik Buterin, creator of Ethereum, realized these problems. Who in 2013 began the development of his own cryptomoney, and in 2015 launched it to the market. His goal „is to become a Blockchain capable of running decentralized applications. And to achieve this, he included unique features in his cryptomoney.
Among them the ability to use and create smart contracts. A revolutionary functionality, which allows Ethereum to be one of the most complete and powerful Blockchains in the crypto world. These Smart contracts are contracts that instead of being written on a sheet of paper and sealed by the respective authorities. They are programmed in a block of the Blockchain.
This brings the advantage of automating the compliance process. So, for example, if an intelligent contract is created around the purchase of a product. The payment for this could be executed automatically, once it is in the hands of the buyer, speeding up the whole contractual process.