Jimmy

Is Ethereum More Important Than Bitcoin?

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Is Ethereum More Important Than Bitcoin?

 

Blockchain technology, the distributed ledger system that underpins the digital currency Bitcoin, is getting a lot of attention from Wall Street lately. With uses ranging from cross-border payments to settlements and clearing of over-the-counter derivatives to streamlining back office processes, the potential for disruption in the financial industry and elsewhere is growing more real each day. While bitcoin is the most widely used and well known use case of blockchain, Ethereum may be the killer app that allows for this disruption to finally take place. (For related reading, see also: How Will Bitcoin 2.0 Change the World.)

 

The token native to the Ethereum blockchain, Ether (ETH), has recently risen to over $10 per ETH, and the market capitalization of all ether is nearly $800 million, making it the second most valuable blockchain behind bitcoin (which represents approximately $6.5 billion of value). What is Ethereum and why is it interesting?

 

A Brief Overview of Ethereum

 

Ethereum was developed to augment and improve on bitcoin, expanding its capabilities. Importantly, it was developed to feature prominently “smart contracts:” decentralized, self-executing agreements coded into the blockchain itself. Ethereum was first proposed by Vitalik Buterin in 2013 and went live with its first beta version in 2015. Its blockchain is built with a turing-complete scripting language that can simultaneously run such smart contracts across all nodes and achieve verifiable consensus without the need for a trusted third party such as a court, judge or legal system. According to its website, Ethereum can be used to “codify, decentralize, secure and trade just about anything.” In late 2014, Ethereum raised over $18 million in bitcoin by way of a crowd sale to fund its development.

 

The ‘Ethereum Virtual Machine’ (EVM) is capable of running smart contracts that can represent financial agreements such as options contracts, swaps or coupon-paying bonds. It can also be used to execute bets and wagers, to fulfill employment contracts, to act as trusted escrow for the purchase of high value items, and to maintain a legitimate decentralized gambling facility. These are just a few examples of what is possible with smart contracts, and the potential to replace all sorts of legal, financial and social agreements is exciting.

 

Currently, the EVM is in its infancy, and running smart contracts is both “expensive” in terms of ether consumed, as well as limited in its processing power. According to its developers, the system is currently about as powerful as a late 1990s-era mobile phone. This, however, is likely to change as the protocol is developed further. To put this into perspective, the computer on the Apollo 11 lander had less power than a first-generation iPhone; it is certainly plausible that in a few short years, the EVM (or something like it) will be able to handle sophisticated smart contracts in real time.

 

Within the Ethereum ecosystem, ether exists as the internal cryptocurrency which is used to settle the outcomes of smart contracts executed within the protocol. Ether can be mined for and traded on cryptocurrency exchanges with bitcoin or fiat currencies such as US Dollars, and is also used to pay for computational effort employed by nodes on its blockchain. (For more, see: What is Ethereum?)

 

 

Read More:  http://www.investopedia.com/articles/investing/032216/ethereum-more-important-bitcoin.asp


Cryptocurrencytalk.com

Discussing the world of cryptocoins and cryptocurrencies.

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I read too many info about both of them, and I can say that ethereum has good chances to be the number one cryptocurrency, at first cause it just faster then bitcoin

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As I know  main goal of the project Ethereum is to create the Distributed World Computer - a decentralized network of transactions managed by smart contracts.
So it will be good step!

alexnikon911 likes this

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Interesting post from that blog, tho I think that we all know about ICOs and their main purpose. I just can't get around who buys them at end. I mean seriously for every new project theres a token of some kind.... Everyone likes money and I mean who even buy those tokens later when people dump them they even don't have most of the use cases...

 

People are just buying air and they don't care about it as long as if you play smart you could exit in the smart way, but there are those who get dragged in. With these ICOs and some alts its just like buying thin air and hope that somebody will pay more for that air in the future... this is ridiculous what people are doing with crypto currency thats why it is stopping it from real adoption as prices aren't stable always some kind of a bubble.


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Yea, it's insane that people keep buying the ICOs.  Eventually, what is going to happen is the same thing that happened when altcoins first came out.  This is going to sound harsh, but it's reality to the extreme:

 

Someone is going to lose everything with one of the ICOs, they're going to get mad get their gun, find people on the developer or adviser list, I shoot them.  It will be blasted over the news and regulators will be swarming in like flies on shit.  You'll read in the paper how Jonny Whatever invested all his money in X ICO, the ICO tanked, and he lost everything... he then lost his mind and decided to enact revenge.

 

I know of several altcoin developers who've had disgruntled investors show up at their house and threaten them.  And those were fair launched altcoins without any promise, hype, or promotion.  As the money increases the more insane the person who lost everything will become.

 

Money makes people crazy, losing it makes people insane.

 

 


Cryptocurrencytalk.com

Discussing the world of cryptocoins and cryptocurrencies.

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I agree with the opinion about the speed of currency. This is good reason to consider Ethereum better than bitcoin. I think that ethereum is more progressive and modern

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Ethereum is not more important, but in some ways better than bitcoin. Speed, convenience of mining these are the main advantages of the Ethereum before Bitcoin, although not all. It is important to understand that for development Bitcoin needed a competitor and he appeared and this is the importance of the Etherium, because the better it is, the better bitcoin will be.

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They are both important, because they use different technologies and because of this they develop crypto-currencies. It can not be said that one of them is more important. Bitcoin is more popular only because it appeared earlier.

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4 hours ago, Jimmy said:

Yea, it's insane that people keep buying the ICOs.  Eventually, what is going to happen is the same thing that happened when altcoins first came out.  This is going to sound harsh, but it's reality to the extreme:

 

Someone is going to lose everything with one of the ICOs, they're going to get mad get their gun, find people on the developer or adviser list, I shoot them.  It will be blasted over the news and regulators will be swarming in like flies on shit.  You'll read in the paper how Jonny Whatever invested all his money in X ICO, the ICO tanked, and he lost everything... he then lost his mind and decided to enact revenge.

 

I know of several altcoin developers who've had disgruntled investors show up at their house and threaten them.  And those were fair launched altcoins without any promise, hype, or promotion.  As the money increases the more insane the person who lost everything will become.

 

Money makes people crazy, losing it makes people insane.

 

 

I never though on that way but it is scary to hear that. But again we don't know what human greed is capable of.


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Well, ofc, Eth is the future of cryptocurrency , its increasing and becoming very popular so fast!  But actually i prefer btc

Its easier to my mind  :/

IMHO :)

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