Ethereum is a digital coin on the rise in the world of digital currencies. In terms of its quality, it’s slowly approaching bitcoin and is becoming the second most valuable method in this payment system. Ether first appears in 2015 with the goal of strengthening bitcoin. Similar to bitcoin, it serves a decentralized payment method that involves money transactions without the need for a bank account and completely anonymously. All transactions are available in the system and can be accessed by all members of the network. This platform is in charge of smart contracts, applications that work without the possibility of censorship, fraud, or interference from other entities. At first glance, the first two most popular currencies have a lot in common. Both use blockchain technology and serve as payment currencies. However, if we look a little deeper, these two cryptocurrencies are quite different in their basic functions, manner of use, and design.
Those who advocate ethereum claim that it has many useful advantages over bitcoin. Experts believe that because of these advantages it could be far more effective in online trading. With just a few minutes a day at the computer, you can become a millionaire. Cryptogroup adds that fast trading software, which is always a few seconds ahead of the others, is half the job done.
If you’re new to the crypto world and you’re still not sure which coin to invest in, we bring you some of the reasons that can explain the benefits of ethereum and help you decide.
1. The leader of smart contracts
Unlike its rival, this currency is designed to contain many more useful features that would be helpful to the business corporate world. The primary feature that has undoubtedly attracted the interests of large corporations is the support of smart contracts.
Smart contracts function through computer algorithms that have the role of automatically executing contract items as soon as the necessary conditions are created. Everything is ready for the introduction of decentralized applications that will help companies around the world to improve their work.
Thanks to smart contracts, companies and individuals will be able to acquire ownership of property in foreign countries without having to go through the regulatory systems of foreign countries. All that is needed is a smart contract with Ethereum, completely independent of the government system organization, which can be bypassed by establishing a decentralized system.
New levels of business and private interconnection are ready and you still have time to join.
Some research has shown that in the future, 10% of the world’s gross domestic product will be realized through transactions enabled by blockchain technology. So it’s assumed that all countries of the world will use this technology for the purpose of achieving 10% of GDP. The market tokenization of assets will have a large share in this.
Some examples of what this might look like are the tokenization of works of art. Thanks to the popular currency, users will be able to own digital works of art. Great, isn’t it? Another example is the tokenization of mortgages, with which you will be able to own a residential space in a foreign country and thus earn money by renting it.
All personal documents can be stored on the ethereum blockchain with the help of a tokenization. In that way, proving your identity will be easier, without showing documents, but confirming that they belong to you via an ether blockchain.
Do these reasons sufficiently confirm the value of this currency to you?
3. Without censorship
We live in a time of free media and social networks that are our daily source of information. We’re sure that we’re aware of everything that’s happening around us, and in fact, we aren’t aware of the censorship that isn’t lacking. Facebook, Twitter, YouTube, and Instagram won’t fail to exercise their right to hide certain content or delete it if they deem it inappropriate.
Often it happens that the content is modified at the request of the government or a company that opposes making it available and visible to the public.
There are journalists and researchers who have dedicated their careers to uncovering various conspiracy theories or the deepest secrets that intrigue all people. World events or accidents that haven’t been fully clarified. However, publishing such content in public had mostly the same outcome – censorship at the request of state officials.
Ethereum has the potential to help better inform the world because of its decentralized character that doesn’t allow for state interference. All information that would be found on the blockchain would remain unchanged as long as the platform exists.
Is this the announcement of a new internet? It could be.
4. Innovative projects
This cryptocurrency is the real host of various innovative projects. Despite the occasional instability of values that occurs, ethereum rises like a phoenix from the ashes every time and seems to be additionally motivated to create new projects that will attract users and develop a decentralized internet network.
A real example is the Brooklyn microgrid project through which energy trade between community members was tested. Once again using smart contracts, energy users have successfully managed to share it with their neighbors and sell and rent it. This is the first energy transaction in the blockchain world that leaves you speechless.
The payment was made in ether cryptocurrency and the energy transaction was managed by the ethereum platform.
So what does this look like to you? Do you need a little extra energy? By opting for this cryptocurrency, you can secure it for yourself, as well as many other advantages that it provides.
Compared to bitcoin, numerous differences can be noticed. The purposes of these currencies vary and while one is intended to perform payment transactions, the other provides some more possibilities. For that reason, they are difficult to compare, but the advantages that will indicate that they are a good investment can be pointed out.
In any case, ethereum is conceived both as a platform for smart contracts and as a place to perform transactions.
Another advantage is that it was released six years after bitcoin and thus has newer and more developed technology. Data is constantly updated and new functions and projects are introduced, as well as initial errors are corrected. Also, Transaction fees, in this case, are much cheaper compared to bitcoin fees.
This currency, like other cryptocurrencies, is known for enabling anonymous transactions and guarding against fraud and theft. Users can make transactions of large sums, with low fees, since a third party, like banks, does not exist. It is possible to spend it in a large number of online stores, with the help of credit cards for cryptocurrencies, and it can also be kept in a digital wallet until the value of the currency increases, making the user significantly richer. Through smart contracts, you can become part of various projects that bitcoin cannot offer you. Are you ready to join the new worldwide web?