Ethereum has, since its launch, thrived on positioning itself in the crypto space as a decentralised platform that avails transactions without an intermediary.
On the other hand, Bitcoin has retained its reputation as not just the frontline of cryptocurrency but the most expensive coin. Although the two currencies are nuanced by some features, they both have market caps of billion of dollars. Bitcoin has a market cap of $923 billion, and Ethereum with a $470 billion market cap.
Also, the two currencies are characterised by some similarities, which include digital currencies and blockchain technology. For a newbie just gaining entrance into the crypto market, there might be some consideration into the price movement with an investment in Ethereum over Bitcoin.
1. Sustainable And Greener Mining
Most cryptocurrencies, including Bitcoin, are generated by the proof-of-work model, which has, in turn, had a discourse on environmental concerns (greenhouse gas emissions). The proof-of-work (PoW) model is based on trial and error in an expedition for a valid block, but it consumes a massive amount of energy.
In reaction to this, the cryptocurrency world has faced heavy criticism and slight industrial adoption. Ethereum has developed an alternative protocol for the Ethereum blockchain (EIP-3554), a proof-of-stake (PoS) model that consumes less energy.
The PoS model enables Ethereum users to stake their coins for transaction verification while rewards are earned. Contrary to the proof-of-work, several problems would be removed with reduced energy consumption.
In a prediction by the Ethereum Foundation, the new blockchain model is to bring about a 99.95% reduction in the total energy being consumed in Ethereum mining.
2. NFT Grand Enabler
The crypto space is recently buzzing with the development of non-fungible tokens (NFTs). For beginners, the ERC-721 standard of the Ethereum blockchain made it possible for NFTs to be anchored on the crypto market. Since the emergence of NFT, many NFTs have been created by other cryptocurrencies, but Ethereum has made it possible for them.
3. Ethereum Is Multi purposeful
The Ethereum blockchain uses a Turing-complete language to create smart contracts. Smart contracts are bits of code used to access requisite knowledge. This feature has enabled Ethereum to have various uses ranging from finance to healthcare, including gaming.
Using smart contracts, every individual can create their respective crypto token. Compared to Bitcoin, Ethereum acts as a foundation on which other structures can be built in the cryptocurrency world.
In similarity to the narrative surrounding the appreciating value of a piece of land with time, the continual use of the Ethereum blockchain in the competitive market will increase its importance in the long run.
4. DAOs And Apps
Bitcoin is notable and famous in the crypto market due to its status as the pioneer of cryptocurrency. However, the Ethereum blockchain and its volatile nature might skew the line between Bitcoin and Ethereum with time. But before we get to that time, buy some Ethereum.
Decentralised Autonomous Organizations (DAO) exist on the Ethereum blockchain without the meddlesome of any man. Freelancer networks, ventures, and NGOs can easily use it.
Also, decentralised applications (dApps) are built using smart contracts. Here, there is no central authority that Facebook and other apps characterise.
According to statistics, over 2500 dApps are currently found on the Ethereum blockchain as they can be implemented in banking, shopping, and social media platforms.
5. Ethereum’s Future
Ethereum has a community of developers working to ensure the blockchain achieves its full potential for app development. This feature furthers Bitcoin, which has just a pool of voluntary techies. What this implies is that the development of the Ethereum blockchain is continuous, even as it is extensible in comparison to the Bitcoin blockchain.
By the end of 2021, Ethereum 2.0 will be fully launched. This advancement will further aid Ethereum in securing its future position. Hence, Ethereum’s future is filled with prospects.
Having a delve into cryptocurrency trade is never too late. The newbie needs to digest the above five points before concluding which of the two coins to buy. Always remember that Ethereum has latent potentials that have not been tapped.