Second to Bitcoin in market cap and recognition, comes Ethereum (ETH). Built by Vitalik Buterin, the Ethereum Network tackles the few drawbacks of Bitcoin in addition to bright utilities and merits brought to the table. First of all, Ethereum is built on the PoS (Proof-of-Work) while Bitcoin is built of PoW (Proof-of-Work). This narrows down to two points to ETH:
- FASTER. Transactions take less time to get finished. The blockchain itself can finish a higher number of transactions per minutes than Bitcoin's
- CHEAPER. As the algorithm itself runs lighter and takes less time, this causes the transaction fees to drop due to the lower consumption of power.
Beside the basic competencies, Ethereum brings many benefits to its users like:
- LOANS. Smart contracts built on ETH allows crypto holders to withdraw a loan anytime they want with their crypto holdings as a collateral. In other words, banks will not be the best option, you will be able to do the same thing without tonnes of questions, long waiting hours and hell of paperwork
- NON-FUNGIBLE TOKENS. Often referred as NFTs are something we have never seen before. It is the future of art - digital art specifically. It tokenizes an artist's piece of art with the same cryptography ensuring its uniqueness. Therefore, the piece of art can be sold, resold and showcased with authenticity without the fear of fraud or counterfeit.
Currently, Ethereum has passed very exciting checkpoints. They might be the new banks? Actually, when we come to think about it reasonably, Taxis didn't like Ubers, Cinemas didn't like Netflix. Why would the banks like the idea of Bitcoin and Ethereum when they are questioning the basic fundamentals of the traditional banking system.
Additionally, ETH has built DApps and other advanced innovative tools that you can definitely have a look on over google. However, unlike Bitcoin, it has unlimited cap. Which means there is no limit to the supply that can be mined. Ethereum has skyrocketed this year catching the spotlight from all other assets.