Ethereum cryptocurrency – Alike Bitcoin?

Ethereum cryptocurrency

Ethereum Cryptocurrency is a decentralized application like Bitcoin. Through this, you can pay things online, trade money and also buy and sell anywhere that accepts it. While compared this with the bitcoin, it has more features like Ethereum uses cryptocurrency called “ether” which runs on “Smart contract”. Smart contract uses Blockchain technology and allows it to be traded if certain conditions met. Bitcoin runs on the blockchain too but doesn’t involve the extra step of smart contract.

Blockchain technology has many other applications that go way beyond digital currencies. In fact, Bitcoin is only one of several applications that use blockchain technology today.Until almost recently, constructing blockchain applications has required a complex knowledge in coding, cryptography, mathematics as well as important resources. But nowadays it has changed. By allowing developers with the tools to build decentralized applications, Ethereum is making all things possible. Ethereum blockchain integrated service are offered nowadays by Microsoft and ConsenSys partnering together so that the developers and enterprise clients can have a single click cloud-based blockchain developer environment. Initially, they offer two tools that allow for rapid cryptocurrency development of Smart Contract based applications

Smart contract: a division contract?

Well..! an adequate number of people still get confused about what’s need of bitcoin alternative for transfer of payments like Ethereum. The blockchain is a dominant technology and it is true that we have not fully utilized it to its level. Bitcoin only makes use of one of the many likely applications of the Blockchain technology i.e. peer-to-peer transfer of funds. It has a few advantages over Bitcoin such as the feature of coding Smart Contracts and the Ethereum Virtual Machine(EVM).

Is Ethereum alike Bitcoin? Well, sort of, but not really.

Similar to Bitcoin, Ethereum is a distributed public blockchain network. Although there are some significant technical differences between the two, the most important difference to note is that Bitcoin and Ethereum vary substantially in scope and capability. Bitcoin offers one distinct application of blockchain technology, a peer to peer electronic cash system that helps online Bitcoin payments. While the bitcoin blockchain is to determine the proprietorship of bitcoins, the Ethereum blockchain concentrates on running the programming code of any decentralized app.In the Ethereum blockchain, instead of mining for bitcoin, miners work to earn Ether, a type of crypto token that strengthens the network. In addition to tradeable cryptocurrency, It is also used to pay the transactional fees and computational services on the Ethereum network. The new trend in cryptocurrency makes possible ways for Ethereum beneficial.

What can Ethereum do that Bitcoin can’t?

Ethereum cryptocurrency is like Bitcoin with a few extra features.

#1. Smart contracts are applications with a state saved in the blockchain. They can promote, verify, or enforce the negotiation or performance of a contract.

#2. Ethereum has their own Turing complete internal code… a Turing-complete code means that it has given enough computing power and enough time… anything can be calculated. With Bitcoin, it has not that much flexibility

#3. Ethereum contracts can be performed in various Turing complete scripting languages

What can Ethereum be used for?

Ethereum cryptocurrency allows developers to build and deploy decentralized applications. A decentralized application has their own purpose to its users. Bitcoin, for example, is a decentralized application that provides its users with a peer to peer electronic cash system that allows online Bitcoin payments. Because decentralized applications are made up of code that runs on a blockchain network, they are not regulated by any individual or central entity.

Advantages of Ethereum decentralized platform

Because decentralized applications run on the blockchain, they make use of all its resources.

  • Immutability – A third party cannot make any modification on data.
  • Corruption & tamper proof – Apps are based on a network formed around the principle of consensus, making censorship impossible.
  • Secure – With no central point of failure and secured using cryptography, applications are completely protected against hacking attacks and deceitful activities
  • Zero downtime – Apps never shut down and can never be switched off.

What’s the downside of decentralized applications?

Despite bringing a number of benefits, decentralized applications aren’t impeccable. Because smart contract code is written by humans, smart contracts are only as reliable as the people who write them. Code bugs or failures can lead to unintended adverse actions being taken. If a mistake in the code gets utilized, there is no efficient way in which an attack or exploitation can be stopped other than obtaining a network.

New Trends In Cryptocurrency

new trends in cryptocurrency
Today cryptocurrencies and cryptocurrency development services have become a worldwide trend known to most people. When we consider the history for cryptocurrency, it has emerged as a side product of another invention. The first cryptocurrency to be created was bitcoin and that was in 2008. Satoshi Nakamoto was the unknown inventor of bitcoin, he never planned to invent a currency and said he only developed a “peer to peer electronic cash system”. It was a new system of electronic cash which also prevents double spending. The new trends in cryptocurrency could be a real turning point for the new form of payment. Also, it is completely decentralized with no central authority.

More about cryptocurrency & New trends in cryptocurrency

As mobile application development services, people are now aware of cryptocurrency integrated applications. A normal currency like USD, cryptocurrency is also a medium for exchange. They are based on certain principles of cryptography and helps the process of exchanging digital information or else we can say that cryptocurrency is a virtual currency which uses cryptography for security. Other than bitcoins, a number of cryptocurrencies are available named as altcoins (alternate cryptocurrency/alternate coins). Some of them are Ethereum, Ripple, Litecoin, Monero, Ethereum classic, Dash, Made safecoin, Augur, NEM and so on.

What are benefits and drawbacks?

Cryptocurrencies make transaction simpler and faster. The fund transfers do not have to pay high processing fees charged by almost all banks and financial institutions. These transfers are done with minimal processing fees. We all are aware of recent economic changes and we can say that the world is economically unsafe. Now there is a need to know more about the benefits and drawbacks of adopting cryptocurrency.

Benefits:

#1. Access to Everyone:
Decentralized cryptocurrencies like bitcoins and its derivatives allow everyone to access their own coins, as they are away from central authority and control.

#2. Protection from fraudulent:
Cryptocurrencies are digital and can’t be falsified. In cryptocurrency payment system the sender has not authorized to reverse the amount. So that you can’t get fooled by your buyers on payment.

#3. Easy and quick settlement:
While dealing with a transaction, it always includes a third party and their approval. Since the whole system is decentralized there is no need of third party approval so the settlement is quick and easy.

#4. Lower fees:
Unlike other conventional financial institutions, the transaction charge for the cryptocurrency payment is either nil or lower in value.

#5. Pseudonymous:
The transaction is not connected to the real world identities.

#6. Permissionless:
There is no gatekeeper or no need to ask anybody for using a bitcoin or cryptocurrency. Also, the transaction is irreversible. After a transaction that cannot be reversed.

Drawbacks:

For global acceptance and global commerce, cryptocurrency has to improve a lot. Many people are still unaware of cryptocurrency, they need to be educated and the business world has to completely accept cryptocurrency and their usages.

#1. Lack of applications:
Cryptocurrency will need more applications for low-cost international money transfers, the creation of complex electronic contracts and so on.

#2. Value fluctuates:
The value of Bitcoins is constantly fluctuating according to demand. This constant fluctuation will cause Bitcoin accepting sites to continually change prices. It will also cause a lot of confusion.

#3. No valuation guarantee:
The decentralized nature of bitcoin is both a curse and blessing, Since there is no central authority governing Bitcoins, no one can guarantee its minimum valuation.

#4. limited scaling:
The system design limits the speed and number of transactions processed when compared with traditional credit card transactions.

Emerging new trends in cryptocurrency

#1. Growth of traditional bank involvement
Traditional banks are now making developments related to cryptocurrency and blockchain.

#2. Incremental increases in cryptocurrency value
The values of cryptocurrency will go higher, these predictions are based on other trends.

#3. International Demand Will Continue to Build
Interest in cryptocurrency is increasing day by day. Countries like china and others have developed more interest in cryptocurrency and its transactions.

#4. New applications and benefits will appear
This includes financial applications like instant microtransactions and trading as well as more non-financial uses for contracts and so on

#5. Regulators will become more involved
Because of its decentralized nature, regulators will keep a closer eye on what is happening with cryptocurrency to better understand and assess how well it actually works

#6. More privacy-protecting technologies will be developed and implemented.
This will emerge to build cryptocurrency and encourage wider adoption.

#7. Mergers and acquisitions will come up
Nowadays there is an incredible increase in the number and type of cryptocurrencies available and all of them do not survive hence there are more chances for mergers and acquisitions.  

Cryptocurrency, the digital money created from code can make the money transfer more efficient by allowing you ultimate control over your money. The peer to peer electronic transfers using cryptography makes it more secure and control the creation of new coins. This is an exciting new development in the world of finance, hence when used properly it would be the initiator of many emerging systems that will fundamentally change our global economic system.