Here’s why Ethereum will overtake Bitcoin
The virtual currency Ethereum is increasingly being adopted by investors and buyers via cryptocurrency. Since the beginning of the year, its value has increased by 330% and continues to rise. Ethereum uses blockchain technology to encrypt and record data and, unlike Bitocin, uses additional mechanisms and has extra features. More flexible and faster than Bitcoin, Ethereum is more than just a currency for payments. Let’s find out the reasons why Ethereum will overtake the world’s best-known cryptocurrency.
It allows you to create smart contracts.
Smart contracts are contracts that are encrypted and authenticated using blockchain technology, which is used by the Ethereum coin. The encrypted contract is executed automatically once certain conditions are met. Smart contracts lead the way for NFTs because they allow you to hold information about a work’s copyright and royalties.
Uses a decentralized platform (DeFi)
Ethereum is a programmable blockchain, so it allows you to build on top of other applications or cryptomoney within its network. DeFi (Decentralized Finance) are used by Ethereum and this has sparked an explosion of smart contracts and automated agreements that do not need the presence of intermediaries. Hence, a multitude of applications have been created, thanks to the possibilities offered by DeFi and Ethereum. In fact, ‘80% of the applications available on the network use the latter currency.
Ethereum 2 kicks off
The great anticipation of Ethereum 2 is being felt. A massive update is expected to be released in several phases. Ethereum 2 will be more scalable and make the virtual currency sustainable, as mining is polluting. Coins will be produced through proof-of-stake, a new methodology that doesn’t consume much gas. According to a report by JPMorgan bank, in the long term Ethereum will overtake Bitcoins as it is used daily and provides more convenience than Bitcoin. In terms of innovation and the interest it raises for developers to make applications it is definitely superior. The speed of change in cryptocurrencies could turn the current situation around and the use of Ethereum is increasing. The coin has been around for 6 years, while Bitcoin has been around for 12 and is still a currency that needs to grow. However, the possibilities it offers are greater and the possibility of exchanging places with Bitcoin is extremely high. In the last few weeks, after a speculation by Elon Musk, Bitcoin dropped early and Ethereum is continuing to grow.Referred to as “The Flippening“, the exchange between the two coins is not so unlikely.