With the slow adoption of SegWit and Lightning network implementation for BitCoin, Ethereum has risen to prominence recently. The two have stark basic contrasts, but in the end are both considered the framework for "cryptocurrency". What will the future look like, will one surpass the other, or can both peacefully coexist?
There have been a multitude of new tokens released on the Ethereum blockchain, hence the label ERC20 compatible. Previously, to be "ERC20 compatible" gave a token a fair amount of trust that it was built on legitimate programming technology. Since the people behind it were concerned with it's integrity on this level, we assumed they were not out to scam us necessarily, but more concerned with the quality of the project.
This changed a bit recently, in line with Vitalik's vision that the Ethereum network is basically just a platform to run other projects. Similar to how we all have devices with Windows, Android, or iOS, and we download apps to run on these operating systems. Anyone can design an app, and now anyone is able to develop a crypto token.
This comes with the good and the bad (and some ugly as well). The good is that this allows for all types of applications. Some are for serious use like financial or contract applications, but others are less important, such as entertainment, gaming, and other small transactions. These less significant transactions can be stored on subchains split from the main blockchain.
Hard core BitCoin maximalists may disagree, but I believe being able to channel transactions onto different sidechains categorized for that type of transaction keeps the picture clearer and allows for faster and less expensive transactions. Just as in any process, grouping similar tasks makes them more efficient. BitCoin purists would say this can be done with SegWit and Lightning network, and hopefully it can.
Ultimately there will be more than one competing entity for blockchain supremacy, and even if BitCoin reigns King (as I hope and expect), there will also be room for platforms like Ethereum to conduct the business of lower profile activities, and allow BitCoin to handle the higher priority transactions.
That being said, all the new ERC20 compatible AirDrop tokens being released on Ethereum clutters the network. As we saw in the case of CryptoKitties, a flux in minor transactions can clog the network, preventing more important transactions from going through, similar to BitCoin mem pool spamming.
I don't take any of these new tokens very seriously, but it has been great practice and experience downloading wallets, sending coins to friends or exchanges, and trading for other tokens. I certainly feel more comfortable whipping around 100's of penny alts in MyEtherWallet than when I made my first transaction from CoinBase to my Electrum wallet praying it would work as I clicked the mouse and then checking it 15 minutes later.
Yes, I've lost a few and signed up for some that never materialized, but what did I lose? Nothing. The small value in the coins pays for their trade fees. Much better than experimenting with BitCoin. I guess I'm using MEW as my "testnet" to hone my skills. There will be no mistakes when it comes to my real portfolio of coin. And who knows if or when one of these crazy new coins will come up with an innovation that changes the game? It only takes one.
Even with the new projects on Ethereum, I still feel BitCoin has the winning ticket in the long run. Their Dev team put the "dev" in devoted and BitCoin has far greater acceptance so far. They have a huge dominance over any other crypto as far overall value of supply. What do you think of Ethereum as opposed to BitCoin SegWit and Lightning? Let me know, I think there is room for both, as outlined above, but things change so fast and I need your input.
Happy Hunting,
CryptoHawk1