You have probably heard of BITCOIN but what about Ethereum?
There’s an arm race going on in the world of cryptocurriences, Bitcoin and Ethereum are leading this race.
Ethereum is a 3-Year old digital currency (Bitcoin’s closest Competitor) and it’s largely been flying under the Radar despite growing at breakneck speed. Investors have been super bullish on Bitcoin because it’s nearly triples in value so far this year but Ether is roughly $4000% year-to-date. These rivals are both open-source digital currencies used to make somewhat anonymous transactions.
Ether even has “Digital coins” just like bitcoin. They both also saw their share of big volume moves. Ether virtually lost all its value in a Single day in June “Flash crash” it went from $319 to 10 cents on one exchange before recovering it’s all losses. But here’s the CRITICAL DIFFERIENCE. While they’re both powered by a technology called BLOCKCHAIN, but a lot of people think Ether’s technology is way better. So what’s block chain? It’s like DNA of a digital currency. It’s an online ledger that record every single transactions made.
Since cyptocurrency has no physical imprint. Block Chain allows money to be tracked all over the web so it can’t be copied or counterfeited. Ether block chain is calles ETHEREUM and unlike BITCOIN’S Block Chain it features a key technology called the “Smart Contract”. It doesn’t track transactions (IT PROGRAMS THEM). We have a touch of this now with automated payments and deposits. But imagine being able to have you money INVEST, SPEND, AND SAVE all on its own. You’d literally putting you money to work for you. Smart CONTRACTS let you exchange not just money but property, stock really anything without having to go through a lawyer, notary or another service provider. It cuts the middle man ENTIRELY. That’s why investors have taken notice and why many think ETHEREUM is a stronger and potentially more lucrative technology than the one that underpins BITCOIN. It’s like ultimate vending machine. You make a deposit of the cryptocurrency for the specific product you want and all the mechanics of the transaction are automated right down to the penalty if you don’t hold up your end of the bargain. So whereas BITCOIN is all about payment technology…
The ETHEREUM BLOCKCHAIN technology has other real-world applications, ranging from GAMBLING to BANKING. That’s why a big driver of the ETHER rally is its popularity among BIG CORPORATES. Just look at BARCLAYS. It’s using ETHEREUM smart CONTRATS to trade derivatives.
For all the attention that BITCOIN has been getting, It’s clear it’s no longer alone the cryptocurrency conversation.
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