The Ethereum is predicted to take over the Bitcoin by 2018 for a reason, err, for a number of reasons and here you go with the top 5 of those!
- The Bitcoins main purpose is trading or transacting the cryptocurrency, whereas Ethereum not only does that but can also offer several methods of exchange such as the Ethereum Virtual Machine and the smart contracts. Particularly, the smart contract feature of the Ethereum is quite exciting, where you are allowed to create your own digital token using the Ethereum that can be used to represent, assets, virtual shares, and their likes! Also, the interesting thing is these smart contacts are compatible with any wallets and exchanges that use a standard API coin.
- The security protocol used by the Ethereum is different and, at the same time, deemed better than the Bitcoins! That is Ethereum uses “proof of stake” algorithm while the Bitcoin uses the “proof of work” algorithm and the main difference between the both is, in the “proof-of-work” method, the miners who solve complex mathematical problems are rewarded with the goal of creating new blocks and validating the transactions, whereas, with the proof-of-stake algorithm, even the creator of the new block is decided in a deterministic way according to its wealth or also known as the stake. To simply put, the Bitcoin’s algorithm needs more energy that is eliminated in the Ethereum’s proof-of-stake concept!
- The average block time of Ethereum is only 12 seconds, whereas the Bitcoins require 10 minutes for the same. Sine the block time is lesser, it allows more block confirmations, which means the Ethereum miners can complete more transactions quickly and earn more Ether, appreciably!
- We all know that the Bitcoins are hard-capped at 21 million, in which a majority of them have already been mined. But, in the case of Ethereum, to be specific the Ether, until the end of 20121, it is predicted that only half the Ethereum coins would be mined that provides more opportunities for the interested to own more Ether coins.
- The Bitcoin network supports the concept of “block reward”, where the first computer that solves each new block is rewarded with the appropriate number of Bitcoins. But, in the case of the Ethereum network, there is no such block-based reward concept and instead, the miners are allowed to leave with a transaction fee for the work done.
Thus, Ethereum is a more interesting and more benefiting blockchain-based platform than the Bitcoin and if that interests you to invest in them then, read this Ethereum Code review to find the best way!