Ethereum is the second most popular cryptocurrency, and it’s one of the most promising digital currencies out there. You can check its market cap. Below we’ll list some of the reasons why is it so promising.
Ethereum has a broader base to build on and a broader market to enter – as it isn’t locked to being a value transfer ledger. It can be utilized to build, deploy and implement ‘smart contracts’ equally contributed by human and computer counter-parties. Smart contracts are computer protocols that facilitate, verify, or enforce the negotiation or performance of a contract, or that make a contractual clause unnecessary. They often emulate the logic of contractual clauses. Proponents of smart contracts claim that many kinds of contractual clauses may thus be made partly or wholly self-executing, self-enforcing, or both. Smart contracts aim to provide security superior to traditional contract law and to reduce other transaction costs associated with contracting.
The major difference is the simplicity on building on top of Ethereum. For example,is a company that has developed a device that unlocks for a period of time on the condition of payment to a particular wallet. So can you imagine paying for an air b and b to turn up at the door swipe your phone and enter – no key handovers but a bit of a bummer if your phone has no battery left.
The other set of differences comes in the way Ethereum and bitcoin are built. Ethereum uses ethash instead of sha-256 – which means that individuals can compete in mining it. Ethash is memory hard meaning it needs memory to run – which in turn means it works more efficiently on a GPU.
Ethereum also has a shorter block time than Bitcoin – due to some clever hacking using the ghost protocol – which basically means that forks in the chain are rewarded but don’t cause too much of an issue! So Ethereum a transaction should be confirmed in under 20 seconds.
Another advantage is the economic model and plans. Ethereum plans to move from proof of work to proof of stake and at present has a continual stable block reward.