Ethereum is considered to be the second most popular digital currency in the world, next only to Bitcoin. More than thirty of the largest banks in the world, tech behemoths, and other corporations have already adopted Ethereum.
So, What makes Ethereum so promising?
Read on to know more about why it is poised as the next big digital currency that will change the world.
What is Ethereum?
Before we talk about the great strides taken by Ethereum, let’s take a look at what Ethereum is.
Launched in 2015 by Vitalik Buterin, Ethereum was not intended to be
Digital money like Bitcoin. Instead, it was created to build a worldwide decentralized platform that extended the security and accessibility of blockchain to support a wide range of applications. These applications include games, advanced databases, and financial tools.
Ether (ETH) is Ethereum’s native cryptocurrency. This currency is used as a reward for miners in a proof-of-work system for adding blocks to the blockchain. This currency is used to pay the transaction fee to the miners to keep the blockchain growing.
How Will Ethereum Change the World?
Ethereum is already a very strong investment. Here are some reasons why it will be even stronger in the coming few years:
It Will Be More Environment Friendly
One of the biggest challenges that digital currencies face right now is how they impact the environment through the amount of energy that they consume. Bitcoin uses a Proof-of-Work system that involves computers solving complex puzzles to verify the transactions. This process requires an immense amount of energy with a massive carbon footprint.
Ethereum, on the other hand, also uses PoW, but it is gradually transitioning to the Proof of Stake model. It doesn’t require as much energy and is far more energy-efficient. Ethereum’s next big update to Ethereum 2.0 is expected to use almost 99.5% less energy.
It Will Be Faster
Another advantage that Ethereum 2.0 will have is that it will have an incredibly faster transaction time. For instance, Bitcoin processes 7 transactions per second. Though Ethereum’s transactions are almost at par with 15 to 45 transactions per second, its update will soon increase these numbers exponentially. According to Vitalik Buterin, Ethereum’s network could potentially handle almost 100,000 transactions in one second.
This will help Ethereum scale up and get accepted more widely around the world.
One of the main advantages that sets Ethereum apart from other cryptocurrencies is its higher liquidity. Since Ethereum is one of the most popular and widely used crypto worldwide, it is also highly liquid. This means that you can buy and sell Ethereum easily and safely. So, you don’t have to worry about having to store Ethereum yourself. Since there is so much demand for it, you will always find someone who wants to trade this currency with you. Before investing in Ethereum check its price and conversion rate (ETH to INR).
The Ethereum Foundation allows developers to work on their blockchain technology. They can create decentralized applications, which in turn accomplish different tasks. Currently, more than 3,000 decentralized applications are running on Ethereum’s blockchain.
These applications are constantly creating newer, easier, and safer ways to use the Internet and transfer property, funds, debt, and equity worldwide.
Unlimited Coin Supply
Bitcoin’s supply is capped at 21 million coins. This means that there are a fixed number of Bitcoins that can be mined. Ethereum, on the other hand, has no such cap and has an unlimited coin supply. So there is no risk of inflation related to restricted coin supply, increasing demand, and the ensuing price increase. This makes Ethereum less vulnerable to price swings and volatility. Check Ethereum and Bitcoin price volatility to know more.
Ethereum’s future growth and potential are quite promising. Investing in Ethereum is likely to let investors gain. You can educate yourself about Ethereum and its prospects on credible platforms such as Coinswitch.