It’s been around for a long time, and it has retained its value and popularity throughout the years. Because of this, you might think that it’s hard to compete with Bitcoin in the world of digital currency. But we’re here to say: not so fast, my friend! There are plenty of other digital currencies that offer many of the same benefits as Bitcoin, with some critically important differences. We believe one of these currencies, in particular, stands out from the crowd: Ethereum.
In this guide, we’ll talk about what makes Ethereum such a great choice for alternative forms of cryptocurrency in the present bitcoin trading.
Ethereum is the second-best cryptocurrency due to its working mechanism, Proof of Stake algorithm, and environment-friendly nature. Ethereum is built on a new technology which makes it easier for the developers to build decentralized applications on Ethereum. The platform has been able to surpass several hurdles in a short period. Ethereum is based on the Proof of Stake Algorithm, which helps save huge energy and reduces mining costs. The Proof of stake algorithm will be implemented sometime in 2018. Ethereum has a robust infrastructure that can support the operations of other businesses, thus eliminating the need for them to have their servers. This thus helps in saving costs and improving efficiency.
Ethereum has been a popular choice for investors since its launch. It has earned a reputation as the second most valuable cryptocurrency globally. Ethereum is an open software platform that allows developers to build and run decentralized applications. There are several reasons why Ethereum has become so successful. There’s no way around it: cryptocurrencies are the future of finance, and Ethereum is one of them. But why is it so special? Here are the reasons why it’s the best cryptocurrency that isn’t Bitcoin:
Reasons for the growth of Ethereum
- Working counterpart
The first reason is its working mechanism. Bitcoin uses SHA-256, which isn’t all that scalable as algorithms go. But Ethereum uses something called Ethash, which features a Proof of Work algorithm that makes it better for scaling and incentivizing miners—which means it’s more likely to stick around for longer. Although they use a different consensus mechanisms, both Bitcoin and Ethereum use a proof-of-work algorithm. In this system, miners compete to solve cryptographic puzzles to validate new blocks of transactions. The winning miner receives a reward in cryptocurrency.
- Proof of stake
The second reason is that Ethereum uses the Proof of Stake algorithm in its consensus protocol. Using this algorithm means that you can release new coins without using any transaction fees or paying anyone to mine new blocks. The “miners” are validators who don’t get paid for their work. Instead, they get rewarded based on how much Ether they own and how long they’ve been holding on to it.
- Environmental friendly
The third reason is that Ethereum is better for the environment than other cryptocurrencies like Bitcoin, which requires excessive energy to run. Ethereum only uses about a fifth of what Bitcoin does! Thus, being highly good for the ecological aspect, it is mostly preferred over other crypto assets that put forth an extreme pollution level towards the economy.
Ethereum is the second-best cryptocurrency in the world. It works on the EVM, which can execute scripts using an international network of public nodes. The cryptocurrency also uses a proof-of-stake algorithm, which is more environmentally friendly than Bitcoin. While Ethereum is built on top of new technology, it’s worth noting that some cryptocurrencies also use new technology. However, none of these new systems have proven as reliable or as useful as the blockchain and the peer-to-peer protocol.
In a nutshell, for all those looking forward to getting themselves into the world of cryptocurrencies, Ethereum can be your priority due to the list of benefits it offers to the common masses. Thus, if you are looking for a somewhat advanced cryptocurrency, Ethereum can be the one that has a bundle of opportunities to offer not only in respect of its fundamental structure or working mechanism but also alongside the benefits such as being in contact with a leading virtual asset together with helping things come out in the form of rewards.