Recently I picked up my own ethereum wallet. Let’s make thing clear though. We’re excited about Blockchain technology. Heck, we’ve been excited about Bitcoin for years. Sitting at $10 billion dollars of market cap right now, Bitcoin is the leader in cryptocurrencies. But will it stay that way forever?
The Case for Ethereum
- Smart Contract Codes in Ethereum
A smart contract is a piece of code, written in the high-level programming languages available in Ethereu. Namely, they would be Serpent or Solidity. The program’s code is inputted into a specific transaction on the chain, along with a fee of course. After the execution of the transaction, the code is finally stored in the blockchain. It is now securely protected by the Ethereum ecosystem.
- Decentralized Applications
These applications make it possible for users to directly communicate and transact directly and securely. This eliminates a need for centralized companies. This of course, is handled by Ethereum’s code. Efficiency is highly increased as a result of this. Users no longer need to wait for random strangers to setup websites to store their coins in. They no longer need to risk their precious Ether in third party exchanges. In addition, all their information is protected from others.
- Faster Transaction Confirmations. However, this does not translate to secure confirmations. It’s a very good point for marketing their product.
The Case for Bitcoin
Bitcoin is still leading heavily in the cryptocurrency realm. It has not only stood the test of time, but was the most innovative product since the invention of the internet. That deserves a degree of respect.
Bitcoin can do everything Ethereum can. It’s just harder.
In case you didn’t know, Bitcoin and Ethereum are similar. They both operate on a public blockchain. You can get a Bitcoin wallets, and an Ethereum wallet. It’s just that Ethereum was designed with more features in mind, presenting real advantages over Bitcoin. It begs the question: is Ethereum simply all hype? Users won’t switch to Ethereum if they can already do everything they want to on Bitcoin. With that in mind, there are some real challenges to any coin competing against the top dog.
Bitcoin is immutable (ahem)
The Ethereum community recently decided to hard fork and take away coins from a hacker on the chain. The user took about 12% of the Ethereum currency on the market from dao contracts, and ethereum wallets, making many investors feel outraged. So what did they do? The Ethereum developers decided that it was a good idea to hard fork. In case you don’t know what that means, it’s basically reversing time and invalidating the hacker’s transactions. While this seems beneficial, it goes against the whole idea of decentralization. How can a coin be decentralized if the developers can take coins from one person and hand it to another?
The Unclear Winner
My personal bias says Bitcoin will stand for another few years. Ethereum’s features just aren’t competitive enough. The infastructure and community behind Ethereum doesn’t seem to be all that great. They both have gambling sites. They both have Bitcoin wallet or Ethereum wallet websites. Bitcoin has had many years to develop their community and will likely force Ethereum down as cryptocurrencies get more popular.