you've probably heard of Bitcoin but what about ether? there's an arms race going on right now in the world of cryptocurrencies, and Bitcoin and ether are leading the pack. ether is a three year old digital currency, bitcoins closest competitor, and it's largely been flying under the radar despite growing at breakneck speed. investors have been super bullish on Bitcoin because it's nearly tripled in value so far this year, but either! it's up roughly 4000 percent year-to-date. these rivals have a lot in common. they're both open source digital currencies used to make somewhat anonymous transactions. Ether even has digital coins just like Bitcoins. they both also saw their share of big vol to lose, the most recent when ether virtually lost all its value in a single day in a june "Slash Crash". it went from $390 to 10 cents on one exchange before covering all of its losses.
but here's the critical difference:
while they're both powered by a type of technology called Blockchain, a whole lot of people think ether's technology is way better. what's Blockchain?
think of it like the DNA of a digital currency. it's an online ledger that reports every single transaction made. since cryptocurrency has no physical imprint, blockchain allows money to be tracked all over the web so it can't be copied or counterfeited.
Ether's blockchain is called "Ethereum,
and unlike bitcoin's blockchain, it features a key piece of technology called the Smart contract. It doesn't just track transactions, it programs them. we have a touch of this now with automated payments and deposits, but imagine being able to have your money invest, spend, and save all on its own. you'd literally be putting your money to work for you.
Smart contracts let you exchange not just money but property, stock, really anything without having to go through a lawyer, notary or some other service provider. It cuts out the middleman entirely. that's why investors have taken notice and why many think ethereum is a stronger and potentially more lucrative technology than the one that underpins Bitcoin. It's like the ultimate vending machine, you make a deposit of the cryptocurrency for the specific product you want and the mechanics of the transaction are automated, right down to the penalty you don't hold up your end of the bargain. so whereas bitcoin is all about payment technology, the ethereum blockchain technology has other real-world applications. Ranging from gambling to
banking, that's why a big driver of the ether rally is its popularity among BIG
corporates. just take "Barclays", it's using ethereum's smart contracts to trade derivatives.
either way for all the attention that Bitcoin has been getting, it's clear that it is no longer alone in the cryptocurrency conversation.
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