Since Bitcoin was the original cryptocurrency and is the one with the greatest value at the moment, it gets all the attention. This isn’t a bad thing as it mainly attracts people who are not very interested in how a cryptocurrency works. They simply want a way to make some profit off of their investment.
The thing to remember is that we are still in the early days of blockchain technology. It is evolving all the time and innovations are happening fast. The problem with Bitcoin is the fact that its blockchain is not as able to adapt as some others. Namely Ethereum.
The Ethereum blockchain was built with a robustness that Bitcoin doesn’t have. It is far more functional and is not just good as a way to create a cryptocurrency. It can serve many different roles. What affect Ethereum price will have in the future? That’s what we will explore in this article.
One of the defining characteristics of the Ethereum blockchain is that it can handle the creation of smart contracts. In addition to transaction details, a block on the blockchain can also contain lots of other information. Ethereum has made it so these blocks can be used as a sort of contract called a smart contract.
Since the blockchain cannot be altered in any way, these smart contracts are gaining popularity in many different industries to store information. It is a sort of database that is spread across millions of computers instead of a single server somewhere that could be vulnerable to hacks.
The smart contract option on the blockchain is making it very popular and is causing it to raise the value of Ethereum. Since all of the smart contracts have to be verified, the reward is Ethereum so it is gaining steam and is second in value to Bitcoin as a result.
Decentralized applications or Dapps, are another big reason the Ethereum blockchain is useful. These are just like an application that can be created to use on a smartphone with one big difference. Unlike other regular applications, dapps are built on the Ethereum blockchain so they are far more secure.
This is especially helpful when there is an in-app purchase that needs to be made so it is more secure and also very inexpensive. It is more secure since any change to the data of the app would have to be verified by the users of the blockchain. Since the change would be seen on every computer of every user, this would have no chance of going unnoticed and would not be verified.
The most popular type of dapp right now is an online casino built right onto the blockchain.
There are still some scaling issues with dapps but with the blockchain always evolving it stands to reason that these problems will be resolved at some point.
*This article has been contributed on behalf of Paxful. However, the information provided herein is not and is not intended to be, investment, financial, or other advice.